combines a fake yet seemingly credible business with a simple-
to-understand yet sophisticated-sounding money-making formula.
What does that mean?
Lets say that Mary pays a one time fee to join a company, then she
has to recruit other people into the business, who pay the one time
fee, in order for her to start earning money. Then they go on to
recruit others. As each new recruit pays the one time fee, Mary
gets a percentage of the payment.
Is there anything wrong with that?
Well, no if there is a product. Some of those companies rarely involves
a sale of a product where there is a money value attached. In this case
there is no end benefit. The money just moves up the chain.
In situations such as these, there are two questions that you should ask.
1. Would a logical thinking person buy that product or service if there
was not a business opportunuty attached?
2. Does the money stop when the recruting stops?
How is your comp plan set up?
Here is a Tip:The comp plan should give greater rewards for Retailing
than Recruiting.
Pyramid schemes, as currently defined by the Federal Trade
Commission (FTC) -- and in many state laws -- are plans which
1. "concentrate on the commissions you could earn just for recruiting
new distributors," and which
2. "generally ignore the marketing and selling of products and services."
In the classic Pyramid scheme, the money is made solely through
the recruitment of new distributors, with no product going
to the end consumer. This drives the behavoir of money passing
from one person to another with no value of product given in return.
All of these questions can be answered. Need help, Call or email me!!!
To Your Success
Marilyn Harbin
709 676 2916
