India MLM Software: difference between the financial pyramid and multilevel marketing (Part I)

Comparative: the difference between the financial pyramid and multilevel marketing

One of the biggest doubts about multilevel marketing MLM Software and the relationship with financial pyramid. That's because some companies that worked with the (illegal) pyramid system masked it as multilevel marketing.

Due to this and other doubts we will clarify better and explain that MULTILEVEL MARKETING IS NOT A PYRAMID.

What is a pyramid?

Known as a financial pyramid or pyramid scheme, MLM Software in India it is a non-sustainable business model that depends on the progressive recruitment of other people to the scheme at unsustainable levels.

The financial pyramid is characterized by being a business that there is a viable product. If it exists, it has no utility or is much more expensive than the competition. It only holds as long as there are people to enter it. And when people stop investing one day it breaks down.

What is multilevel marketing?

Also known as network marketing, multilevel marketing is one with a business model of distributing products and services  MLM Software where earnings can result from the effective sale or recruitment of new salespeople and participation from the results of recruits.

The network or multilevel marketing system has some advantages for everyone involved, including greater flexibility for participants. Some of the advantages of this system for the participants are:

·         Consumer: possibility of having a differentiated service and with greater convenience;

·         Salesperson: flexibility of schedules, often allowing this activity to be performed without full dedication, providing an extra income;

·         Direct sales company: a very effective way to reach a larger consumer audience, expanding the geographical distribution of its products.

It is worth remembering that the multilevel marketing system is a strategy of corporate distribution of any segment of goods and services, MLM Software in India where the disclosure of products is given by the indication made by independent distributors or the Internet.