Pyramid Schemes

A discussion on Network Marketing would not be complete without defining what Pyramid Schemes are as so many people seem to associate one with the other.

The definition of this type of scheme is "a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered". They have been around for at least a century and are illegal in many countries, including the United States and Canada. Here are a few things to help you determine is a opportunity you are review is legitimate or a scheme:

• Does the company have a real product or service needed by the general public
• Is their business model sustainable, meaning if new members stopped entering the program would it colapse
• Are you being promised exponential benefits for a single payment
• Does the product being sold have a real value
• Are business references real or just highly paid actors

These are just a few things that you want to consider before investing. Like any investment, you must do your homework before committing.