Pyramid Schemes Wrong Terminology For A True Business
The term pyramid schemes is often used incorrectly. A true "scheme" is illegal and the only way you make your money is to sign people up and no product or service is exchanged. Too often people will misuse the term and assume that any business where people recruit other business builders is a pyramid. It's not. As long as a product or service is what people are paying for and they aren't just paying for the "privilege" of joining.
Most businesses today are shaped like a pyramid, though they are not schemes at all. Even the government is a pyramid, you have one top person and multiple people under them. This is a legitimate form of business. All businesses need someone to take the reins and delegate to the rest, right?
Too often people think that network marketing or multi level marketing firms are pyramids, but in truth these are legitimate network marketing businesses. Think of Tupperware, Avon, Mary Kay, etc. These are all businesses that are legitimate and still have a "pyramid" basis, people can recruit other business builders to help them build their business, totally legitimate.
Beware, if someone approaches you and tries to get you join their "business" and they tell you that you can make big money, all you have to do is get people to sign up underneath you, that sounds a lot like a pyramid scheme and you should get as far away from them as possible.
A legitimate business opportunity will not require you to spend an exorbitant amount of money on the program just to stock inventory. You should not be required to stock any "product" besides catalogs and order forms for the items being sold. Although, they may require you to use the products that they sell while you are with them so you can be your own testimonial when selling the product to others.
No one can expect anyone to just sign up and start their business like magic there has to be some training. If someone hires you then expects you to train yourself then you are probably getting caught up in pyramid schemes and you should rethink your position. a business opportunity that is on the up and up should offer training materials and take you through a series of tutorials to teach you what you need to know to start your business.
If you see something that looks too good to be true it probably is. To find out if the business opportunity is legitimate you can always contact the Better Business Bureau, or BBB, to see if there have been any complaints logged against the company you are interested in. Even if there haven't been any complaints, be careful and read everything over meticulously especially the fine print before you sign the contract, if there is one.
If there isn't and any of this other information applies to your situation then you are most definitely dealing with someone who is trying to get you involved in their pyramid schemes.
