There are different means of making money online. People can earn through freelance writing, email marketing, internet marketing, blogging, affiliate programs etc. Other ways of making money online is through Multi-Level Marketing programs (MLM) & Ponzi schemes. We will try to distinguish and give the Major Differences Between Ponzi Scheme & Multi Level Marketing Program.
The knowledge of the Major Differences Between Ponzi Scheme & Multi Level Marketing Program is very vital. We have ponzi schemes such as Twinkas, MMM, Mysurecash, Get-Help-Worldwide etc. We also have current MLM businesses like Happy World Meal Gate, Helping Hands International, Lavita Rica etc. MLM have proven more trustworthy than Ponzi schemes and the testimonies abound. This piece will help you make a good decision on which to join.
Major Differences Between Ponzi Scheme & Multi Level Marketing Program
The differences between a ponzi scheme and an MLM program are listed below. Let us explore them.
|1||MLM programs are usually registered in the host countries. That is to say, it is legal.||Ponzi Schemes are not registered business models.|
|2||Furthermore, MLM Businesses usually have sponsors both locally and internationally.||No ponzi scheme is known to have a sponsor.|
|3||MLM owners/Directors are usually known.||On the other hand, no one knows the owners and originators of ponzi schemes except (MMM).|
|4||However, MLM takes time to build and it’s very reliable.||Most ponzi schemes are HYIP – High Yielding Investment programs. They promise very high returns in short times.|
|5||MLM programs have compensation programs and a detailed structure.||Ponzis do not have compensation plans.|
|6||While joining MLM, payments are made to the company. This ensures stability.||Whereas, in ponzi, payment is made between individual members.|
|7||In MLM, it requires team efforts to earn massively.||Ponzi do not mostly rely on team efforts.|
|8||Most MLM companies use it as a marketing strategy to promote their businesses.||Ponzis are not known to be affiliated with any business.|
|9||MLM programs stay for years.||Ponzis can close down in little or no time.|
There could be other differences, but these are the major differences. These major Major Differences Between Ponzi Scheme & Multi Level Marketing Program is meant to be a guide. We hope you found it helpful.
Things To Check Before Investing In MLM Programs
Before you join any MLM program, these factors should also be considered.
- Obtain and verify all company information, including name, address, phone number, website, and principals.
- Find out start-up costs and the expected return on investment.
- Review all marketing material and sales plans.
- Verify earnings of other independent distributors that have worked for or are currently employed by the company.
- Clarify contract cancellation and product buy-back policies.
While many Ponzis have failed, others have MMM-Nigeria and GetHelpWorldwideExclusive has remained steadfast. You may wish to consider them on your own risk.
If you have any question on the Major Differences Between Ponzi Scheme & Multi Level Marketing Program, use the comment box below and we will get back to you. Thank you.