5 Differences between MLM’s & Pyramid Schemes

There are major differences between a scheming way of making money and a legit business. It is important while you search for the right MLM company that you know the difference so that you can make a good and right choice for you. There are 5 differences between MLM’s and Pyramid Schemes that I am going to share so  you know what you are looking at And will help you make the best business decision for your situation.

  1. MLM’ s sell real products and Pyramid schemes do not. In fact, pyramid schemes don’t have any kind of real tangible products.
  2. MLM’s don’t pay one business owner for bringing in a new business owner, also known as an IBO, although they may pay a percentage of the new IBO’s sales to the recruiting IBO.
  3. Even though most MLM’s have a certain quotas you have to sell in a certain amount of time, the amount is generally low and it is  usually met by your own purchases but you can meet it by just personal sales. Pyramid Schemes don’t have quotas of sales because they are not selling anything tangible. They do have quotas of necessary recruitment by each member.
  4. In MLM’s you can build a team to maximize your earning potential. In pyramids the only way to earn money is by recruiting so it is a must.
  5. In MLM’s the more you build a team and hit certain level of group sales, the higher percentage you earn in management level. There are plenty of perks for each level also . In pyramids the same amount is paid each time you recruit and generally that amount doesn’t’ change. If there are program perks within the pyramid, they are usually really difficult to achieve.

So, as you look into ways to supplement your income, be sure to check out some of the many MLM’s. I think you will agree that there are some great products and companies out there and it’s fun to be apart of a team.fun ones. I hope these 5 differences between MLM’s and pyramid schemes help you in your search.

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