Secondly, and this is where the confusion with other programs such as MLM (multi level marketing schemes) or, as they are often known network systems. The confusion lies in the structure for how MLM is and is like a pyramid and therefore assume that most people assume that an MLM a pyramid scheme it is not that this article is a description of the two systems is to describe the difference.

So what is a pyramid scheme, it’s really simple it is, it usually prompts you to own your own business, either through the Internet or create your own social contacts with various products for sale, and these products could not do anything. The company will show you how to sell these products and keep all the profits they make and that you are over 30% in the price that you can buy it from them. They will also show how other people in the same industry, then upload them instead of selling the products themselves, it also invites you to do, but you will again be selling these products in your invites to an inflated price on the price that you paid for them. Whatever you have bought this also bought at a price inflated by you, the supplier, who in turn at a higher price, etc.

For example, a pyramid scheme normally includes the price of goods increased over and over again, the more it passes through various hands, at no time can the direct route back to buy them at the manufacturer of the goods from them, but as this make the rule. Fail A large number of these people will ask you to invest a large sum of money to be especially able to buy stock from them rather than buying the products, but if necessary, through the purchase of this stock is a “discount” is so that you sell more profit. Sometimes you will be asked to develop a membership fee could be this month or a year back pay for the payment for the longer maturities.

Finally, the product you have is so expensive that they never be able to sell them and of course the system is not for you and many others, and you lose all the money you spent.

The reason for the name of Pyramid scheme refers to the shape of this network of people, and the price difference between the tip of the pyramid, the one person that buys the stock and passes under it they will be many other people.

How does it differ from the MLM schemes?

The first point is that the price of the product changes, it will never matter whether you are in the top level or the lowest level are those costs that you should not be encouraged to buy products, then investments are minimal, you should not being asked to pay for the privilege of joining the MLM network, although some of the marketing tools you are like the finished site to buy, but they are not necessary, it must in most cases.

The simple basics of MLM, you are able to sell a product or multiple products for everyone, and sell what you will receive a commission for the sales, similar to the direct sales method is based. However, you can introduce other people into the business, which may also sell, but those products to the customers at the same PRICE AS YOU ARE to sell them, no price increase, in turn, the commission on sales, but you will also receive a commission on what they sell.

Of course there is a limit to how many people are in your network because the cost of the product paid by the manufacturer of this grid or matrix network system usually only 5 to 6 levels. On a basic 5×6 matrix mesh or network has the potential of more than 31,000 people in the network, all of which you earn a commission from.

If one of the points seem to be about the pyramid system similar to the business that you stay away from looking at it as, of course, people ask invest not describe, not the system when this article.

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