The difference between Pyramid selling Schemes and Network Marketing Business.
Pyramid selling Schemes: As the name suggests these are schemes and not proper business. In India Scheme is something which is like a sale, shopkeepers and retailes promote their products saying " There is scheme going on this product sir you must buy it now to benefit." What I understand about scheme is that it is something which comes and goes.
Now lets see the characteristics of a Pyramid selling schemes.
1. The First Diffrence you will notice is there is no product involved or no credible/retailable product is involved. This is purely a money circulation scheme.
2. Money is mainly made through recruitment of new recuits and not through product sales.
3. Only people who have joined in the starting makes most of the money as these schemes have unbalanced business business model, which saturates and the company is no longer grows and eventually shuts down
4. It requires you to make huge investment to join the business as joining costs
5. Mostly no ethics/ code of conduct/ rules and regulations followed.
Now lets see Network Marketing Business/ MLM
As the name implies it is a business and not a short-term scheme. It is not a get rich quick scheme. You will need to put in efforts and time to make good here, but the good news is if you follow a system and with team efforts your efforts get multiplied exponentially.
Here is what you will find in a Network Marketing Business
1. It is a product based/volume based business. It is not how much members you can make.
2. Payout is calculated on volume generated by the products consumed/ moved by you and your Team.
3. It does not over favor people joining in the starting, it gives an equal opportunity to every one. It is many times seen that a downline earns much more than an upline. It depends upon the effort put in. But I would also like to add that it gives a very good advantage if you join early and take the first mover advantage.
4. It requires very less investment to join, generally a small joining Kit costs which contains some literature and tools to get started in the business.
5. The companies have high ethics and rules and regulations to give a fair play to its members.
In many countries pyramid selling companies are banned by law. In india also there is a very strong demand to get a law in place.
Now the question is how would you diffrentiate between pyramid selling company and network marketing / mlm company.
Here are some questions you might want to ask
Q1 . Is there a Proper, usable and retail able product involved?
A product is a Backbone of a mlm company. The product should be world class and if not best should be one of the best.
Nowdays what is happening is pyramid selling companies are involving a product in the start up cost, to make it resemble like a legitimate company. But what you should check is if the product is usable and if it is rightly priced. The best network marketing companies have replenish able products which mean you use them regularly and which you will need to replenish every month. products like House hold cleaners, personal care items, consumables, cosmetics, nutritional supplements, juices etc.
Q2. Do you get commissions on recruitment of members or on distribution of products?
If you get commissions on recruitment, please walk away from that company.
Well Applying the above Criteria to Monavie India, It is a clear Bussiness not a sceme of sorts, which has a proven track record, Best product and best in the industry compensation plan. Well accroding to my expirience Monavie is poised to be the fastest growing company(will be writing a pot about it later).
What is monavie? http://monavieindiateam.blogspot.com/2011/09/what-is-monavie.html
Monavie Products http://monavieindiateam.blogspot.com/2011/09/exciting-news-monavie-india-launches.html
Reasons to Join Monavie India http://monavieindiateam.blogspot.com/2011/09/reasons-to-join-monavie-india.html
NICE DEAR ABHI KEEP IT.
ReplyDeleteAman Bose
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