Network or Multi Level Marketing
vs
Pyramid Schemes

Contrary to the opinion of some people Network Marketing, sometimes referred to as Multi Level Marketing, is a legitimate method of marketing products and services. It is similar in structure to the pyramid scheme, but is by no means the same thing.

The big difference is that in the network marketing business emphasis is on marketing the product or service that the business is offering. Also the primary focus is on marketing to the general public, not on selling to the new recruit.

In a pyramid scheme the emphasis is on recruiting new representatives usually at a very high fee to join the system, with the promise of high commissions paid on the buy-in fee of the new representative. The commission on the product or service is usually very low.

In a network marketing company, there is an actual product or service that is competitive in the market place. There is also training and help in the marketing of the product to the customer.

True, there is the recruiting side of the business. After all that is what makes it network marketing, you having a network of representatives to market the product so that you can receive commissions on their sales as well as your own. In doing this you make it possible to one day retire with a residual income and be able to live a life that you always looked forward to.

If you would like to read what the

Division of Consumer Services
Florida Department Of Agriculture

has to say on the subject.