As the cost of living continues to increase, people have resulted in seeking new possibilities. Whether it be taking on a second job or looking to start their own business. Either way entrepreneurs are on the rise, so let’s evaluate the business opportunities available.
Looking to become a part of the entrepreneur revolution? Then it’s important to understand the difference between a network marketing company and a pyramid scheme. With so many new opportunities available, it is important to know how to spot a pyramid scheme when you see one.
Network marketing is often a misunderstood form of business. The organisational structure of a network marketing business leads many people to incorrectly believe that it is a pyramid scheme. However a organisational structure does not determine a pyramid scheme. As you can see many organisational structures come in the form of a pyramid.
The difference between a pyramid scheme and a network marketing company;
A network marketing company provides an actual product or service whereas pyramid schemes do not and only funnel the money up from recruitment costs.
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme. Instead of supplying investments or sale of products. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit. As such, pyramid schemes are unsustainable and often illegal.
What is network marketing?
Network marketing is when you become a representative for a company. Network marketing opportunities vary greatly, so no matter what your interests are you can probably find a network marketing opportunity that fits your personality.
The real selling point for network marketing is that representatives can make money in two different ways. The first way to make money is the money made from commissions from direct selling to consumers. The second way to make money is from the commissions made from sales of the representatives in your structure.
Advantages of Network Marketing
There are many advantages to network marketing, and here are the top 3:
Low cost entry and little risk
For starters, network marketing allows you the flexibility you experience when running your own business. But – you don’t have to dream up an amazing product, borrow money to rent an office or hire employees.
Impressive Income potential
There are millions of people in network marketing around the world, with many achieving financial freedom often in just a few years. You have to be willing to put in the hard work, and ensure you sign up with the right company. Achieve those then you can begin creating a lucrative business and financial security for yourself as well.
Training is provided
Pretty much any reputable company that has a network marketing program will also offer new recruits training. Generally, as a representative you should have access to state-of-the-art management systems, merchandising, and marketing tools. If you see a network marketing opportunity where they don’t mention any kind of training, it might actually be a scam business.
With the rise of the internet and social media, network marketing has grown into booming businesses. Chances are pretty good that you’ve already been approached by somebody about network marketing and didn’t even know what it was called. You might have thought it sounded too good to be true, but network marketing for the right company can be a very lucrative home-based business.