Be Careful of Pyramid Schemes and Their Dangers

Are you a candidate for working at home on your computer? You might just be, but there are some hot issues you need to understand first.

Not all companies or job sites have legitimate offers. This has become a hot topic as more people have become frustrated after finding out you might actually have to actually pay money to work online.

Keep this in your memory here: The idea of “paying” to work online.

The advertisements in your email box tend to arrive quickly, but the money just never appears. One thing many are unaware of is that you never should pay to work online. You are supposed to be paid for work you do.

Now, it is important also, to understand the difference between “doing a job” and “starting a business”. If you are employed by someone to do a job, you should be paid for your work, either on an hourly or piecemeal basis.

The Conversion Pros

“Starting a business”, however, is a different prospect. If you are working as an “independent contractor”, then your pay is likely to be based on results, and there is nothing wrong with that. Many people spend their entire lives working and getting paid “on commission”, and find it a much more profitable situation!

This is the problem here: many folks go online and want to “work” there… and wind up signing up to “start a business” without knowing the difference or what’s involved.

Remember this: If you started a business in your town you’d first need to lease your space, get your phones installed, connect your electricity, water, Internet access, etc. All the time, not having made any money yet. That’s the way it works in the actual, physical business world.

After that, you’d have to get some inventory on your shelves, insure it, advertise it… and spend a whole lot of money well before the first customer walked through your front door.

One issue that never seems to go away are the pyramid schemes. If you receive an email to join a program… for free… and earn money from your down line, this sounds like the easiest way to make money. In all reality, it can be a nightmare. Or not… depending on a few different things.

You’ll find that in many programs, you have to sign up for free, and then ‘upgrade to a status member’ by buying the product in question, whether you want it or not.

After that, you are told you can make money from those under you, but only if they in turn buy the product as well. The interesting thing here is that what we’re describing is NOT a “pyramid scheme”. It could be a legitimate “multi-level marketing” company.

The thing to take note of is this: in this example, everything is based on a product being sold. As long as there is actual, physical “product” being sold by the company… whether to it’s distributors or to others… this is NOT a “pyramid scheme.

A “pyramid scheme” occurs when there is money moving around… but NO Product Sales. People are encouraged to pay so many dollars for their “position”, and then so many dollars to “improve their position”… but there is nothing tangible changing hands.

Companies like Shaklee, Amway, Avon, Sisel, Mary Kay, are NOT “pyramid schemes”. There is product changing hands for every dollar moved. And that is the fundamental difference.

A pyramid scheme will not last long. An important thing to remember is this: Has the company been in business for any length of time? If we look at the examples above… Shaklee, Amway… etc…. do you really think they would have been in business for 60+ years if they were pyramid scams? That’s nonsense!

There are all sorts of things out there on the Internet. We must learn to use our critical thinking skills, and you just have to know where to look and how to tell if an opportunity is legitimate. A legitimate company already has people working for them and has a good standing on the Internet and off.

There are many websites that offer opinions and advice for working at home, and these websites or forums as they are called, offer some valuable information about specific companies and their reputation.

A few years back, you may remember hearing about pyramids schemes and other types of money-making ideas. If everyone can make money then why are there so many people losing money on these types of programs?

The answer is quite simple: there is an endless supply of people who will fall for the glib, quick “line”, while ignoring the real opportunity right in front of them..

People may be hooked into signing up for all sorts of things. It depends on where they are “at”, psychologically, at the moment they see an advertisement.

What we need to make sure of, is that people understand that there are “pyramid schemes”, and then there are legitimate “multi-level marketing companies”. The two are not the same thing.

Amway, Shalee, and Sisel all have PRODUCTS that they sell… physical objects that change hands at the exchange of money. AND… the way their affiliates get paid is based (at least in part) on the VOLUME of those sales.

Just like ANY sales job on or offline.

The bottom line is this: If people would just understand that “working at home” and “starting an online business” are two different things, most of these misunderstandings would go away.

If you are looking to start an online business, you will need to understand what a real “pyramid scheme” is… and what a real “multi-level marketing company” is.

Understanding the difference can mean the difference between your failure, and your success.

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