Is Network Marketing A Pyramid Scheme?

By: Joey Fratantoni Click author's name for more of his/her articles

So what is going on?

What exactly is the deal with this business model? Can you actually make good

Let's go ahead and see just what network marketing is all about.

First and foremost network marketing is a genius business model. Companies that use this model are creating a win-win situation for the company as well as the people who work for the company.

By implementing this business model the company is able to cut out most of the middle men you will see in most businesses selling retail products.

These middle men include:

-wholesalers
-distributors
-shippers
-retailers

By eliminating these people the company is able to make more money on the sold each month.

The business model works on what would appear as a pyramid model. When you join a network marketing company you are at the top. of you. This is also called a leg or level. Compensation structures can vary slightly from company to company. be able to earn each month. For each member you sponsor you receive a commission. As your organization grows so does your income. You have leverage now. Everyone that comes in has the same opportunity to build their organization or down line.

So why in the world is their such a bad reputation?

This business model is thought of as a pyramid scheme and has a bad reputation The problem can be traced to the recruiting aspect.. Many of the conference calls and other marketing methods employed by distributors target your emotions. business and experiencing financial freedom. Then the painful reality sets in. You are now in the business and find it hard to sponsor people and make sales. The emotional rush begins to fade and you are faced with the realization that this is going to be more difficult than you expected because it is an actual business.

Network marketing is a very real business. The people who actually do well treat it just like a business. The bad reputation comes in because people who found it difficult to build their business gave up and then slandered the entire business model.

You are required to possess specific knowledge in order to do well in this type of You have to master skill sets like:

-sponsoring/ recruiting
-generating leads
-marketing (the product and yourself)
-and selling

Most people are not born salesmen, recruiters or markers. So when they fail immediately at network marketing they don't blame themselves, they blame the entire business model. Millions of people each year join network marketing companies with the hopes of attaining a new lifestyle changing income, but it's the people who actually learn the necessary skills to obtain this goal.

So the next time you hear someone say network marketing is a scheme or it is not six and seven figure incomes.

The choice is up to you when you join one of these companies. Are you going to do what it takes to make it? Or will you just try it for a while and if it doesn't work out in two weeks you slander the whole concept completely? If starting a business was easy we would have more millionaires, but it takes hard work and commitment to be successful in any occupation. Remember that.

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About The Author: More and more people want to knowis network marketing a pyramid scheme? As you have just learned it is not. Come finally learn how to actually succeed in network marketing using the online attraction formula.