As we have shown you in past articles, one of many ways to get passive income and having a chance at achieving the desired financial freedom, is forming a marketing network. You may have heard of similar terms such as multi-level business, known by its abbreviation MLM (Multi-Level Marketing).
However, many people perceive this type of business in a wrong way with pyramidal structures, making them move away from this entrepreneurial opportunity.
Despite the confusion, this strategy has been receiving a lot of interest recently throughout the world … Why? Because, it allows people to earn income in a reasonable amount of time without making large investments.
Therefore, we will show you details so that you can learn to differentiate between a multi-level business and a pyramid. So, let’s explain from the beginning.
What is the multi-level business?
A multi-level business consists of offering or promoting a product, good or service to several people. In turn, these people do the same with other people, forming a network of people who benefit from the payment of commissions as a result of their sales and the sales made by their members.
The Internet advantage of this form of business is that you can substantially extend your target audience so that you can make your business offer known to a large number of people, even beyond the country border. Expand and your chances will grow more quickly.
Like in all businesses, you have to open your eyes and recognize the signs of risk to avoid falling into the hands of unscrupulous people or those who seek to deceive by offering great wealth and leaving you disappointed in the end because they disguised a pyramid or ponzi schemes as a great opportunity for entrepreneurship.
To avoid investing your money in illegal companies, pay attention to these aspects:
- Real product: Make sure that the product they promote is real. It may be goods or services, but make sure that it is something beneficial for people and their needs. If the only mode of profit is attracting new people to invest, avoid that business because you could be falling victim to a pyramid.
- Satisfaction guarantee: Being in a multilevel company, you will always have the benefit of having a period of time in which you can request the return of your money if you consider that the products and / or services do not meet your expectations. While in a pyramid scheme, you will not have this possibility, because there is no actual product or service.
- Time in the market: Investigate different testimonies on the internet to make sure that it is a reliable program with several years in the market, as well as a simple and stable compensation plan (or benefits).
- Training plan: Another very important detail is that the system has a training plan to guide newcomers and show them strategies, as well as alternatives to learn to promote products to achieve the objectives.
Good multilevel businesses have a sponsor, which is usually who is above you in the network, to serve as a guide and help resolve your concerns. On the other hand, in a pyramid you will not have the option to learn new skills or knowledge and the people who presented you with the opportunity will most likely disappear after a while without leaving a trace.
These aspects will help you have bases of weight so that you can evaluate if the business offers you take are linked to the multilevel or pyramid style.
Of course, we suggest that you keep yourself informed so that you have all the possible tools to protect your money, but also so that you know how to take advantage of a great opportunity when it arrives at your door.