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 to distribute real products and services.

This is completely legal.

So back to the question. Is Market America a pyramid scheme? And Is Team National a pyramid scheme as well?

The answer is no. Both these companies and many like them are not pyramid schemes. In fact they are completely legal and do offer real services and real products. However, the reason why this question about them being pyramid schemes arises so often is because there have been quite a few people that have lost money trying to do the business.

And do you want to know why?

The truth is, Network Marketing is a tough business. Some people make money and some people lose money. And normally, when people lose money, they get upset and automatically assume that these companies like Market America and Team National are pyramid schemes. When this couldn’t be further from the truth.
It all comes down to the right training. And it is true that most network marketing companies do not train their new distributors on how to market the right way.

That’s why it is so important to find the right mentor to show you the right way to market your network marketing opportunity. It is also very important to learn the right marketing techniques so that you can significantly increase the chances of your success in this business.

For more on how to leverage the Internet and market your network marketing business the right way, fill in your name and email below.

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 products or services. Because there are none!

Network Marketing on the other hand is a business model 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 to distribute the products.

There are two ways to make money in this industry. By selling the products or by recruiting new distributors. People can do either one or both. But because of the way the business is set up, most distributors naturally consume the products that they distribute as well.

The reason why a lot of people confuse Network Marketing with Pyramid Schemes, is because the shape of the business model for Network Marketing is in the shape of a pyramid.

Unfortunately this confusion is something that will continue to give this industry a bad reputation. But I’m willing to stick it out because it is this pyramid shape that allows so many of us to live the lifestyle that we choose. And it pays the bills!