How Network Marketing Differs From A Pyramid Scheme

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How Network Marketing Differs From A Pyramid Scheme
How Network Marketing Differs From A Pyramid Scheme

Video: How Network Marketing Differs From A Pyramid Scheme

Video: How Network Marketing Differs From A Pyramid Scheme
Video: Multi-Level Marketing vs Pyramid Scheme: What's the Difference? 2024, December
Anonim

Everyday communication with people is initially aimed at obtaining information. This is how a person is made. But do not forget that in the process of transmitting this very information, we also absorb the emotions of the one who speaks to us. And on a subconscious level, the new concept is likely to be associated with the one from whom it was first heard.

How network marketing differs from a pyramid scheme
How network marketing differs from a pyramid scheme

What is a pyramid

It was on this principle that all financial pyramids were built. The organizers of the scam enthusiastically told people about the amazing possibilities, promised the fulfillment of the most daring aspirations, unprecedented profits. The first investors (mostly financially illiterate) picked up these emotions and passed them on to their interlocutors.

But now the financial pyramids have collapsed (and this inevitably happens if the organization is based only on the recruitment of new members), and it is not difficult to guess what emotions filled people who were left not only without the promised profits, but also without savings, with mortgaged apartments, with huge debts and loans.

Therefore, today people are afraid of the pyramid, as they say, more than the devil. Moreover, the definition of "financial" was lost in the process as unnecessary. Dislike all pyramids. Meanwhile, any organization is built on the principle of a pyramid: states, banks, factories, schools. For example - a school: at the head of the school is one director (top of the pyramid), then a couple of deputies, teachers, service and technical personnel, students (base). Moreover, all links are important and functional, but especially the top and the bottom: without a head, anarchy sets in, and without students, this organization is not able to work, since it is meaningless.

It is because of the lack of an influx of new investors (foundations) that financial pyramids disappear, since the remuneration of earlier links is carried out only at the expense of new ones. Simply put, there is not enough money for everyone.

The difference between an organizational pyramid and a financial one

What is the difference between an organizational pyramid and a financial one? The availability of money, goods or services presented in return, and the cost of the latter is adequate to their quality. After all, school education is conditionally free, the state simply pays, even in the school organization there is a relationship between money and goods (service).

Therefore, if you want to determine if a financial pyramid is another network company, pay attention to the two conditions listed above: the availability of the provided product (service), the adequacy of its (its) value. Are these conditions met? This is network marketing. No? Financial pyramid.

And the last point: it happens that financial pyramids try to disguise themselves as network marketing, assuring you of the availability of goods (for example, a disc with some kind of training program, of course, not licensed anywhere). Be careful. This "product" is meaningless, since there is no need to redeem a unique copy - it can be multiplied.

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