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Is Market America A Pyramid Scheme? Is Team National A Pyramid Scheme? Here Is The Pyramid Scheme Definition!

So the question is, are these companies really pyramid schemes?

To start off, I want to get the meaning of pyramid scheme out of the way. So here is the pyramid scheme definition.

It is a non-sustainable business model that involves the exchange of money for enrolling people into a scheme where there is no real product or service. I just want to repeat that. There is NO REAL product or service. So what happens is, eventually the number of new recruits fails to sustain the payment structure and the scheme collapses with most people losing the money they paid in. And the reason is that distributors concentrate on the money that they can earn by recruiting new people and completely ignore the marketing and selling of any products or services. Because there are none!

So just to clarify, a pyramid scheme is illegal.

This is very different to Network Marketing where a company decides to sell their products direct to the consumer through word of mouth. They use this method instead of paying for advertising costs. So instead of paying the advertising companies, they pay their distributors commissions for doing the work. So in reality, the main goal is …

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Network Marketing vs. Pyramid Scheme

I think I need to clear this up once and for all so that I don’t have to keep repeating myself.

And I think that those of you in the business can definitely relate to this. As soon as people hear that I am in Network Marketing, the first thing they say is “You mean one of those illegal pyramid schemes?!”. And I laugh because there is a huge difference between the two and most people don’t know what it is. Firstly I would like to clarify that Network Marketing is legal, and a Pyramid Scheme is illegal.

So what’s the difference?

Well, a Pyramid Scheme is a non-sustainable business model that involves the exchange of money for enrolling people into a scheme where there is no real product or service. I just want to repeat that. There is NO REAL product or service. So what happens is, eventually the number of new recruits fails to sustain the payment structure and the scheme collapses with most people losing the money they paid in. And the reason is that distributors concentrate on the money that they can earn by recruiting new people and completely ignore the marketing and selling of any …

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