Wow! I'm sure you're about to get your pen and paper out. This is such a big long topic and I can't begin to tell you about what is bottled up inside of me right now. So I am going to take it slow.
What is a Pyramid Scheme?? Well, to be honest with you everybody uses the word and half of the people that use it have no idea what it means. (They think that Network Marketing is a scheme...wow if they only knew that they are in one too - JOB)
A pyramid scheme is a primarily a "scheme." Pyramid is not a bad word. What is the definition of a pyramid. Lets see, according to my Google search this is what it is: "A pyramid scheme is a fraud based on recruiting an increasing number of investors." (sbinfocanada.about.com/cs/marketing/g/pyramidscheme.htm)
In a nutshell it is a company that stays around for a little bit of time, because they are not selling or marketing any particular product, they are recruiting people and taking their money and the people at the top are making the money.
So if you are looking for a company to become a part of, then you definitely want to do your research. What are they selling? If they are not selling anything or their main thing is to recruit and their is no real legitimate product or service then run fast the other way!!
Eventually all pyramid schemes collapse because from experience it doesn't matter how many people you can recruit what matters is do the people you recruit have the skills to recruit. You can not duplicate yourself you can only duplicate a system.
Lets talk about what a pyramid scheme is NOT.
It is not a network marketing company. What! Ya that's right.
Let me give you an example.
Networking is talking or sharing information to people. Kind of like a network of computers right, that's two or more computers sharing information.
What is marketing - "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives." -Contemporary Marketing Wired (1998) by Boone and Kurtz. Dryden Press.
So lets recap Network Marketing is two or more people sharing information about a product, service or ideas with the objective to form a relationship that will satisfy both parties. What do you think? Is that too complicated?
Let me give you a down to earth example of the what a network marketing company does and some do not unfortunately.
Lets take you for example.
Where do you work? Wal-Mart, Sears, Home Depot, wherever.
If you work for someone else and their is an owner president or manager, it goes something like this: President, Vice President, Manager, Supervisor, Tellers or Cashiers or Technician. You fill in the blank. Well if you write it down kind of like a pyramid you've got someone at the top and then next and then next what do you have... Oh no... Its a pyramid.
Well ya kind of. Its just different levels of management or different positions in the company right?
Well then what does the company you work for offer I mean do they just hire people for the heck of it? I doubt it. So in essence you are in a network marketing company correct? The only thing is in a normal JOB. The owner of the company is the one in charge and they are in it to market their products and services and unfortunately you will never be the president of the company and they have hired you to help them.. They can't do it on their own. For those who choose to work for someone else that is great, although; with today's economy you best have a PLAN B. Those who choose to work arm in arm with a marketing firm and get paid by what you do everyday is also great.
In closing let me give you a cute example, sorry cute is in my vocabulary, I've got little kids... Anyways.. When was the last time McDonald's sent you a check? What do I mean by that? Well what I mean by that is (you can use this with whatever fast food restaurant or sit down restaurant you might go to). Lets say that you just had the best chicken sandwich ever, and you left there finished your sandwich and you just had to tell your friends about the sandwich. You just networked right? Then your friend went and tried out the sandwich and then he told his friend and then he told his friend about the sandwich.... you get the idea.
Well I know for sure that McDonald's did not send you a thank you note with a check attached here is your portion for referring your friends to us. Nope I don't think so.
I am partial to Network Marketing because it works.... Don't get me wrong its not always easy actually it is work, it is no free lunch, owning your own business is hard work especially if you are doing it right and your objective is to make a secure financial future for yourself.
Network Marketing in my opinion is the best thing that was created. If you look at everything that you are involved in everything that you see, the idea behind everything boils down to network marketing. Just think about it.
One advice that I would give you though is be careful... Make sure the products and services are legit and they are helping people. If you don't like to talk to people, if you don't like to help people, if you don't have compassion for people stay away from Network Marketing Companies. A Good Network Marketing Company should be designed to build relationships with other people. It is a people business.
I hope that you enjoyed this rather long article but I hope that it has helped you in some way.
