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MLM Vs Pyramid Schemes

Posted on the 15 January 2013 by Mankam23

This is one topic that I really like, so I decided to write a post about it. The reason why I like it is because it's a very complex subjects and often times people get it very wrong, some beleive it's they are same. I know many of you, including myself have come across this kind of business where you were being told that you have to recruit X or Y number of people before yoou earn a dime. Am I right? Opinions are so divided on those two subjects , that people even wonder if they are legitimate.

People have so countless times been abused that, they now think all of this is a complete scam. There are some good and bad one but you must be able to recognize one when it slaps you in the face. A bit more of that to follow…

What's Pyramid Scheme?

Actually both business strategies have been around for ages and used to really work But with economics downfalls, they have since become a bigger threat to everybody. With Pyramid Schemes growing every day, it has made people wary of actually participating in good


A Pyramid Scheme is a business model that promises participants payments after they have enrolled other people into the scheme. Pyramid Schemes often come in disguise but they have one thing in common: they always collapse and people often loose their money, time and effort. Looking at the picture, some of you might recognize what I'm talking about here because that's how a pyramid scheme looks like.

What is Network Marketing (MLM)?

MLM or Multi-Level Marketing is a business formula where businesses choose to sell their products through the word of mouth. Can you see the difference already? We are coming there, just relax and follow me….

This marketing stratey allows people to reffer their contacts (friends, family, co-workers, etc) to the company so they can take advantage of the opportunity by selling the products and earning some money, hence the words Downlines.

A Downline is the person you reffer to a certain business, so in other words, you present the opportunity to someone, he/she is interested by the products and decides to sign up and promote/sell the same products to earn extra money. Hope this is clear so far.

We all know how expensive are media advertisements, so instead of paying media companies to do the work, companies choose to reward people for their efforts and good work.

MLM formulas does not oblige one to recruit. You can do if you like but it's not an obligation to do so. One of those companies is More about that later. The company focuses more on products/service distribution and pays the commissions you deserve, you are actually rewarded for your work.

Difference between MLM and Pyramid Schemes

The difference between the two is so clear that even the blind can see . MLM has a product/service to offer, where as Pyramid relies solely on new recruits. In MLM you sell the products or advertise the service and you earn money. If you are lucky enough to have downlines, then you get some more commissions based on the MLM plan. Pyramid equals no recruits no money, as simple as that.

Some people are not very good at selling, so instead of selling, they join a MLM structure, focus on recruits(distributors) only and still make money through the group's combined effort.

I personally joined a few MLM programs and I'm very happy with them. Those are: which is actually Free to join at the moment and the other one is the one cited above

NB: I know some people want to earn a lot of money and quick. This is not a Get Rich Quick kind of thing, no sales involve but you must do some work everyday to get pay. I'll come back to that in a bit.

Below, I braked it down into a little chart to help you decide in the future and hopefully this will help:

    MLM Pyramid Schemes

Business Objectives sales of products and services Concentrate on new recruits/prospects

Start-up Costs Low, affordable and in some cases free Membership fees must be paid upfront

Products on Offer household goods/services. Advertising campaigns or day-to-day products Often too expensive and poorly made,sometimes inexistant

Sales Info Clear information about the work involved and no pressure Get Rich Quick in no time.really?

Customer Support Always available to help and a detailed marketing material is always provided to get you going None and they often dissapear when things turn nasty. Money wasted!

Your Profit It's based solely on your effort and that of your team if you decide to recruit. Null

Duration Likely to last few years based on customer demand Collapse is imminent


Conclusion Legal Business Opportunity Waste of your time, effort and hard earn cash

After a clear observation of this little chart, I'm sure many won't get scammed again and will make the ultimate choice.

The Project LBM ( aka

This is a legitimate MLM marketing business and does not requiere you to recruit if you do not want to. It aim is to help huge compagnies advertise their products and this is where you and I come into action.

All that is required here is to fill up advertisement forms every single day Monday- Friday (weekends are closed) and those advertisement forms are called Markers.

The marketing marker (hereinafter the Marker) is the research of the consumer preferences by the marks method. It is the questionnaire thanks to which the analysis of the choice of those or other properties of a product which is carried out by the consumers.

On the other hand, the Marker is advertising which has target group. The advertiser knows in advance how many people will see this advertising, that's why its efficiency is 10 times more than advertising in the mass-media and outdoor advertising.

In the international practice the leading companies allocate on the average 40 % of the income on marker advertising. As the experiment shows, advertising starts to "work" after 4-5 viewings. High-grade "work" of advertising "activate" from 21 repetitions.

NB: As I explained earlier, you can earn money both ways here. There are two options:

  • you can choose not to recruit anyone and work solely on your account, it's up to you. The more makers you mark, the more more you earn.
  • else you can also decide to share the opportunity with whoever you wish. That way you earn on your personal efforts and on that of your entire group. We all know Donald Trump right? This is what he Said: “If I lost everything and had to start again, I would find myself a great network marketing company and get to work!”- Donald Trump

The ADDWallet ( a bit similar to the LBM though different but in the same category: Advertisement. Here your role is to help the company promote their products everyday and you get pay for it.

All you have to do is to place adverts in places of your choice and send the records back to the company so they can track your work. You can join ADDWallet Now just by clicking on the link above. It's Free

NB: None of these two are Get Rich Quick, so be prepared to work a little bit before you earn some money and you must not recruit in any of them if you do not want to. With ADDWallet, there are Conference Calls going on regularly, sign up and you will receive an email and code for the next conference room.

“I would rather earn 1% of 100 people’s efforts than 100% of my own efforts”- John Paul Getty

My advice to any one looking for a home business will be to take the time, be careful and choose the right one. Please feel free to email me if you are interested in any of those  above. You can also contact me on Twitter (make-this-real) or Facebook, or simply post a comment on this post and I'll respond asap. Good Luck

Get Rich Quick does not exist unless you are lucky enough to win the Lottery, hard work pays and makes you proud of your achievements…

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