Jan
I have heard of a new business, which is operating as a "NETWORK MARKETING CONCEPT". Do these NETWORKS & NETWORKERS exist. What is the different between Network Marketing & Pyramid schemes. If this all processes are going to crash one day, please explain me how.
Answer:
Network marketing/MLM is 70 yrs old concept and its usd 109 billion turnover industry. In network marketing volume is generated by each distributor by buying actual products like soaps, shampoos, food supplements, cosmetics, fmcg etc on monthly turnover basis.
In Pyramid schemes there is no actual products and the joining fees is moved between the people.Pyramid selling is a fraud. It is a mechanism by which promoters of so called "investment" or "trading" schemes enrich themselves in a geometric progression through the payments made by recruits to such schemes. Related deceitful schemes have been described in various international jurisdictions as "chain letters", "snow balls", "chain selling", "money games", "referral selling" and "investment lotteries". Numerous legislatures around the globe have prescribed pyramid selling. The wording of relevant statutes, codes, articles, acts, regulations and the like vary, but all contain the following core concept :
A pyramid is a scheme in which a recruit pays a high entry fee with no sales of goods for the opportunity to receive future benefits (money or privileges) which are primarily derived from that recruit's (and/or subsequent recruits) introduction of additional participants in the scheme, rather than from the bonafide sale of products by the recruits (or subsequent recruits) to consumers. Thus, the scheme's rewards effectively come from the addition of new participants and their investments, not from the sale and distribution of real products to persons who actually use or consume them. No substantial trading in viable goods or services takes place, and the scheme essentially involves an internal redistribution of wealth from new entrants to the promoters. Direct Selling Association does not admit pyramid sales companies into its membership and will support any legislation that the government plans to bring against it.
Network marketing in not going crash till the human population is growing and cease to exists.
http://www.mlm.com
http://www.indiandsa.co.in
http://www.dsa.com
http:///wfdsa.org
for more details contact at pawanbhalla272001@yahoo.co.in or pm me
Answer:
PROS:
Yes they do exist and yes they are great when done the right way.
Called MLM and its a way of paying people to get YOU more people! Its a way of increasing your chances of getting popular / well known. Without it youre struggling I d say.
I suppose thtas how eBay started off really before they got rid of the MLM system because I suppose they dont need it no more - look at where they are now!
CONS:
If people who are recruited in system are not getting people, the business fails just a little to get known thats why you need to recruit load of people just in case a few get lazy to get the site known.
Answer:
Network marketing works and people are drawn by the sales pitch about big money and no work. However, people realize quick that it is alot of hours with very little pay.
Multi-level marketing (MLM) also referred to as Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.
Independent unsalaried salespeople of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organisations). Independent distributors develop their organisation by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organisation. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.
Distributors earn a commission based on the sales efforts of their organisation, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.
From Wikipedia
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