MLM/Network Marketing : Scam or True Opportunity?
By Joseph Demasi

You have heard it all before. That MLM thing is nothing but a scam, a pyramid scheme where the only way to make money is to get in fast and early and get out before the whole thing collapses. On the other hand, there are true legitamate opportunities that fall under the so called MLM banner. There are many factors to consider in determning the true value of an opportunity

Let us delve into some of the history of the free market system as relating to MLM or Network Marketing. Several manufacturers of products in the early 50's tried to sell their wares the traditional way, by going to stores and trying to get on the shelves and found that this was a tough task because the stores would rather spotlight their own brand products over something new and relatively unknown. If a company does not have a big ad budget and they want to keep tight control of the product and not sell the rights out for pennies on the dollar, it is almost impossible for them to make any kind of headway into the public domain.

There needed to be a better and cheaper way to get these products out there without spending millions on a Madison Avenue ad campaign. It goes without saying that I am referring to producs that were of the highest integrity and worth every bit as much as the so called national brands at that time. We are not talking about inferior products. Anyone that has used one of these products can attest to that.

MLM is born:

In 1954, a young man came up with a marketing system that would bypass the great advertising machine and take the product to the streets in the hands of entrepreneurs from all walks of life that believed in the product and the chance to make some money by recommending the products to friends and family. They were rewarded by the company through volume bonuses, so instead of the company paying big money for advertising - the money would go back into the pockets of the individual distributors. Basically payng the people that recommended the product for their word of mouth advertising. So in many cases, these products that were just as good as the national brands, would actually cost less to use because the company would save so much on advertising.

It is tue that there have been some MLM companies that have been considered a pyramid scheme andhave been shut down quickly by the FTC. MLM has gotten a bad rap because of Uncle Joe trying to sell Grandma Betty on the great business venture where you only have to get 4 friends to do the business and retire in a year. This get rich quick mentalty of some distributors that only care about recruiting new people as not helped the industry. When you have an army of distributors out there, the company can only do so much. Every reputable company has a code of ethics and expects their distributors to follow suit, but sometimes it is hard to enforce.

Anytime there is money to be made and big money involved there are the scam artists that will try to take advantage and give the industry a bad name. With the recent shutdown of PAS ( prosperity automated systems) we know the Government is always on the lookout for pyramid type schemes that only benefit the first people in. Don't rely on the government to always help out, even with PAS, it is estimated that over 5000 people lost the $4k investment they made and probably will never see it again. With PAS, the writing was on the wall. If someone tells you that you will make thousands of dollars a month with no work on your part at all- that should raise a red flag. No company of integrity is going to sell you that pie in the sky BS.

With the right company and compensation plan MLM/Network Marketing can be a true opportunity. Do not expect to become rich overnight. Like anything of value it will take work and some sacrifice, but with the right sponsor and system in place to teach you and give you step by step guidance, it can be a vey rewarding journey. It has been a way to business ownership for millions of people worldwide who otherwise would not have had the opportunity because of the usual high start up costs of traditional businesses.

For a great system that can take you step by step to succeeding online GO HERE. If you want to know about what you need to be looking for in a primary Network Marketing opportunity
GO HERE.

To Great Success,

Joseph Demasi