Don’t be a statistic to PYRAMID SCHEMES

Pyramid schemes are non-sustainable business models that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. Adapted from wikipedia

Pyramid schemes are destroying the reputation of network marketing. There are many organizations out there that thrive on the willingness of unsuspecting people to submit to the chance of making money. Although network marketing is a legitimate and successful business model, we must admit that there are many loopholes for swindlers and other dishonest people to take advantage of. The need for people to succeed and be wealthy is overwhelming especially on the Internet. This has unfortunately encouraged those dreadful practices.

Network marketing has always produce successful opportunities with little risk. These rogue individuals and some business entities uses these statistics to manipulate the system. They design these schemes to cheat willing prospects and create even more wealth for themselves.

These frauds know that the business model has the potential to create substantial wealth. This has already been proven over and over again. They also know that the dream of most people starting out in this business is to be wealthy and to obtain that success very quickly. They combine these two separate facts and use the results to lure searching individuals into their traps. They decorate their scams with these nice enticing and may very well be possible true stories, of wealthy people who used the system to achieve their wealth. Most people will follow a process if there is already a success story in it. The images they use of nice cars, houses and boats. The heartfelt stories and pictures of successful and happy families help them achieve their quest.

The fact that network market is open to anybody to claim makes it easy for frauds to fit right in. As a business seeker, you have to be alert of those scams to prevent you from falling in these traps. Pyramid schemes are real. There are mischievous and greedy people out there. Their goal is to get money, yours or anybody willing to give it up. Always remember to look for the things that sound too good to be true.

I have seen a few pyramid schemes online and has been approached before by a couple in my everyday life. To me they are obvious to pick out. I can't believe that people actually fall for those claims. These people never look real to me. something about their appearance always give them out. their stories never ad up and every factual questions that is asked of them always gets a blurry answer.I do not know all the outstanding points that they protrude. I am sure that there are quite a few most of which you feel right in your gut. That "it's too good to be true" feeling. However, through some research, I found these key characteristics that expose most pyramid schemes from under the network-marketing blanket . We need to uncover them so that everybody can see.

Here are the five key characteristics that indicates that a business offer is a pyramid scheme:

1. The claim that recruiting of prospects is unlimited in an endless chain of recruiters recruiting recruiters.

2. The promise that moving up in a hierarchy of multiple levels of "distributors" is achieved by your initial recruitment, rather than by your achievement.

3. As a “distributor” you are require to purchase products in order for you to be eligible for commissions and to be able to advance in the business.

4. The company will pay commissions and/or bonuses to more than five levels of "distributors."

5. Everyone in the upline gets' paid a portion from the proceeds of that one sale that you generate.

This diagram Adapted from Wikipedia,illustrates how the pyramid schemes are designed and how in reality they are unattainable. Figure this out, by the time this scheme gets to you, your level may be 15 or below. There is definitely no chance for you there. You are only giving away money to an already lost cause. Click on the diagram for more information on this topic.

I have also found information that is more useful and resources to help identify pyramid schemes . This is at the best encyclopedia on the Internet called Wikipedia . After your first visit, I guarantee that you will bookmark that page. Use it to help you decipher the network marketing facts from the frauds and their so-called "network marketing scams".

Remember this important information: Pyramid schemes were not intended to allow you to become successful. In fact they are simply another way of taking your money from you by asking for it instead of just plain out stealing it from you. It is a polite way to rob you. Be very careful of anyone who tries to introduce you into a scheme like that. Ban them from future business communication with you.