Pyramid Schemes and Multi-Level Marketing

If you wish to work in financial services like insurance, real estate, mortgage insurance or any other organization that employs multi-level sales or marketing, you need to understand the difference between a perfectly legal marketing structure and what separates it from a highly illegal pyramid scheme. Investopedia explains pyramid schemes and multi-level marketing here and here.

If you’re thinking about a multi-level marketing opportunity, you need to understand the organizational structure of the company you represent and be able to explain the difference to your customers and the people that you invite to join you. Yes, you will want to hire your own agents to sell the products with you. You can read “Learn to Distinguish Between MLM and Pyramid Schemes” from thebalancesmb.com here. Jennifer Fong, a leader in the direct sales industry, lays most other accusations leveled at multi-level opportunities to waste on Quora.

Multi-level marketing is not for everyone and it is certainly not a get-rich quick scheme. Like starting any business, you have to put in the work. There’s usually some training and the cost of that training and licensing is often paid by the company. Silk City Recruiting is licensed* to find the best agents to market financial services. If you can tell the difference between multi-level marketing and a pyramid scheme, you’re well on your way to seeing opportunity and being able to share that opportunity with others. Contact us to learn more.

 

*NJ Dept.  of Banking & Insurance License 1645253, Arkansas Insurance Department License 18459835