That is what most have heard about multi-level marketing, and most
associate them to pyramid schemes. There is some truth to this notion if
one knows the history. Another name for network marketing is multi -
level marketing with as much as 15 million distributors in America
alone, and over 90 million people involved around the world with
thousands becoming involved every year.
With many people joining every year, it can be daunting task to join into such a business; because of fears and propaganda that revolve around network marketing; and with only less than 5% of marketers making it in the business it can become a daunting task. That is my job, and that is where I would I like to help.
My name is Terry Valdez. I am a professional marketer, health and wellness advisor; and professional writer that helps people succeed financially in these times. You may contact me here at my North Dakota office at 701.575.0155 for a free 1-on-1 advice session on succeeding with Network Marketing. I am here to help unveil the three myths of network marketing by going through the history of network marketing.
Ponzi Schemes
The roots of many pyramid structures started with Charles Ponzi who organized the Securities Exchange Company in 1919 Boston. In his scheme, he issued promissory notes payable in 90 days with 50% interest. This created interest with many diverse professions ranging from politicians, law enforcement officers and reporters. The promise was that new investors pay old investors huge profits with the hope of a return. However, that led towards the demise when Ponzi was the only benefiting from the return.
Taking over $15 million from this idea, led towards a collapse in his organization. He was thrown into jail, and later deported to Italy.
Pyramid schemes later created a different allure that is sometimes referred towards as a Ponzi scheme.
Pyramid Schemes
The difference between networking and pyramid schemes is the product. In a pyramid scheme the product and the promise is the money. In a pyramid scheme there are no actual products being sold, people are asked to invest money where early participants who invested money end up winning while the ones who joined later lose in the organization. The reason why they lose is because they are at the bottom serving only the top of their pyramid, which is why Charles Ponzi was able to earn a high profit than his other investors.
Furthermore, pyramid schemes and Ponzi schemes have similarities that are illegal in today's market. It is illegal because no actual return takes place amongst new investors.
In networking, there is a promise of a return on products and a return of money when a person chooses to invest.
Network Marketing
Network marketing takes out the advertising and retail shops to directly sell towards the consumer. Furthermore, the costs of the products are usually lower due to the lack of advertising of their products. And, in network marketing a person is paid different types of compensation depending upon the company's compensation plan.
The start of network marketing started back in the 1930's by a man named Carl Rehnborg when he was first introduced to dietary supplements in China. Upon his return to America, he created The California Vitamin Company. In 1939, he re-branded the company as Nutrilite. It wasn't until six years later did he invent the multi - level marketing strategy.
After World War II when people were coming back from the war, and neighborhoods were a new concept network marketing started to boom; because neighborhoods were in close knit communities that made befriending other people easier; and people were looking for work after the war.
After the dot.com revolution, people are communicating more online rather through tight knit neighborhoods. Hence, when people are no longer enrolling people through warm markets they think it is ineffective; and refer it towards either a Ponzi scheme or pyramid scheme.
The Dot.com Revolution
Multi - level marketing it still alive today, and is still exploding for a few reasons. People want to be their own boss realizing that job security no longer exists; and with the population exploding there is a shrinking job market.
The dot.com revolution has revolutionized the way we do business, the way we connect and the way we communicate. In network marketing, we can take part of this trend in society; and boom from it. Network marketing is about building networks of people.
If you like to learn more about network marketing, please contact me at office in North Dakota at 701.575.0155. I am here to help you succeed in this exciting time of becoming the next generation of millionaires.
Or, you can download my free report on learning how to Create Winning Businesses here. This report will be around for a limited time so act now!
With many people joining every year, it can be daunting task to join into such a business; because of fears and propaganda that revolve around network marketing; and with only less than 5% of marketers making it in the business it can become a daunting task. That is my job, and that is where I would I like to help.
My name is Terry Valdez. I am a professional marketer, health and wellness advisor; and professional writer that helps people succeed financially in these times. You may contact me here at my North Dakota office at 701.575.0155 for a free 1-on-1 advice session on succeeding with Network Marketing. I am here to help unveil the three myths of network marketing by going through the history of network marketing.
Ponzi Schemes
The roots of many pyramid structures started with Charles Ponzi who organized the Securities Exchange Company in 1919 Boston. In his scheme, he issued promissory notes payable in 90 days with 50% interest. This created interest with many diverse professions ranging from politicians, law enforcement officers and reporters. The promise was that new investors pay old investors huge profits with the hope of a return. However, that led towards the demise when Ponzi was the only benefiting from the return.
Taking over $15 million from this idea, led towards a collapse in his organization. He was thrown into jail, and later deported to Italy.
Pyramid schemes later created a different allure that is sometimes referred towards as a Ponzi scheme.
Pyramid Schemes
The difference between networking and pyramid schemes is the product. In a pyramid scheme the product and the promise is the money. In a pyramid scheme there are no actual products being sold, people are asked to invest money where early participants who invested money end up winning while the ones who joined later lose in the organization. The reason why they lose is because they are at the bottom serving only the top of their pyramid, which is why Charles Ponzi was able to earn a high profit than his other investors.
Furthermore, pyramid schemes and Ponzi schemes have similarities that are illegal in today's market. It is illegal because no actual return takes place amongst new investors.
In networking, there is a promise of a return on products and a return of money when a person chooses to invest.
Network Marketing
Network marketing takes out the advertising and retail shops to directly sell towards the consumer. Furthermore, the costs of the products are usually lower due to the lack of advertising of their products. And, in network marketing a person is paid different types of compensation depending upon the company's compensation plan.
The start of network marketing started back in the 1930's by a man named Carl Rehnborg when he was first introduced to dietary supplements in China. Upon his return to America, he created The California Vitamin Company. In 1939, he re-branded the company as Nutrilite. It wasn't until six years later did he invent the multi - level marketing strategy.
After World War II when people were coming back from the war, and neighborhoods were a new concept network marketing started to boom; because neighborhoods were in close knit communities that made befriending other people easier; and people were looking for work after the war.
After the dot.com revolution, people are communicating more online rather through tight knit neighborhoods. Hence, when people are no longer enrolling people through warm markets they think it is ineffective; and refer it towards either a Ponzi scheme or pyramid scheme.
The Dot.com Revolution
Multi - level marketing it still alive today, and is still exploding for a few reasons. People want to be their own boss realizing that job security no longer exists; and with the population exploding there is a shrinking job market.
The dot.com revolution has revolutionized the way we do business, the way we connect and the way we communicate. In network marketing, we can take part of this trend in society; and boom from it. Network marketing is about building networks of people.
If you like to learn more about network marketing, please contact me at office in North Dakota at 701.575.0155. I am here to help you succeed in this exciting time of becoming the next generation of millionaires.
Or, you can download my free report on learning how to Create Winning Businesses here. This report will be around for a limited time so act now!
