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I wonder if this questioned is asked because people really want to know if network marketing is a scam because if it isn’t they’re ready to get in the game of entrepreneurship or is it just a passive move to stick with their J.O.B. It sometimes surprises me when people who seem to be otherwise intelligent and aware asks if network marketing is a pyramid scheme, a home based business scam or multi level marketing scam. I know they’re intelligent enough to know their corporate organization is also based on a pyramid structure. But does a pyramid structure represent an actual pyramid scheme? NO it doesn’t. I know they’re intelligent enough to know they’ll never make more money than the CEO, CFO, CMO, COO, or VP of their company.

This similarity of the one at the top making most of the money while those at the bottom make little to no money still doesn’t make the typical corporation a pyramid scheme. A Multi Level Marketing scam is a form of fraud in which there’s no real sustainable product or service offered for sale. Instead a residual income scam is what’s for sale and involves money exchange for enrolling people in the pyramid scam based on a fake business model offering a ghost product or service and the top people receive most of the money. Some of these scams are internet marketing scams so don’t let the high-tech outfit fool you. Even if someone came in down the line and put in more effort, they wouldn’t make more money if any at all.

In the investment world, a ponzi scheme is investment fraud which occurs when the operator promises a high ROI to investors and runs off with the money or fails to return the dividends to investors as promised. Essentially a ponzi scheme is a pyramid scheme. Ponzi scheme is named after Charles Ponzi, however Bernie Madoff is synonymous with this term because his fraud was considered the worst scam ever.

Let’s make this clear, a pyramid structure doesn’t always mean it’s a pyramid scheme.

The Food Pyramid, US Dept of Treasury organization chart, and so on. You get the picture? Yes, so let’s move on to network marketing. Now that you get network marketing pyramid scheme or multi level marketing pyramid schemes are not all inclusive definitions of the network marketing and   MLM  industry, let’s talk about what multi level marketing is. It’s not Monavie pyramid scheme it’s Monavie LLC, a real, legitimate company. It’s not Xango scam, it’s Xango LLC, a real, legitimate company. Both of these companies have a sustainable product and they’re built on a strong successful business model. There are many legitimate  mlm  companies out there: Avon, Herbalife, Mary Kay, and Numis to name a few.

Would Bill Clinton Endorse A Multi Level Marketing Scam?

No, he wouldn’t. Yes, he would endorse the network marketing industry as he did in a video endorsing the direct selling and home based business industry. He spoke of the positive benefits for the individual, the economy, and the increase in lifestyle for the whole family

Success Leaves Clues…

-In 2001 Robert Kiyosaki wrote The Business School For People Who Like Helping People. In this book Robert recommends Network Marketing Business and said in an interview he didn’t make his millions in network marketing but if he had to do it all over again, he would choose network marketing. He said, “A network marketing business is a revolutionary way to achieve wealth.”

-In 2003 Warren Buffett, 2nd wealthiest man in the world bought  MLM  Company, The Pampered Chef.

-Paul Zane Pilzer, world renowned economist, millionaire, best-selling author, and economic advisor during two presidencies (1983-1989), wrote The Next Millionaires in 2006. In this book, Paul Zane Pilzer explains in detail how 10 million new millionaires will be created from 2006-2016 in the Direct Selling and Home Based Business industry.

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Source by Neef Davidson