- Home
- Blog
- Know The Difference Between A Pyramid Scheme And MLM
RECENT POSTS
- Benefits of Adiliv 60Tab:Buy Adiliv 60Tab Online
- Discover the Benefits of Dayjoy Adicardial 120 Tablets
- Adila Forte Tablets: The Ultimate Solution for Enhanced Wellness
- Adilipo 120 Tablets: The Ultimate Solution for Blood Circulation and Cardio Health
- The Power of Adicardial Syrup: Your Comprehensive Guide to Better Health
- Asthprash: An Effective Ayurvedic Product for Cleaning Lungs from Poisonous TAR and Air Pollution
- The Future of Direct Selling Industry in 2024-25: Trends, Innovations & Growth Opportunities
- How To Choose Personal Care Products Wisely? See this guide
- Do’s and Don'ts of Network Marketing
- Advantages of Network Marketing
- 7 Tips to Overcome Fears about Marketing and sharing your direct sales business with others
- How to succeed in network marketing fast
- How to Earn Money Without Investment
- How to find and attract more customers to your direct sales business in 2023
- Direct Selling industry trends for 2022–2023
- How to make jaljeera drink at home
- Sea Buckthorn Juice Uses and Benefits | Dayjoy
- What Is Warm Market Prospecting And How Can You Benefit From It
- How to Choose Great Tasting Instant Coffee Powder
- Affiliate Marketing Vs. MLM – A Comparison
- What Is the Difference Between Traditional Business and Multilevel Marketing
- 5 MLM Tips to Prevent Networking Failures and Achieve Success
- 5 Secrets To Boost Your Confidence For Success
- The Perfect Diwali Care Package With Diwali Gift Happiness To Someone
- Top Key Trends In MLM Industry in 2021
- Network Marketing Success Vetted Strategies to Meet Goals
- Comparison Between Matrix, Binary, And Unilevel MLM Plan
- Dayjoy’s Second Year Anniversary Celebration Two Grateful Years of Business
- Dayjoy's Treat For Tea Lovers Complete Range Of Healthy Tea Mixes
- Unilevel MLM Everything You Need to Know
- 4 Biggest Network Marketing Myths That You Need to Know Right Away!
- Astheal Cough Syrup Nature's Protection Against Congestion
- Give Your Liver The Ease Of Health And Regeneration With LivEase
- Envision Your Home With Dayjoy Three Brands To Redefine How You Live
- Top Daily Marketing Routines By Professionals to Boost Your Direct Selling Business!
- 3 Amazing Personal Benefits Of A Direct Selling Business
- Strategies And Plans That Are Currently Working In The Network Marketing World
- Direct Selling The Business Model Of The Future
- Network Marketing Tips For Success In A Post-COVID World
- Multi-Level Marketing Team Building Strategies
- Dayjoy Suraksha Kavach Keeping You Safe From Harmful Virus And Bacteria
- Key Factors to Build Strong Customer Relationship for Your MLM Business Success
- Major Mistakes Every New Network Marketer Should Be Aware Of
- 5 Marketing Tips to Sell Your MLM Products Smartly
- Dayjoy Wild Muse Range Of Products Goodness Of Nature For Complete Rejuvenation
- How To Make Network Marketing Your Full-Time Gig
- Curind By Dayjoy Powered By Nature For Your Health
- Asthprash Your All-Weather Ayurvedic Friend
- 2021- A Year Full Of Opportunities How You Can Make The Most Of It with MLM
- Dayjoy Line Of Products Natural, Organic, And Full Of Possibilities
- Job Loss During Pandemic Why Are People Considering Self Employment And You Should Too
- What to Do When You Feel Like Giving Up On Network Marketing
- 5 Secret Strategies to Grow Your Network Marketing Business
- Powerful Network Marketing Strategies for Pros
- 6 Effective and Working Tips To Help You Grow Your MLM Business From Your Home Pandemic Or Not
- Mistakes To Avoid In MLM Know What Experts Have To Say
- What Successful Entrepreneurs Want You To Know About Starting Your Own Business
- Networking Like A Pro Strategies To Help You Build Your Network
- MLM Insight How To Keep Your Remote Working Teams Productive
- Sales Pitch Mistakes That You Need To Avoid For Your Next Meeting
- Making The Most Out Of Your Time While Working From Home MLM Spotlight
- The Top Success Strategies In Network Marketing Used By The Pros
- 5 MLM Recruiting Techniques You Should Know For Rapid Team Growth
- How To Get Leads For Your MLM Business
- Preventing Failure In MLM Direct Selling Knowledge That Will Help You
- Prospecting On Social Media What you Must Know Before Trying
- 7 Skills That Will Ensure Your Success In Multi-Level Marketing
- 5 Advantages Of The Binary Compensation Plan In MLM
- How You Can Attract Customers To Your MLM Products
- The Rise of the Direct Selling Industry
- New Trends To Explore In The MLM industry
- Proven Methods of MLM That Guarantee Your Success
- Most Exciting Benefits Of Network Marketing
- Success Mantras of Successful Network Marketing Pros You Can Learn From
- Business Tips From Successful Businessmen That Apply To MLM
- Reasons Why You Should Join Network Marketing In 2023
- Why Listening Is Your Biggest Asset In Network Marketing
- 5 Network Marketing Basics You Need To Know To Rank Up Fast in 2023
- Lessons To Learn From Failure In MLM
- How to Find New Customers in MLM Marketing
- Know The Difference Between A Pyramid Scheme And MLM
- 7 Ways To Promote Your MLM Using Social Media
- MLM Marketing Plan
- How to Automate Your Network Marketing
