THE DIFFERENCE BETWEEN THE NETWORK MARKETING OPPORTUNITY OF THE OFFICIAL WITH PYRAMID SCHEME Forget compensation program that resembles a pyramid and people will call your network marketing business as a "one trick." In fact, every business model that is profitable and durable in the world using pyramid structures. This shows that people lack confidence in the form of a pyramid, and even more with how to shape, build and maintain it. In this article, we will clarify how to understand what networking model beyond moneymaking schemes that circulate in the world full of lies
SEEKING TRUTH On-paced world of information currently available, Google reported 830 million search results and the search term "Network Marketing. 'Each result offers a new perspective on the industry that many wrongly understood and debated this. Simple, who became the Holy Grail for infirmasi define user-based network marketing as: Network Marketing is a marketing strategy that provides benefits to the promoter not only direct selling company from selling the products they produce, but also on sales people who are recruited into the company. Other product and company usually sold directly to consumers and potential business partners through marketing relationships and verbal references. Easy as that, of 830 million search results through Google, can guess that about 50% of whom may speak of a lie; how network marketing has undermined the economy; how 'the victims' lost millions, and the people who promote the direct selling company should be ignored . With so many uncontrollable conversations in cyberspace about this industry, hard drawn conclusions. What is clear is that a lot of misconceptions about pyramid schemes and network marketing opportunity is real. It seems that many people do not realize that both are different things in two different ways of doing business. PERCEPTION PROBLEM One thing is for sure, network marketing industry is a challenging industry perceptive and in a third world economy where the industry has its own place, very little awareness and almost no regulation or law about it. This further increases misunderstanding, doubt, and reluctance of the industry. Moreover, network marketing is a marketing word spoken, which means if there are four million people who promote this business, then there are four million chance of misunderstanding, if there is no explanation about the truth. Equitable WELFARE Unequal Welfare is also a concern that tricks the mind its own network marketing candidates, who want to browse bid opportunities are endless industry. In 1906, Italian economist, Vilfredo Pareto created a mathematical formula that describes the welfare inequality in the nation, with keen observation that 20% of the people control 80% of welfare. 'Pareto Principle' is, or who later called to the law 80/20, showed that most of the good life in the business, reward or result, is never evenly distributed, because there are always people who contributed more than anyone else. And to realize that the majority of results come from minority input, then we focus on 20%, that's what distinguishes the more than if we attempt in 80%, which does not produce much. For example, if 20% of employees contributed 80% of the results, the focus should be on providing benefits to employees. Similarly, if 20% of customers accounted for 80% of revenue, it must put emphasis on customer satisfaction business.
DIFFERENCE So what factors in the model of network marketing in the direct selling company that differentiates from a pyramid scheme or scam? Here are four major differences.
1. Direct selling company provides quality products and services, not like a pyramid scheme, where you do not obtain a product or service quality for your initial investment, direct selling companies spent millions to research and development in creating an exclusive product, innovative, and quality designed to meet the lifestyle needs of people around the world
2. Actor network marketing do not earn commissions by recruiting, network marketing actors do not have to recruit new members for a commission, because this organization is designed to provide benefits to people who promote their products. Commissions paid not solely because of recruitment, but because there are products for sale on every package beginners. In the pyramid, there is no financial reward unless you are able to recruit others into enterprise
3. Direct selling company restrict compensation program, most direct selling companies limit the number of people who get a commission from sales, to be fair for everyone. Conversely, a common example of a pyramid scheme is when all the upline earn money, while referrals to miss because he was recruited later
4. Direct selling company provides security to the perpetrators of their marketing network and prevent the flood of products, direct selling company authorized to allow the distributors to use proper methods in handling inventory and do not encourage the flood of products, the Company does not allow large-scale purchases of its products with the aim of reaching business opportunities offered. This results in a focus on developing the right networks and means distributors not to sell too many products or worry about inventory
5. Network marketing is not a 'get rich scheme', from the beginning, most network marketing opportunities promise you the results and financial freedom if you work hard, think smart, and trying to succeed. Companies that promise an easy way to get rich, maybe just a hoax
6. Opportunity network marketing business supported facilities, direct selling company official will help you record the purchase status, income, commissions, and delivery of your product by providing full customer support. In addition you will also receive regular product bulletins, how marketing and promotions to help you improve your business and your income
7. Network marketing opportunity to have a solid training system, the company saw significant direct selling network marketing training to the perpetrators of them, and encourage more qualified trainers who have knowledge and experience to help you better understand the business and its products, and able to guide and direct you to success
8. Direct selling company has a policy and code of conduct marketing, you can distinguish legitimate network marketing opportunities through a pyramid scheme based on the fact that the policies and procedures set forth in official business, which bind the principals of network marketing on strict rules and agreements. Violations of the rules, or policy and procedure can be subjected to the action. Most direct selling companies are confident to achieve growth and long-term stability by creating a culture of ethical marketing.
"Knowledge is power. So when someone gives one reason why they feel that your network marketing business is just a trick, you can express eight opposite reason. "
2. Actor network marketing do not earn commissions by recruiting, network marketing actors do not have to recruit new members for a commission, because this organization is designed to provide benefits to people who promote their products. Commissions paid not solely because of recruitment, but because there are products for sale on every package beginners. In the pyramid, there is no financial reward unless you are able to recruit others into enterprise
3. Direct selling company restrict compensation program, most direct selling companies limit the number of people who get a commission from sales, to be fair for everyone. Conversely, a common example of a pyramid scheme is when all the upline earn money, while referrals to miss because he was recruited later
4. Direct selling company provides security to the perpetrators of their marketing network and prevent the flood of products, direct selling company authorized to allow the distributors to use proper methods in handling inventory and do not encourage the flood of products, the Company does not allow large-scale purchases of its products with the aim of reaching business opportunities offered. This results in a focus on developing the right networks and means distributors not to sell too many products or worry about inventory
5. Network marketing is not a 'get rich scheme', from the beginning, most network marketing opportunities promise you the results and financial freedom if you work hard, think smart, and trying to succeed. Companies that promise an easy way to get rich, maybe just a hoax
6. Opportunity network marketing business supported facilities, direct selling company official will help you record the purchase status, income, commissions, and delivery of your product by providing full customer support. In addition you will also receive regular product bulletins, how marketing and promotions to help you improve your business and your income
7. Network marketing opportunity to have a solid training system, the company saw significant direct selling network marketing training to the perpetrators of them, and encourage more qualified trainers who have knowledge and experience to help you better understand the business and its products, and able to guide and direct you to success
8. Direct selling company has a policy and code of conduct marketing, you can distinguish legitimate network marketing opportunities through a pyramid scheme based on the fact that the policies and procedures set forth in official business, which bind the principals of network marketing on strict rules and agreements. Violations of the rules, or policy and procedure can be subjected to the action. Most direct selling companies are confident to achieve growth and long-term stability by creating a culture of ethical marketing.
"Knowledge is power. So when someone gives one reason why they feel that your network marketing business is just a trick, you can express eight opposite reason. "
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