Pyramid Schemes vs Network Marketing

If you EVER get the question, "Is Send Out Cards a Pyramid Scheme" here is what you need to know! on January 3rd Jordan Adler had a guest speaker on his call.

He was Dr Ray Jewell. He has a Doctorate in economics and is the founder and senior economist of Highview Management, Ltd. Creator of Financial Freedom Radio.info, a weekly podcast heard all over the world. Dr Ray is the developer of the Personal Economic Coach process and has been coaching clients in Business and Wealth Creation for 30 years. He is a Senior Manager with SendOutCards and has tried other Network Marketing companies with little success until SOC. He is proud to call SOC his home and is actively building a downline.

Specifically in the call he talks about the history of network marketing and about how in economic troubling times, Network Marketing has boomed. He explains the negativity toward Network marketing and the confusion with Pyramid Schemes.

These are the 4 legal tips you need to know to explain the differences between Network Marketing and Pyramids.

1. Is there a product or service that's 'in demand'. In other words the product must be something that people would buy whether it was sold through network marketing or other marketing means

2. Do you get paid for 'Recruiting' - It's illegal to get paid for the act of recruiting distributors. There is no commission paid on our $59 distributor upgrade. The commission is paid on the sale of the $398 wholesale package, which is a product. It's okay to get paid on the sale of a product but NOT on the recruitment of a distributor

3. Can you make more money than the person/people that brought you in? By the nature of our compensation plan, you can 'pass' your upline/sponsor in income . . . if you are not able to make more money than the person that brought you in, it's considered a 'pyramid'. I make more money than my sponsor and many of you make more money than your sponsors.

4. Are you encouraged to buy product to get promoted or qualify for a higher level of income? This is called 'Front End Loading' and it's illegal. If you are encouraged by your upline to buy product to qualify for a promotion or a higher bonus level without the intention or ability to sell the product, this is considered 'Front End Loading' and it's illegal.

This call was really a must hear call and is available on Jordan site in two 15 minute parts at http://instantteleseminar.com/?eventID=16820841.