The Basics: Pyramid Schemes Vs. Multi Level Marketing

Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} Whatis the difference between Pyramid Schemes that collapse and true Multi LevelMarketing? To begin with, let’s go ahead and show what the similarities are andthen we will explore what separates these two marketing techniques thatcompanies use on a daily basis.   Themajor similarity for both of these is paying big money to their “distributors”,i.e. you and me for signing up people to sell a product to others. The morepeople that you sign up the bigger your commission will be and so on for theset downline plan structure. The meaning of downline and upline are as follows:   ·           Downline – People you have referred or have been referred by people yousigned up. Upline – The direct line of people who have referred the person who referred you.   Thisis where the similarities end and why they are usually confused as one for theother. If you dig further into details the truth behind a Pyramid Scheme youfind that these are illegal and will always fail. The reason for this is due tothe fact there is no service or product that is truly transferred from oneperson to another. Or if there is a product it is usually a series of plans onhow to make money by selling this plan to another person. These marketingtechniques have a limited number of people that will be brought into the systemand eventually runs their market dry causing the system to fail after so muchtime. I would also let you know the marketing plan that you purchase is alwayssold at a premium price.   Nowwhat makes Multi Level Marketing so profitable and perfectly legal? First thereis a true product that is sold and not sold at a high premium to garner a quickbuck but rather a true word of mouth marketing technique. Let’s go into thebasics of this with a company that I am familiar with and why they are a trueMLM company Vs a Pyramid Scheme. This company is called Global Domains International . You canreach their information by clicking onto the hyperlink I have set up for you orby visiting my webpage which is www.thenewstart.ws to find out about the company and how they work. What this company is sellingis web hosting which is an actual product that is used by millions of peopledaily.   Nowwhy do they qualify as a MLM? They qualify because you pay $10 a month to hostyour webpage and your company if you chose to have an internet business. Withmany of the .com’s being sold, the world has been in need of a new ending andyou see that with .gov, .tv, .mil and so on. This company uses the .ws whichstands for website. They give you the ability to do anything with your websiteand you can use any name that has not been taken as of yet. So if you say wanted, www.google.com but because it has alreadybeen purchased and owned, you would be able to get it with the new ending as.ws. Now obviously this has been taken for reason that you can tell. Thiscompany also allows you to purchase all the endings for websites to help keepother people from using your unique name and to help grow your web traffic. For$10 on each domain per month, this is a steal.   Nowfor how the payment scheduling works so you can see why you make money if yousign other people up while still able to have your website live and sellingyour own products. For every person you sign up, $1 of their monthlysubscription to have their website gets paid directly to you. This is done for5 total generations or downline as it is referred to in the MLM world. Let meput it into a small table for you so you can see how this process works. We aregoing to make the following assumptions:   ·           You sign up 5 people who then sign up 5 people until you reach your 5 th level   Level # of people signed up Commission 1 5 $5 2 25 $25 3 125 $125 4 625 $625 5 3125 $3125 Monthly total 3,905 $3,905 Yearly Total 3,905 $46,860   Asyou can see with this table you find that you can easily reach a yearly totalof $46,860 for the assumptions we used. Let’s put this in a better perspective,that is 3,905 websites that are directly linked to you through the people youhave shown about this company. It is estimated that there will be approximately500 million websites in the next few years and why should you be one of thelast to buy a domain and pay a premium. If you visit my site to get started, you will haveyour own website and hosting for as little as $10 a month, not to mention theability to have it hosted for free if you sign other people up to have theirwebsites done through this company.   Ialready have my site up for free and working on getting more because theproducts that you sell are only limited by what you want to sell and what youwant to market. If you feel that you would like more information, feel free tocontact me through my website www.thenewstart.ws or by email at noah.adler@thenewstart.ws .

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