Have you been scammed? With the proliferation of
networking business in the market today, we
are unable to distinguish the
networking from
pyramiding scam. Networking is a type of direct selling where distributors get his compensation through selling products and the business opportunity. Networking has the product to sell as opposed to pyramiding wherein the person recruited pays a certain fee to the promoter and is promised to get his compensation by a series of recruits and payment of fees to the promoters by others. In the process, the last straw of promoter usually suffers a lot in the event that when a scam is exposed the practice stopped hence, he won’t able to get his pay from the promoter that follows. Pyramiding is illegal because it has no asset backed securities as required when they solicit money, since the company has no solid products to sell they pay commission to people they recruited Other pyramiding companies presented a product but this product usually is just a front because it has no market values which is usually sell at an inflated price. In order to attract participant a pyramiding scam offers a get rich-quick scheme. They lure the participants to a very high profit and could reach a huge income in short period of time. The product which is being sold at US$800. is actually valued at US$400. and claim that they are not only selling a product but also business opportunity. In some instances where there is a promise of no selling involved because they assume that with the attraction of huge income participants would have a repeat purchase. In the end the promise would fail to materialize. These are familiar pyramiding strategy that swamped the market today both online and offline. The true networking marketing requires selling and building acustomer base.