What is the difference between pyramid selling and network marketing?
In pyramid selling, the primary goal, focus, and purpose is to collect your money and convince you (with the promise of big returns) to recruit others who pay money, too. Network marketing is different. It is a marketing strategy that aims to sell products by leveraging a wide network of distributors. The goal of network marketing is sales, not recruitment.
There is a difference between a multilevel marketing (MLM) company and a pyramid scheme. MLMs are legal, legitimate network marketing companies, but pyramid schemes are illegal scams designed to steal your money. Learn the difference between MLM and pyramid schemes so you can distinguish between them.
Key Takeaways
* Multilevel marketing is legal, but pyramid schemes are not.
* With multilevel marketing, the focus is on selling products, but with a pyramid scheme, the focus is on recruiting new people.
* To avoid being scammed by a fraudulent company, research it and its products ahead of time.
* If someone promises huge returns or pressures you to act quickly, that's a red flag they may be part of a pyramid scheme and not a legitimate MLM.
MEMBERSHIP CLUBS
What is a membership club?
A membership club is a member-based organization that is composed of people with similar interests and offers benefits to the members such as products, services, exclusive access, or discounts. It runs with the collection of monthly or annual subscription fees.
