The not-so-good things about network marketing: Now before you think I’ve drunk the cool-aid and am now off to start a pyramid scheme, there are some negatives that are very much worth consideration. The most obvious is the clear similarity to pyramid schemes. If you do plan to involve yourself, you need to be sure that you are engaging in a legitimate network marketing system – not a pyramid scheme which is illegal. This will require significant diligence and research on your part to be sure, but a good rule of thumb is to note how the money is made. The Federal Trade commission says the following about the difference between network marketing and pyramid schemes: [4] “They all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program- not based on profits from any real investment or real sale of goods to the public.” However, with direct marketing, the focus is money made v...
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