The Importance Of Knowing The Difference Between Networking Marketing And Pyramid Schemes


by Billie Josey - Date: 2010-08-07 - Word Count: 348 Share This!

There are certain things you should look out for when it comes to choosing a networking marketing group to join. Networking marketing is a very effective business model that allows its members to profit from both selling and referring. This is currently very popular among people who want to start their own business. Networking marketing, though, is often mistaken for what's called a pyramid scheme. A pyramid scheme is an unstable and ineffective business scheme that profits from referrals and the joining fees the pyramid groups require from participants. If you want to find the right networking marketing group for you, be aware of the main differences between the two.

One main difference between networking marketing groups and pyramid groups is their primary means of profit. Pyramid schemes profit solely from referrals. In networking marketing, though you are given opportunity to profit from referrals, your primary income is your business. You profit mainly from your selling. Referral income is only s bonus. This is the first important difference of the two.

Second, a networking marketing group helps you establish your own business. You success depends on your ability to market the goods they provide. A pyramid scheme, on the other hand, merely encourages you to recruit more people into the group. The pyramid promise is that if you recruit a number of people who are also good at recruiting people, you can profit without doing anything. When a group promises you all this then start thinking twice. In a scheme like this, only members who are part of the tip of the pyramid earn a lot. The rest will never see such a premium.

It's important to know the difference between the two. Knowing the difference between networking marketing and pyramid schemes can help you avoid possible headaches and problems. If you know what you are doing, it is hard to fail. To find out more about these two business models, read up on the two topics. Many articles are available for reading online. With proper research you can join networking marketing groups and set-up your own home based business.

Related Tags: networking marketing, pyramid schemes, networking marketing group, between networking

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