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Should I invest in a "network marketing" company?

Some one approached me about a "network marketing opportunity". I've been to these meetings before and I know it has nothing to do with the products offered and everything to do with - you get 3 people (@ $300.00 ea.), then they get 3 people...................but even if I call it what it is - a pyramid scheme, the math still works, so am I crazy or unethical to consider doing this?

Public Comments

1. With these schemes, you will find it very hard to find 3 people to sucker into joining the scheme. You may think it is easy, but you will find it harder than you think. You will find most if not all of your friends and relatives will refuse to join up. Read these links. They discuss the problems with these schemes better than I can. qzz http://www.skepdic.com/mlm.html http://www.skepdic.com/pyramid.html http://www.vandruff.com/mlm.html
2. a pyramid scheme is a pyramid scheme, it's a waste of time and it doesn't work unless you are the top of pyramid scheme. did i mention it's also illegal??
3. A little bit of both. Pyramid schemes only work if everyone involved holds up to their obligation. Money owed to you has to pass through the hands of someone else, in many cases a stranger. Do you think there aren't people who wouldn't just pocket all of the money and be done with it? Not to mention, pyramid schemes are illegal. You could be charged with fraud, or even tax evasion.
4. My best advice is to stay away from MLMs unless you your self use the product and you believe in it's benefits . It's only a pyramid scheme if there is no product involved also I would look for a company that sells consumable products, that way you get a residual income from future purchases from current customers. I would not get in to any MLM that had just a one time charge for it's product. this is a disaster waiting to happen especially when you consider that 95% of network marketing companies fail leaving their affiliates hanging out to dry. Do yourself a favor and do some research on the company to make sure they have been around long enough to be stable yet not so old that the market is already saturated with distributors. There are only two MLMs I would recommend at this time they are : Mona Vie and Success University http://www.monavie.com/neopoe http://www.randerson12.successuniversity.com
5. Have you actually done the math? You 3 9 27 81 243 729 2,187 6,561 19,683 59,049 177,147 531,441 1,594,323 4,782,969 14,348,907 43,046,721 129,140,163 387,420,489 1,162,261,467 3,486,784,401 10,460,353,203 That is 21 levels down and you already surpass the population of the earth. Do you REALLY believe everyone has the opportunity to just keep expanding by a factor of three??? If you are looking to make money off of recruiting people, you better get in early and you better leave your morals at the door. Best of luck.
6. Actually if you are going to meetings and they are more concerned about how many people you can get to sign up - I would run the other way. I would suggest that you read the "MLM Legality Test", you can find a link to the blog in my profile here on answers. Are you crazy to consider MLM? No ... I'd just do some homework first.... And trust me, if the company is on the up and up they better be more concerned about the product than recruiting. And it is NOT about buying product and hording it to make commissions. I think you are comparing newer companies with the horror stories of past Amway reps. (I apologize for the reference)... I would not just jump in blindly on someone's word. I wrote a blog on advice for working from home. You can find a link to it on my profile also. It's not a commercial, just straight information on how to search, what to look for, things to run from, etc...... Many people make very good money in MLM and it''s not just recruiting. ~ ~jennifer Helping others create income from home through education of the system and how it really works.
7. Are there products offered? If so, it is not a pyramid scheme. A pyramid, or ponzi scheme is where there is investment involved, but no product. In that case, it is illegal and needs to be reported to the authorities. But, if there is an actual, quality product being promoted for a reasonable cost, then it is NOT an illegal pyramid scheme and is simply a way to market products. Network marketing is a viable business opportunity, but it is never as easy as most people make it sound. It takes time, money, and real work to be successful, as most that you will get to sign up will not sign up a single other person. And signing up 3 people? Baloney. You will need to sign up 3 dozen, or more, before you start to see a result. It can be done, and it can be done without a single one of "those meetings" which are more of a religious experience than a real business meeting. It does take someone who wants to build a true business, who wants a business arrangement with the network marketing company (as opposed to a starry eyed infatuation) and who has the time and is willing to put in the money and effort needed. So no, you are not crazy or unethical. If this is something you are interested in, please research how the industry works, its strong points and faults, then research the specific company you are interested in. If it sounds like a fit to you, go for it! As businesses go, generally you do not need to invest too much into a network marketing opportunity to experiment with it.
8. Not all companies are created equally. Network marketing is a viable business option. The concept is to simply cut out the middlemen, like the advertisers and retailers, and compensate the consultants with that money. Its a really good business model, but the key is to find a company that offers product that you actually beleive in. A pyramid scheme is one where there is no product being sold, or the product is worthless. BUT, there are PLENTY of network marketing companies that simply provide high-quality products through word of mouth advertising, through the consultants. You HAVE to be self motivated, because you will be setting your own schedules and deadlines. You also have to have a passion for the product. Be choosy, but keep an open mind! There are some bad companies out there, YES, but that is not limited to network marketing! There are some corrupt traditional companies, too!
9. Why do no mlmers ever talk about what Marcello brought up? His math lesson is exactly why mlm always fails. Eventually it hits a point where there are too many reps, then the reps at the bottom can't earn any money so they quit. Then the reps above them quit, then it eventually all implodes. It ALWAYS happens. Everyone on this site that is pro mlm, will be out of mlm in 5 years. Max, and you will finally realise why. Mlm is set up to fail. Sorry.
10. Network Marketing is not the business for you, but not because of all the reasons you listed or because of what the people have said in here. Their lack of education about network marketing still astounds me. But the reason I say it's not for you is because you had to ask. If you were offered a business proposal to look over and had all these pre-conceived notions about it, then it's not for you. You say you know it has nothing to do with the products offered....how do you know this? I have never seen a business venture work that didn't have an outstanding product that their sales force believes can help others. You say it's a pyramid scheme, which tells me that you really don't know what a pyramid scheme is. Wal-Mart, Walgreen's and every other store you shop at is a pyramid scheme. Do the salespeople earn as much as the manager or the owner? No. They are on a fixed salary which is much lower than the people above them and even if they worked around the clock, they could never earn as much as the people at the top. THAT is a pyramid scheme. Even the U.S. Army is run as a pyramid. Even suggesting that you might be crazy or unethical should tell you that it's not for you. You would never be able to sell the products because you have too many negative beliefs about the entire concept and believe me, that would come shining through to your customers. As a marketer, you must first be able to see the whole picture, believe that you can earn unlimited income at it...believe in your product... learn from others who are not only successful, but hard-working, honest citizens who are just doing their job. Just like any other job....the difference being, network marketers have a clear understanding of leverage and residual income. Something you can never earn in any job. So, best of luck with your ventures