Tuesday, July 19, 2011

Not all Network Marketing Opportunities are Illegal Pyramid Schemes

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Copyright © Neksummi Matthias

It can be tempting to dismiss all networking marketing opportunities as illegal pyramid schemes because of the sheer numbers of so-called network marketing businesses that do, in fact, cross the line.

I refer to them as “so called” network marketing because they’re not REAL network marketing at all. It’s common practice for shysters and fraud to pose as a legitimate business model in order to deflect scrutiny and deceive their prey.

Jumping to premature conclusions can lead to serious error in judgement. The key always is to find the accurate perspective that reveals the truth of the situation.

Pyramid Features
• Each level in the pyramid pays for the right to sell the products and recruit sellers below them.
• Each level of the pyramid has the right to buy products from the level above them at a discounted price and sell it at a higher price to the level below them.
• No one in the pyramid can by-pass any level above them. They’ve locked into their position in the pyramid.
• As prices increase at each level down the pyramid, the level finds it almost impossible to sell the products at such a high price.

If you check the classic features of illegal pyramid selling scheme, you’ll find most of them in this example. So is it reasonable to assume that this is an example of an illegal pyramid selling scheme?

Not in this case. What we’re looking at is the typical sales and distribution system used by the telecoms industry in Nigeria for selling recharge cards.
• The company sells the right to print and sell its recharge cards to its major dealerships.
• The major dealers on-sell the right to print and sell the recharge cards to smaller dealers at a profit.
• The smaller dealerships who also pay for the right to print and sell these cards, on-sell the recharge cards to local recharge card sellers who are in two categories;
1. Those with bigger shops who also on-sell the cards to smaller sellers who sit under umbrellas by road sides and also to the final consumer.
2. The smaller sellers who also sell to the final consumer.
• The smaller sellers find it almost impossible to sell the recharge cards for any profit at all. That is why in many places such sellers have to sell N100 cards for N110 if they are to make any profit out of them.

So why isn’t this well-established system illegal? Almost all of the features of an illegal pyramid selling scheme are present. More than in most network marketing businesses, in fact. Is there some kind of double standard being applied here?

The bottom line is quite simple: the pyramid structure has nothing whatever to do with whether or not a business is pyramid selling scheme. EVERY legitimate organization, from governments to schools, the military, churches, sports teams, essential services, charities, hospitals – you name it, it has a pyramid structure, for the simple reason that it’s the ONLY organizational structure that works transparently and accountably!

Many people who have had bad experiences at the hands of counterfeit MLMers brand all network marketing as illegal pyramid selling. Understandable, but about as rational as salesmen because of a bad experience with an incompetent or unscrupulous medical practitioner or a real quack posing as a doctor.

TIG Treasure Resources empowerment program is a cooperative networking. In Nigeria we’re not new to cooperative societies where people come together, put resources together for their common good. They can structure their society in whatever way they feel will be of most benefit to them. TIG has structured its program such that participants will employ cooperative networking to empower one another. What is illegal about this? And for their ideas, initiative and coordination of the program, they are pocketing less than 15% of each contribution made. Is that too much?

Be wary of jumping to hasty conclusions. Illegal pyramid selling is about motives, attitudes and practices, not organizational structure. TIG’s motive is to make capital available for her members to boost their existing businesses or help them boost their businesses.

I hope I’ve been able to dispel the notion you had that TIG is an illegal pyramid scheme. TIG Treasure Resources Ltd is a credible organization managed by people of integrity who are helping us coordinate this network contribution effectively and transparently. Do not be left out of the good thing happening to Nigerian residents. Many participants have regretted dragging their feet. They wish they had joined the very day they first heard about TIG. You can avoid regretting by taking action now. I know people who are making as much as N250k every week! Delicious.

About the Author:
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Neksummi Matthias believes "I can achieve all of my goals if I help enough other people achieve theirs!" He believes in running his business without all the deceit that characterize many businesses today. Registration in TIG for now cannot be made online. This means that the registration has to be made offline. You can reach me on 08073639975 or 08063306838 so we can arrange on how I can get you registered.
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2 comments:

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