Beware there are many Fake Network Marketing programs. Get the truth and protect yourself.

1. COMPARE
LEGAL NETWORK
MARKETING AND ILLEGAL
PYRAMID SCHEMES

2. 2DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
PYRAMID SCHEMES
Pyramid schemes are, however, fraudulent
schemes, disguising as an MLM strategy. The
difference between a pyramid scheme and a
lawful MLM program is that there is no real
product that is sold in a pyramid scheme, and
commissions are based only on the number
of new individuals one introduces into the
scheme.
Unfortunately, not every multilevel
marketing opportunity is a legitimate
business opportunity. Many pyramid
schemes, frauds designed to part the
unwary from their money, are disguised.
Likemultilevelmarketing,pyramidschemes
depend on recruiting people to become
distributors of a product or service.
Like MLM, the pyramid scheme offers the
opportunity to make money by signing
up more recruits and by accomplishing
certain levels of achievement.
The big difference between multilevel
marketing and pyramid schemes is that
MLM is legal in Canada (and most of the US)
and pyramid schemes aren’t. Participating
in a pyramid scheme is an offense under
the Criminal Code of Canada, punishable
by up to five years imprisonment.
But it can be very difficult for the person
looking for a business opportunity to tell
the difference between a legitimate MLM
opportunity and a pyramid scheme at
a glance. How do you tell whether it’s a
legitimate business opportunity or a scam?

3. 3DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
PYRAMID SCHEMES HAVE
ONLY ONE PURPOSE
The big difference between
multilevel marketing and a
pyramid scheme is in the way
the business operates. The
entire purpose of a pyramid
scheme is to get your money
andthenuseyoutorecruitother
suckers (ahem - distributors).
The entire purpose of MLM is
to move product. The theory
behind MLM is that the larger
the network of distributors, the
more product the business will
be able to sell.
Use these questions as an acid
test if you’re in the least doubt
as to whether the opportunity
you’re considering is multi-
level marketing or a pyramid
scheme:

4. 4DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
{{ Are you required to “invest” a large amount of money up
front to become a distributor? This investment request may
be disguised as an inventory charge. Legitimate MLM businesses
do not require large startup costs.
{{ If you do have to pay for inventory, will the company buy
back unsold inventory? Legitimate MLM companies will offer
and stick to inventory buy-backs for at least 80% of what you
paid.
{{ Is there any mention of or attention paid to a market for
the product or service? Multilevel marketing depends on
establishing a market for the company’s products. If the company
doesn’t seem to have any interest in consumer demand for its
products, don’t sign up.
{{ Is there more emphasis on recruitment than on selling the
product or service? Remember, the difference between
multilevel marketing and a pyramid scheme is in the focus.
The pyramid scheme focuses on fast profits from signing
people up and getting their money. If recruitment seems to
be the focus of the plan, run
CHECKLIST FOR RECOGNIZING
A PYRAMID SCHEME

5. 5DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
Network marketing, sometimes also called
direct sales, is a business model that does away
with the middleman. The manufacturer markets
products directly to the consumer without
having to pay the costs of advertising or having
to build and train a large sales force.
To do this, the manufacturer uses independent
distributors to promote its products at the
distributor’s own expense.
Since the manufacturer has saved huge sums
of money by not having to advertise and
build a sales force, it passes the savings on
to the distributor in the form of bonuses and
commissions.
The independent distributor promotes the
products by networking with friends, relatives,
and acquaintances.
In a sense, all that the distributor does is
recommend the product to others, and if they
decide to buy it, he/she gets paid.
What a concept! Wouldn’t you have loved being
paid by the film studio or theater every time you
recommended a movie to someone that they
went to see?
Think of all the people to whom you have
referred a product or service! You would be in
a different financial situation today if you had
received a commission for every referral you
made.
Network marketing is a win-win-win situation.
The manufacturer saves money and lowers
LEGIT NETWORK
MARKETING PLANS

