Is Network Marketing a scam?

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Hugh Charles
6 years ago
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1 Page 1 of 6 Is Network Marketing a scam? Dear Reader, It is not a scam of itself to pay a fee up front to be a new customer to consume a product or service and then to refer new customers in order to earn an income. It simply means that you are a customer with a home business as an associate Independent Contractor (1099) with no payroll tax withholding: not a (W2) employee. The IRS website, second paragraph, reads... Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on WAGES paid to an employee. You do not generally have to withhold or pay any taxes on PAYMENTS to Independent Contractors. (emphasis ours) Click here to verify at IRS.gov: Small-Businesses-&-Self-Employed/ Independent-Contractor-Self-Employed-or- Employee The Federal Trade Commission (FTC) website, 4th paragraph reads after the title... What is a Pyramid Scheme and What is Legitimate Marketing? Some people confuse pyramid and Ponzi schemes with legitimate multilevel marketing. Multilevel marketing programs are known as MLM's, and unlike pyramid or Ponzi schemes, MLM's have a real product to sell. More importantly, MLM's actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. MLM's may pay commissions to a long string of distributors, but these commission are paid for real retail sales, not for new recruits. Click here to verify at FTC.gov: public-statements/1998/05/pyramid-schemes Wikipedia: Pyramid scheme A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services.

Page 2 of 6 Click here to verify at Wikipedia.org: https://en.wikipedia.

.. Is the purchase or sale of a product or service tied in some way to income received from the program?

2 Page 2 of 6 Click here to verify at Wikipedia.org: QUICK TEST: Scam or no scam... Is the purchase or sale of a product or service tied in some way to income received from the program? PRODUCT OR SERVICE NO = SCAM = AVOID = STAY AWAY YES = LEGITIMATE = NOT A SCAM When someone says, "This is a scam," you say... "Tell it to Kiyosaki, Trump, Buffett, Gates and the FTC because I am with them."

3 Page 3 of 6 Watch Dr. Charles King, Ph.D from Harvard University, give an intro below. He is currently Professor of Marketing at the University of Illinois and regards Network Marketing as "...the most ethical business I have ever seen." Please, enjoy this short video with Dr. Charles King now... Click here:

Page 4 of 6 Is Network Marketing a Pyramid Scheme or Scam? Dr. King answers, "Network Marketing is the most ethical business I have ever seen and is a TRUE profession.

some of their line through Network Marketing." "Network Marketing has a powerful concept that can not be found in any other type of employment or career. It is LEVERAGE.

4 Page 4 of 6 Is Network Marketing a Pyramid Scheme or Scam? Dr. King answers, "Network Marketing is the most ethical business I have ever seen and is a TRUE profession. Companies like Microsoft, AT&T, Gillette, MCI, Toyota, Coca Cola, Citibank, IBM, Xerox, General Electric, AOL, Netscape, Oracle, Skytel, Colgate, General Motors and many others distribute at least some of their line through Network Marketing." "Network Marketing has a powerful concept that can not be found in any other type of employment or career. It is LEVERAGE. Royalties and referral sales don't even come close to the LEVERAGE power of Network Marketing. To reach true LEVERAGE, you must reach a situation where everyone has the same amount to gain. This makes Network Marketing the absolute fairest structure available." "The common perception of the pyramid is that the people at the top make all the money and the

Every organization in the world is a pyramid structure. The shape is not the problem.

5 Page 5 of 6 people at the bottom do all the work. It is not with the geometric shape that people have a problem. It is the shape of your family tree, government, to an architect it is the strongest structure known to man. Every organization in the world is a pyramid structure. The shape is not the problem." PICK YOUR PYRAMID: CORPORATE OR MLM "The problem is that in a corporate structure, the CEO has all the LEVERAGE from the efforts from everyone below. A more intelligent structure is where all people have the same opportunity to have LEVERAGE, just as the CEO does. The structure that allows this LEVERAGE for all is Network Marketing."

6 Page 6 of 6 Dr. King advises "Do not keep loyalties just because you are educated in something or have been doing it for a long time." This ends... Is Network Marketing a scam? Independent Contractors... GO TO WORK. top

NETWORK MARKETING SPECIAL REPORT THE TRUTH ABOUT THE INDUSTRY. Donald Trump. The Independent

NETWORK MARKETING SPECIAL REPORT THE TRUTH ABOUT THE NETWORK MARKETING INDUSTRY Network Marketing Networking is a multibillion pound per year industry which is set to become one of the growth industries