It's all in the MIND
It is common knowledge that Network Marketing got a bad name because of people using the principle of "PYRAMIDS" for their own benefit and to the determent of others.
To change this perception and break this vicious circle, the situation needs to be evaluated thoroughly.
One of the main reasons for this misconception is that people are UNINFORMED. What they know and learnt about it, is based on what they heard from other uninformed people. - What happens when one uninformed person tries to teach another uninformed person? Or is what they say about ONE BLIND LEADING ANOTHER true?
Let's start off by looking at WHAT a PYRAMID STRUCTURE looks like.
Every LARGE organization in the world is based on a pyramid structure.
- Managing
- DirectorDirectors/Directors/Directors/DirectorsManagers/Managers/Managers/ManagersDivisional
- Heads/Divisional Heads/Divisional Heads/Divisional
- HeadsSupervisors/Supervisors/Supervisors/Supervisors/SupervisorsWorkers/Workers/Workers/Workers/Workers/Workers/Workers
The Public Service and all other large organizations work according to the same structure. This structure ensures effective communication and prevents chaos.
Is a Pyramid structure BAD?
Most of us work in an environment with a similar structure.
For the purpose of this discussion, we will distinguish between Pyramid structures and Pyramid scams.
Pyramid Scams are illegal!
It is based on the assumption that you have to canvas people who have to pay a fee of which you receive a part as compensation. Normally, there are no PRODUCT or SERVICE involved, and if there is a product, it is generally of inferior quality or of very little value.
The person at the top of this structure normally gets compensation (AT THE COST OF THE OTHER PEOPLE) and the last people to get on board, loose everything.
Network marketing are LEGAL!
Network marketing is considered to be the future of modern economy. Network marketing is also based on the pyramid structure, but it is not a pyramid scheme/scam. Normally, there is no start-up fee or membership fee. There is a good quality product available at market-related prices which has to be purchased by die members. A commission is then paid on the sales and this compensation is distributed throughout the structure.
The organization cannot close down, because a quality product is involved. More members will join as the demands for the specific service or product increases.
Network marketing is a type of Franchising, except that you don't need a large amount of money to get started. You also don't need to have a premises, employees or any other overheads and you can make more money than by buying a Franchise
