The truth is both Ponzi and Network Marketing are Pyramid Schemes.
What is a Pyramid Scheme?
A Pyramid Scheme is a business model which involves one person recruiting two or more persons and those persons recruiting more people under the promise of bonuses and commission.
A Ponzi Scheme has a pyramidal structure without any Products or Services while Network Marketing or Multi Level Marketing also has a pyramidal structure but with Products or Services.
Similarities between them is that to Sign up or Join the platform, you have to pay a particular sum of money and you also need to recruit people to get to another level.
As a marketer who wants to advertise products/services for a company or bring in more people, I see no reason why I should be the one to pay before working for or with them.
In both Business Model from my observation, Only about 90% are successful and the source of their money is from the newly recruited ones and those who are not able to recruit at all.
The 90% are the ones you see driving exotic cars,Going on Holidays abroad, Building mansions etc.
Most of them don't even buy the products or use them at all.
This is called paying Peter with Paul's money.
MLM disguises under sales of products but I can categorically tell you that when you get into the system you can only survive by recruiting people.
MLM and Ponzi is also full of deceit as they promise you Heaven and Earth under the pretence of wanting to change the story of your life but at the end of the day you would realise you are only wasting your precious time, money and energy.
If any of them tells you, you don't need to recruit, my dear, run for your life.
Most MLM Company's sells health products and in as much as some of this products work, they are way too expensive.
The time you waste on both business models could be channeled into your personal Brand.
I know of other Good Networks sha oh.
Examples are Computer Network, Road Network, Plumbing Network, Electric Network, Network of Friends and Families, Business Network etc.
Stop looking for fast money. Go and learn a skill, offer services, get a job, or go into trading.
Written by Amobi Chibuike Charles , He is the CEO Gizng Technology