Many People Confuse Network Marketing And Pyramid System

by Vitor Ferreira on

in Network Marketing

The Differences Between Network Marketing And Pyramid

Network Marketing

Network Marketing is a distribution system or a form of marketing that drives legitimate goods and services with commercial value, directly from the manufacturer to the consumer through a network of independent distributors.

The shape: There are major distributors and attacked mediating the manufacturer of the product and the consumer.


The only intermediary is the independent distributor that is an individual not employed by the company.Network Marketing


And it increases the profit margin of the company as well as reduce distribution costs due to the absence of intermediaries, advertising spending is reduced as the company’s independent distributors charge to promote the products and brand.


And also the lack of employment, ie, formal reduces the number of employees needed to run the company being well over a factor of cost reduction.


And with all these factors reducing distribution costs and independent distributors bearing all the responsibilities described above, a portion of the company’s profit is returned to its distributors.


The Entrepreneur Network Marketing works as a standalone business, and represents a particular company running your marketing plan, promoting your product or service and the business opportunity offered by the company, as well as being responsible for training new recruits.

It’s a job that involves speaking with people and creating relationships. Network Marketing


How To work Network Marketing Compared Pyramid System 

Network Marketing is characterized by moving consumer goods or services.Network Marketing

Already marketing pyramid moves only capital distributors, with no exchange of benefits.


On the other hand, Network Marketing is totally legal in almost all nations, including Brazil where it is widely reported by the Brazilian Association of Direct Sales, through a committee only for active2.


According to Robert Kiyosaki in his book “We Want What You Get Rich” (Editora Campus), a Network Marketing is the exact opposite of a pyramid, it is made to take you to the top, and not keep it in the base .


  •     What is a pyramid scheme?

First of all, these schemes are ilegais.E the main root of all these illegal schemes is to take advantage of people.

Pyramid schemes are strictly a money game with (usually) no product involved.

You have to be careful though – modern pyramid schemes may have a product.


If the company you are researching involves the exchange of money primarily for enrolling people in another company without a legitimate product or service being delivered, then you

need to immediately run the other way.

And so this kind of business model does not work because eventually the number of new recruits fails to sustain the payment structure and the system collapses with most people losing money to a person to make money in a pyramid scheme , someone else has to lose money.

With no real products or services involved – just money changing hands, then you have a pyramid scheme.Network Marketing

See this message left by ROBERT KIYOSAK

“If I had it to do all over again, rather than build an old style type of business, I would have started building a network marketing business.” – Robert T. Kiyosaki, Entrepreneur and Author. Network Marketing

Network Marketing

Have a fantastic day,

Vitor Ferreira


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