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Is this a pyramid? | ||
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There
are many ways of addressing this answer. First and foremost, however,
the answer is NO. Network
Marketing is NOT a pyramid. Otherwise, you wouldn't have
many of the most successful Fortune 500 companies working with the
Network Marketing industry. The
Federal Trade Commission (FTC) recognizes Network Marketing as a
proven, legitimate method of distributing products and services
directly to end-users, whereby individuals are compensated for developing
"distribution channels," through which their products and services
flow. Instead of a company allocating money towards traditional
advertising, their representatives become their word-of-mouth advertisers
and get paid for bringing business to their company. Also,
in a "pyramid," the person at the top always makes the most money,
and money is only created when individuals sign up. In a legitimate
Network Marketing company, it's the people who are most productive
who earn the most, no matter where they're positioned or when they
join. Anyone can advance to the top levels and earn more money than
those above them in the network, if they put in the appropriate
work. On
another level, one could say that structurally, all successful businesses
are pyramids. The difference between a "corporate pyramid" and Network
Marketing is that corporations use the principal of leverage to
increase profits, with the goal of making the people at the top
of their "corporate pyramid" rich. Network
Marketing puts the power of leverage into the hands of individuals,
with the goal of pulling them up to the top. |
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