6. 6DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
his overhead and risk. The distributor promotes the products and earns
some extra income. The consumer purchases a product that has been
recommended to him as having value, rather than buying something
because of slick advertising.
Network marketing isn’t a get-rich-quick scheme. Of course some people do
make large amounts of money very quickly. Many would say those people
are lucky. But success in networking isn’t based on luck. (Unfortunately,
money won’t sprout wings and fly into your bank account no matter what
someone has promised you.) Success in network marketing is based on
following some very basic yet dynamic principles.
The real key is this: Network marketing is all about leverage. You can leverage
your time and increase the number of hours of work effort on which you
can be paid by sponsoring other people and earning a small income on
their efforts. J. Paul Getty, who created one of the world’s greatest fortunes,
said “I would rather make 1 percent on the efforts of 100 people than 100
percent on my own efforts.” This very basic concept is the cornerstone of
network marketing.
For example, most successful people building a network marketing business
do so in an organized method. They work a few dedicated hours each week,
with each hour of effort serving as a building block for their long-term
business growth. Then they sponsor other people and teach those people
how to sell the company product and sponsor others who duplicate the
process.
By helping the people you personally sponsor to sponsor others, you
duplicate yourself. As this process continues, you create compound growth
that can lead to hundreds or even thousands of people coming into your
business. You leverage your time by helping others be successful and earn
an income from all their efforts.
With network marketing, there are no big capital requirements, no
geographical limitations, no minimum quotas required and no special
education or skills needed. Network marketing is a low-overhead, home-
based business that can actually offer many of the tax advantages associated
with owning your own business. Network marketing is a people-to-people
business that can significantly expand your circle of friends. It’s a business
that enables you to travel and have fun as well as enjoy the lifestyle that
extra income can provide.

7. 7DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
MLM MULTI-LEVEL
MARKETING
Now onto multi-level marketing (MLM).
In a nutshell, it is network marketing on
steroids!
As an independent distributor in the
MLM industry, you are allowed – no, you
are encouraged – to build your own sales
force of people who will also promote the
products.
Thisisthekeydifferencebetweennetwork
marketing and multi-level marketing.
You not only build your own team (sales
force), but you teach your team members
to duplicate your efforts and become
leaders of their own teams.
When members of your team recruit
independent distributors and become
leaders of their own sales force, they still
remain under your umbrella and you
earn money from their efforts.
All distributors, even those brought
in by someone else on your team, are
considered to be part of your business
and are placed beneath you on your
business chart. In MLM language, they
are considered to be your “downline.”
This downline is made up of many layers
or levels – hence the name multi-level
marketing.
As with network marketing, multi-
level marketing is also a win-win-win
situation – only the wins are greater!
The manufacturer sells many times
more products, the income potential
of the distributors is unlimited, and the
consumer saves money on a superior
product.

8. 8DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
COMPENSATION PLANS
AND MODELS
MLM COMPENSATION PLANS
MLM strategy has different compensation plans which differ slightly based on
how the commission is distributed among promoters. The plans include Unilevel,
Stair step Breakaway, Matrix, Binary and Hybrid plans.
The Unilevel model is the simplest one. The design is such that a person can
recruitunlimited“frontline”distributorsfortheproduct.Thefrontlinedistributors
are encouraged to recruit more distributors, and thus the cycle continues.
Commissions are paid up to seven levels deep.
The Stairstep Breakaway model is designed to encourage individuals as well
as group sales. In this model, a group leader is assigned with multiple recruits
under them. The goal is to achieve as set of volume of sales in a set time. Once
that it achieved, the distributors move to a higher commission level. This pattern
continues up to a certain limit, after which the distributor breaks away and this
pattern of commission ceases. From this point onwards, other commissions and
incentives are provided to the representative.
Matrix models are similar to the first type, except that a limited number of
distributors can be sponsored at any level, and once that preset number is
reached, another matrix can be started.
Binary models allow only two distributors to be sponsor in the frontline, and if
there are more sponsors, they spill over to the next level. So at any level, only
two distributors are required to complete the compensation plan. Also, the
compensation has to be balanced between the two distributors at any level, such
that the volume of sales does not exceed a certain percentage of the distributor’s
total sales.
Hybrid models, as the name suggests, combine any of the above mentioned
compensation plans.

9. 9DIFFERENCE BETWEEN NETWORK MARKETING, MULTI-LEVEL MARKETING AND SCHEMES
PYRAMID SCHEME COMPENSATION
MODELS
The models include in the Pyramid Scheme include 8-ball model and Matrix
scheme. In The 8-ball model each person has to recruit two people into the
scheme. These people have to pay a sum to enter the scheme called a “gift
sum”. The captain or the person at the top receives the gift money from
8 people before exiting the scheme. The remaining people move up the
scheme, and this pattern continues as more people are recruited into the
scheme.
Matrix scheme is also a pyramid scheme except that people are required
to pay for a product in advance and wait in a queue in order to enter the
scheme. When the recruited person further recruits a certain number of
people, he or she receives a product like a camcorder or television that is
worth much less than the money paid, and exits the scheme. This scheme
collapses when no more people are willing to pay and join.

10. Presented by
Gary Davis ( Team Leader/Recruiter/Trainer)
admin@paychecksllc.online
Message me anytime: https://www.messenger.com/t/GDavisFamily
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