- Key Habits Of Successful Network Marketers Around The World
- How Thinking Out-Of-The-Box Can Help You Get Success In MLM
- Strategical Questions That Help In Training A Successful Network Marketing Team
- Best Tips And Strategies For Astounding Growth In MLM
CLOSE
RECENT POSTS
- Benefits of Adiliv 60Tab:Buy Adiliv 60Tab Online
- Discover the Benefits of Dayjoy Adicardial 120 Tablets
- Adila Forte Tablets: The Ultimate Solution for Enhanced Wellness
- Adilipo 120 Tablets: The Ultimate Solution for Blood Circulation and Cardio Health
- The Power of Adicardial Syrup: Your Comprehensive Guide to Better Health
- Asthprash: An Effective Ayurvedic Product for Cleaning Lungs from Poisonous TAR and Air Pollution
- The Future of Direct Selling Industry in 2024-25: Trends, Innovations & Growth Opportunities
- How To Choose Personal Care Products Wisely? See this guide
- Do’s and Don'ts of Network Marketing
- Advantages of Network Marketing
- 7 Tips to Overcome Fears about Marketing and sharing your direct sales business with others
- How to succeed in network marketing fast
- How to Earn Money Without Investment
- How to find and attract more customers to your direct sales business in 2023
- Direct Selling industry trends for 2022–2023
- How to make jaljeera drink at home
- Sea Buckthorn Juice Uses and Benefits | Dayjoy
- What Is Warm Market Prospecting And How Can You Benefit From It
- How to Choose Great Tasting Instant Coffee Powder
- Affiliate Marketing Vs. MLM – A Comparison
- What Is the Difference Between Traditional Business and Multilevel Marketing
- 5 MLM Tips to Prevent Networking Failures and Achieve Success
- 5 Secrets To Boost Your Confidence For Success
- The Perfect Diwali Care Package With Diwali Gift Happiness To Someone
- Top Key Trends In MLM Industry in 2021
- Network Marketing Success Vetted Strategies to Meet Goals
- Comparison Between Matrix, Binary, And Unilevel MLM Plan
- Dayjoy’s Second Year Anniversary Celebration Two Grateful Years of Business
- Dayjoy's Treat For Tea Lovers Complete Range Of Healthy Tea Mixes
- Unilevel MLM Everything You Need to Know
- 4 Biggest Network Marketing Myths That You Need to Know Right Away!
- Astheal Cough Syrup Nature's Protection Against Congestion
- Give Your Liver The Ease Of Health And Regeneration With LivEase
- Envision Your Home With Dayjoy Three Brands To Redefine How You Live
- Top Daily Marketing Routines By Professionals to Boost Your Direct Selling Business!
- 3 Amazing Personal Benefits Of A Direct Selling Business
- Strategies And Plans That Are Currently Working In The Network Marketing World
- Direct Selling The Business Model Of The Future
- Network Marketing Tips For Success In A Post-COVID World
- Multi-Level Marketing Team Building Strategies
- Dayjoy Suraksha Kavach Keeping You Safe From Harmful Virus And Bacteria
- Key Factors to Build Strong Customer Relationship for Your MLM Business Success
- Major Mistakes Every New Network Marketer Should Be Aware Of
- 5 Marketing Tips to Sell Your MLM Products Smartly
- Dayjoy Wild Muse Range Of Products Goodness Of Nature For Complete Rejuvenation
- How To Make Network Marketing Your Full-Time Gig
- Curind By Dayjoy Powered By Nature For Your Health
- Asthprash Your All-Weather Ayurvedic Friend
- 2021- A Year Full Of Opportunities How You Can Make The Most Of It with MLM
- Dayjoy Line Of Products Natural, Organic, And Full Of Possibilities
- Job Loss During Pandemic Why Are People Considering Self Employment And You Should Too
- What to Do When You Feel Like Giving Up On Network Marketing
- 5 Secret Strategies to Grow Your Network Marketing Business
- Powerful Network Marketing Strategies for Pros
- 6 Effective and Working Tips To Help You Grow Your MLM Business From Your Home Pandemic Or Not
- Mistakes To Avoid In MLM Know What Experts Have To Say
- What Successful Entrepreneurs Want You To Know About Starting Your Own Business
- Networking Like A Pro Strategies To Help You Build Your Network
- MLM Insight How To Keep Your Remote Working Teams Productive
- Sales Pitch Mistakes That You Need To Avoid For Your Next Meeting
- Making The Most Out Of Your Time While Working From Home MLM Spotlight
- The Top Success Strategies In Network Marketing Used By The Pros
- 5 MLM Recruiting Techniques You Should Know For Rapid Team Growth
- How To Get Leads For Your MLM Business
- Preventing Failure In MLM Direct Selling Knowledge That Will Help You
- Prospecting On Social Media What you Must Know Before Trying
- 7 Skills That Will Ensure Your Success In Multi-Level Marketing
- 5 Advantages Of The Binary Compensation Plan In MLM
- How You Can Attract Customers To Your MLM Products
- The Rise of the Direct Selling Industry
- New Trends To Explore In The MLM industry
- Proven Methods of MLM That Guarantee Your Success
- Most Exciting Benefits Of Network Marketing
- Success Mantras of Successful Network Marketing Pros You Can Learn From
- Business Tips From Successful Businessmen That Apply To MLM
- Reasons Why You Should Join Network Marketing In 2023
- Why Listening Is Your Biggest Asset In Network Marketing
- 5 Network Marketing Basics You Need To Know To Rank Up Fast in 2023
