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Marketing hierarchy
And a pyramid scheme can be defined as a fraudulent money - making venture , which is based on non-sustainable business model that involves the exchange of money primarily for the registration of other people in this plan without a legitimate product or service being delivered. Ultimately lead to a number of new recruits failed to maintain payment system and the collapse of most of the people with the loss of the money that paid it.
A more realistic sense , and is probably the easiest way to identify pyramid schemes is firstly there is no legitimate product or service in question ( ie you do not get a legitimate product in return for your initial investment ). The second way to identify pyramid schemes is that you do not get the financial returns unless you have successfully introduced a number of new recruits into the pyramid . Basically, pyramid schemes focus on the money you can earn by recruiting new people into the pyramid and generally ignore the marketing and sale of any products or services .
One of the most distinct pyramid marketing is the lack of a valuable product , but it gets a hierarchy Amolath the marketer of the subscription price of those who have jointly Then , rather than the sale price of the product , because it basically does not have any product
Does not have any relationship Bcpka and has been prohibited and banned in most major countries including the UAE and America
Network Marketing
The concept behind network marketing is a distribution model that allows the company to sell their products directly to the consumer. Choosing to use word of mouth approach ( networking ) instead of advertising through traditional streams (media , for example) . So instead of paying the media for advertising, regulate marketing companies to reward distributors network through the committee in return for selling their products and find new customers .
Therefore, the main focus of the network marketing company and product distribution . In fact, in a legitimate network marketing company , distributors are not required for new distributors in order to earn a commission , they can earn money by selling purely a product of the company .
Although distributors can choose to sell the company 's products to earn commissions , and not everyone wants to be a sales person , and therefore choose to recruit more distributors in the organization as a means to build their referral base . This does not create a group of loyal customers , it also allows you to benefit from the efforts of others to create a stream of residual income. This system is applied by the company " Gold Mine International " ..
Any network marketing ( or direct sales ) is an alternative method of marketing to traditional marketing , where they are relying on the consumer himself in promoting the products of a particular company , in exchange for kickbacks by a clear system . It is promoted and sales in network marketing in any place, and does not require a fixed site for the sale of any company depends on network marketing to promote their products. The promoters of the company 's products have independent representatives , not understanding the staff in the company itself .
