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Network Marketing Scam – the Truth Revealed

[ 0 ] May 16, 2010 |

Network Marketing Scam

Success is always copied by less than honest individuals who create businesses that aren’t reputable. As a result of those copycats, good opportunities often find themselves tainted by rumors and misinformation. A network marketing scam is otherwise known as a pyramid scheme and shouldn’t be confused with the term network marketing.

They’re as different as a house cat and a lion. One can bring you joy and keep you company, and the other will eat you for lunch. A pyramid scheme is basically an empty promise that if you’ll just fork over enough of your hard earned cash, you’re going to get filthy rich.

The way it works is that these scammers let you ‘invest’ with them. They give you money on your ‘investment’ in the beginning to keep you hooked and quiet. These scammers can give you money on your investment one of two ways. Either they’re giving you some of your own money back, or they’ve hooked someone else and are giving you part of their money.

Pyramid schemes can only stay in play as long as more ‘investors’ are suckered into giving them money. When they run out of ‘investors’ at the bottom to give to people who have been in the system for awhile, the entire thing collapses.

The name pyramid was chosen for these scams became the base must always be bigger to support the top. Now imagine if you invert a pyramid. That small point won’t hold that large base. This is the reason why all pyramids eventually fail.

Not only are these guys thieves who prey on the unsuspecting, but it’s an illegal practice and many have been susceptible to it. No one is above getting fooled – from the elderly living on a meager pension to the wealthy living in mansions. These schemes don’t offer any information, software or product. They don’t want you to do anything or sell anything. They only want your money.

True network marketing is not part of a network marketing scam. It’s a product or information that you can take to people in order to help them either make their life better or easier with it.

In networking, you can also take that same product or information and show others how to make money. This is building a relationship of people who want to earn an income but unlike a scam, it’s based on honesty and hard work.

You can easily spot a network marketing scam by asking yourself one question: Is there a product for me to sell (even if it’s a savings or digital information)? If the answer is no, then it’s probably a scam.

With network marketing, you won’t be asked to hand over large sums of money and get nothing in return and it won’t be a case of ‘don’t call us, we’ll call you.’  Do your research before you commit your money, but don’t let a network marketing scam keep you from joining a legitimate network marketing business. 

Magnetic Sponsoring

Magnetic Sponsoring

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