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Pyramid Schemes Unmasked

By: Jan Greeff, Fri Dec 9th, 2005 08:37:41 PM

NETWORK MARKETING PRINCIPLES / PYRAMID SCHEMES

PYRAMID SCHEMES AND TYPICAL ORGANIZATIONS ARE BASED ON THE STANDARD PYRAMID

Characteristics · Large investment / Entry fee. · Products are unimportant. · Income comes from recruiting new members. · Those at the top always earn more. · Distributors end up with unwanted stock. · New members must purchase excessive stock. · Typical lifespan is 12 to maximum 24 months.

NETWORK MARKETING IS BASED ON THE CONCEPT OF AN INVERTED PYRAMID

Characteristics · Low financial input and little or no risk. · Value in products / services. · Income from product sales. · Distributors can earn more than their recruiters. · Guaranteed products can be returned for refund. · No need to purchase large stocks. · Stable companies with proven track records.

It is interesting to note that most commonplace structures are based on the standard pyramid, i.e. company staff structures, National, Regional and Local Governments, management structures of clubs, etc. This type of structure allows for very limited room at the top and there is no scope for progress beyond the top for those below.

The concept of an inverted pyramid as it is utilised by network marketing companies was initiated in and is still being used by the church. The main characteristic of this concept is that of support and caring. There is unlimited room at the top and every participant has unrestricted scope for progress, even way beyond their recruiters.

Visit http://wellness.oppiweb.com for more information about this dynamic industry.

About the author: Dedicated to the industry of the 21st Century: Network Marketing, with 16 years' experience in the industry.

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