The Terms “Network Marketing” and Direct Sales are frequently used and often misinterpreted by many people. The most common mistake is to compare Network Marketing Systems as selling illegal “Pyramid Scheme“.
You will find below some questions to consider in order to differentiate a legitimate Network Marketing company & a Pyramid Scheme. This list is not exhaustive and is not intended to be.
What is the main source of income for the company?
If the company’s revenues stem mainly from contributions made by home sellers and there is no independent economic activity itself, the company is typically considered a Pyramid Scheme. If, instead, the primary income of the company from the sale of products or services, then chances are that this company is considered Legitimate Network Marketing.
An example of a Legitimate Direct Selling Company is Talk Fusion whose activity is to provide Video Communication Services to its customers and selling these services is the primary source of income of Talk Fusion, which is over 90% of revenues.
How are remunerated the Independent Representatives of the company?
If the independent representatives of the company are only paid for recruiting new people, this is clearly a sign that this company is based on a Pyramid Scheme. Such compensation is not always obvious and can be called training costs, etc.. However, if the independent direct sellers are compensated based on product sales and / or services to final consumers, it usually indicates that it is a Legitimate activity of Network Marketing.
The remuneration paid to Talk Fusion’s Independent Associates is based on the sale and use by customers of Talk Fusion.
Talk Fusion Independent Associates are paid in SIX Ways:
1. Fast Start Bonuses
2. Team Commissions
3. Bronze Maker Bonuses
4. Mega Matching Bonuses
5. Advancement Bonus
6. Leadership Pool.
Talk Fusion Associates are not paid for simply sponsoring other Independent Associates in their Network. If an Independent Associate does not acquire customers as required by the incentive plan, no compensation is paid!
To learn more about the characteristics of a business Network Marketing (or multi-level marketing) and how to distinguish a Pyramid Scheme, please visit the website of Direct Selling Associations where Talk Fusion is a Proud Member: http://www.dsa.org
Filed under: Internet Marketing Tagged: | Business, common mistake, diana meyer, Direct Sales, Direct selling, Direct Selling Company, DSA Members, MLM, multi-level marketing, network marketing, Opportunities, Ponzi scheme, primary source of revenue, Pyramid Scheme, Sales, Talk Fusion Pyramid Scheme, talk fusion reviews, The difference between Network Marketing and Pyramid Selling Scheme
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