MLM vs Pyramid Scheme and Matrix
Posted on October 22, 2008 |
What is the difference between MLM, Pyramid Schemes and Matrix?
Pyramid schemes: A Person starts by sending message also known as chain letter to several people. In this message they ask to send him 10$ and then send this message other peoples. On the message you have to add your name before send it to others and each recipient must send money to the first person, to second person to third person …etc. In a pyramid scheme there is no product its just people sending money. It’s called pyramid scheme cause it starts with one and deeper it goes bigger it will bee. On a paper it looks look like a triangle or pyramid.
Forced Matrix: If the number of people who can join under you is limited that it’s a forced matrix. Some people aren’t good on marketing so it would benefit the less talented if they had help from the talented. Sometimes matrix use numbers to describe them, like “5×5 forced matrix” which mean that you can only have 5 people in your first downline. If you will refer anyone else it would go under your first downline. In this way you help them grow too.
MLM – Multi Level Marketing: On paper all the MLM have a triangle shape or looks like a pyramid scheme. But there is a difference between MLM and Pyramid Scheme. In MLM there is a real product being sold. And most of the income is being earned from “commissions”. In Multi Level Marketing the participant always gains from the investment. There are so many products used on MLM and there are so many companies using MLM like their main marketing strategy.
If you are looking for get money fast schemes try matrix. With forced matrix you stand to make money faster but increases in income are slower because your referrals get forced further down from you.
If you are looking to make a residual income try MLM. With MLM you have a strong base. At start income is slow but with time you will get more and more money, income will increase day by day.