- Lessons To Learn From Failure In MLM
- How to Find New Customers in MLM Marketing
- Know The Difference Between A Pyramid Scheme And MLM
- 7 Ways To Promote Your MLM Using Social Media
- MLM Marketing Plan
- How to Automate Your Network Marketing
- Key Habits Of Successful Network Marketers Around The World
- How Thinking Out-Of-The-Box Can Help You Get Success In MLM
- Strategical Questions That Help In Training A Successful Network Marketing Team
- Best Tips And Strategies For Astounding Growth In MLM
Know The Difference Between A Pyramid Scheme And MLM
For years people have been confusing multi-level marketing or MLM with Pyramid Schemes, even though the 2 are on absolutely opposite ends of the spectrum. This confusion between the two has often resulted in people joining all the wrong sorts of pyramid schemes to lose their money, or in people not believing legitimate and highly profitable MLM plans, and thus losing the opportunity to make a good amount of money.
However, the real question is, how come this confusion is still prevalent in the age of the internet? And what is the difference between MLM and Pyramid schemes? Are they the same thing? If not, how does one even identify which is which, and how to avoid the bad one? All of these questions have answers that this blog will try to address in the most thorough manner possible.
What Is MLM?
A multi-level marketing effort or MLM is a network of individuals directly selling products directly to the public. The main aim of MLM is to increase the sales force by recruiting newer faces and increasing the overall reach of the company.
The representatives and promoters get a small commission out of their sales, as well as a small compensation for recruiting more members. It is a structured and legal way of business that promises real products and real benefits to the consumers and to the sales representatives.
What is a Pyramid Scheme?
A pyramid scheme is a fraudulent cycle or scam where people are recruited under the false promise of top-notch products and highly luxurious benefits. These people are then encouraged to recruit more people to the scheme in order to ‘win’ additional benefits and high rewards in a rather short period of time.
This is done by encouraging the representatives to recruit more and more people, with no sort of products involved.
MLM vs Pyramid Scheme
Needless to say, Pyramid schemes are illegal as they are basically just scams that disguise themselves as Multi-Level Marketing Programs. There are no real products involved with no real benefits or any kind of compensation planned for the participants.
In MLM, the profit comes through recruitment and through selling products. However, pyramid schemes only rely upon recruiting people and charging them a joining fee.
Because there is no tangible product being sold, there is always an easy way to tell one from the other. This is because pyramid schemes only work on getting your money out of you and encourage you to recruit more distributors. MLM, on the other hand, works on the principle of moving the products. With more distributors, the company will sell more products.
How to Recognise and Avoid a Pyramid Scheme?
Whenever you are pitched the idea of an MLM, ask yourself a few of these questions to understand whether you are face to face with the real deal or a Ponzi scheme.
● How big is the investment? Considerably large investments are a sure sign of pyramid schemes as MLM usually does not have huge start-up funds.
● Does the company buy back inventory, especially when you paid for it? Legitimate MLM companies always give you the option of buying back the leftover inventory at about 80% of the value.
● Is there any focus or attention on the market? MLM companies are based on moving products, and that is why they focus on setting up a market. If they are not serious about that, you must not be serious about them either.
● Does the company emphasize more on recruitment or selling? Pyramid schemes focus on making fast money through recruitment. If that is all the talk that you hear, run in the opposite direction.
● Is the plan more about making money through recruitment instead of the sales that ‘you’ make? It is a signature pyramid scheme.
Do your research before you make a decision. Going into the past records and legal certifications of a company is important as that allows you to gather more information about their legitimacy. Talk to people who are involved or know about the field. Most importantly, listen carefully to the claims that they make. Highly inflated claims are the biggest telltale signs of a Ponzi pyramid scheme.
Being a part of a successful Multi-Level Marketing business is a fun and learning experience where you earn huge benefits from the work that you do. But pyramid schemes take the fun out by ruining the name of MLM. This is why Dayjoy, ranked in India’s top MLM company list, carries all the important legal information about the legitimacy of the work that we do, alongside offering FSSAI-approved products to our consumers. To join Dayjoy’s MLM effort, get in touch with our experts today.
Read More: How to Automate Your Network Marketing
For the latest Update visit our Instagram page