2 Major Differences Between MLM and Pyramid Marketing

People often confuse MLM (multi-level marketing) with pyramid marketing. However there is a very clear distinction between the two concepts. Both types of marketing inspires strong feelings in a great many people for both sides. With subjects such as multi-level marketing or pyramid marketing much can be learned by examining each side. Better to examine the position calmly and reasonably as an alternative to making assumptions over the differences. Let's calmly examine the 2 clear and concise differences between MLM and pyramid marketing:

O.K. Here we go! Pyramid marketing is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public. Pyramid schemes are a form of fraud.

Multi-level marketing (MLM), on the other hand, is about moving the product through a larger network of distributors so that the business can increase sales. This is the first major difference. There is a product that you are selling.

The second major difference between MLM and pyramid marketing is that pyramid marketing requires each level to DOUBLE before a new level is created so it isn't fair to people lower down in the levels and also unethical. MLM, however, awards a commission based upon the volume of product sold through own sales efforts as well as that of the down line organization.

Multi-level Marketing follows a significantly different structure than pyramid marketing. The network is divided into parts comprising of different number of people. Some parts of the network may comprise of lesser people because the initiator might not have been able to sign-up more people; however, other parts may have flourished due to a hard-working marketing genius have good resources. Hence, MLM turns out to be a fairer approach to generating income and sales and is based on the individual's efforts but rewards the entire team.

So there we have the 2 major differences between MLM and pyramid marketing.

What is the bottom line with both of these concepts? One is unethical (pyramid marketing) and the other is a great way to make money on the internet if you choose a company that fits your interests and are willing to put forth the effort to succeed. MLM marketing has made millionaires all over the world. Get your piece of the pie too!

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