Separating the Business Opportunities from the Pyramid Schemes

If you have been thinking about whether you might like to get involved with a direct sales business opportunity on a full time or a part time basis, one of the things that may be holding you back is a concern that you might fall victim to a pyramid scheme. While it is true that there are pyramid schemes out there that are posing as direct sales opportunities, there are also plenty of direct sales companies that offer quality products at reasonable prices as well as reasonable compensation to their consultants. Here are a few tips that can help you to distinguish real direct sales opportunities from pyramid schemes so that you can truly evaluate whether there is a direct sales opportunity that is a good fit for you.

First of all, it is important to understand the difference between a direct sales business opportunity and a pyramid scheme. With a direct sales opportunity, a participant’s main focus is on selling products to customers. Recruiting new participants is likely to be rewarded in some way, but it is clearly secondary to the work of interacting with potential customers, showing them products, and taking orders. In a pyramid scheme, there may not even be a product. The focus is mostly on recruiting other people to become a part of the “business”. If there is a product, it is likely to seem rather expensive for what you get. You may also be required to order a large amount of product right at the beginning.

In a pyramid scheme, the people at the bottom of the pyramid see little to no money. With direct sales, participants may have to pay an entry fee to get started, but in return they get plenty of product samples as well as literature and often even training and support services to help them get their business off the ground. When the participant makes sales, they earn commissions based upon the amount of sales that they make.

Direct sales business opportunities are a good fit for some people. In addition to the above information about knowing how to spot a pyramid scheme, my bottom line advice for anyone thinking of getting involved with a home – based business opportunity is to do your research and make sure that all of your questions are answered to your satisfaction before you get involved.

Photo by DugganArts on morguefile.com.

Comments are closed.