Multi-Level Marketing And Network Marketing - How To recognize Illegal Pyramid Or Ponzi scheme

There are a tons of population that want to get rich fast, and they will do whatever (and believe anything) to get rich. That is where the multi level marketing and networking schemes come into play. The two main types of schemes out here are the pyramid schemes and the Ponzi schemes. A Ponzi project is, of course, a fraudulent investment operation. Pretty much it involves paying very high prices to investors out of the money they get from other investors.

Of course, the Ponzi project is just someone else pyramid scheme. A pyramid project is pretty much where you pay high dollar for the rights to sell a stock that is not worth the money. Then you get population under you to sell that stock as well. These schemes fall apart as population run out of population to shop their fake stock to.

The Food Pyramid

So how do you avoid these scams? How do you know what is a real opportunity, and what is just an illegal scheme? A good way to be able to tell a pyramid project when you see one is to look at its company model. A lot of time these schemes have a non sustainable company model. That is because these models sometimes call for more population than there are in the world. So that would be impossible to have that many population selling the product. It's important to keep in mind that these schemes are illegal in most countries.

Another way that you know if it's a pyramid project is if you are not no ifs ands or buts selling a product. A lot of times these schemes take either a very cheap made stock or a stock that does not even exist, and they shop it to people. The only way that the project stays alive is if the population that they shop to, markets the stock to other population as well. The only population that no ifs ands or buts make any money off these schemes are the population at the very top of the pyramid. So if you never no ifs ands or buts get to see the stock you are marketing or trying to enroll population in, then it's more than likely a scam. Remember, these pyramid schemes only work, because you enroll other population that are willing to give you money to start selling what you are selling (which is no ifs ands or buts nothing).

There are some legit ways to make money out there, but these pyramid schemes are not one of them. So be sure to explore whatever you are mental about joining first. Make sure that it's legit before you get involved. The last thing that you want to do is get complicated with an illegal pyramid scheme.

I often do get asked how to start a profitable internet business. I would say that the best way to make money online if by finding a niche and originate a stock or assistance colse to that niche. That way, at least, you are sure to have person interested about whatever you are selling.

To Your Success!

Multi-Level Marketing And Network Marketing - How To recognize Illegal Pyramid Or Ponzi scheme