How Pyramid scheme are different from MLM

Pyramid-scheme-different-from-MLM

All of you will be well aware of what the pyramid scheme is and how it works, and what is multi-level marketing. But what is the difference between the two, you will be totally oblivious to this. Because of which people become prey to fraud by putting money in the pyramid scheme. Therefore, it is also necessary to have an eye touch in these two cases.

Multi level Marketing

Multi-level marketing is a better way to network marketing. Who batch their product through their representatives. In return, the company pays its representatives in the form of commission. And there is no fee charge for joining multi-level marketing, apart from this, multi-level marketing business is dependent on its representatives and independent distributors and on the basis of active customers.

Which is directly from the selling companies, so that the entire organization can expand, as well as purchase the goods at the wholesale rate from all the representative company and earn additional benefits from retail sales. Another feature of this is that you can also control your income from it. Because it depends entirely on your efforts. The more you try, the more you earn, your likelihood will increase.

Emphasis on product quality

The main target of the companies associated with multi-level marketing is that the people have to reach the high-quality products to the people.In which there is no question of adulteration. There are many representatives in this business, for which the company gives them a commission.

What is Pyramid Scheme

But the pyramid scheme is very different from multi-level marketing. There is a commission to appoint new members in the pyramid scheme. Which has been declared illegal in most countries and states. Simultaneously, most pyramid schemes have also tried to include themselves in multi-level marketing by claiming money to make money and make a victim of thwart. At the same time, such companies get themselves smuggled into millions of crores by themselves in the name of doing business in multi level marketing.

Let me tell you that the pyramid scheme is that in which the investors make a victim of thug by giving them the lure of giving a huge money back to less investment. As long as the money is retained by the old people, the new people get money back at the very best rate. But as soon as the number of new people goes down.Then the pyramid scheme is suddenly stopped. In the pyramid scheme, the investor pays for the business of a customer, member, and distributor company, while the pyramid scheme closes in a few months or days.