Knowing The Difference

Knowing The Difference
MLM VS PYRAMIDS
Talkin' Scents 101

 

 

When I began my Scentsy Fragrance journey, I had a few people flat out tell me or should I say assume.... "you're involved in the pyramid scheme... good luck with that"... First off... the Pyramid Scheme is illegal.... so I will start off with that.... but I didn't know there were so many skeptics at first in regards to Scentsy Inc., until I started talking about it with family and friends. Their examples, although understood by my part, were uneducated and were not correct.

So I don't want any potential new members to the Scentsy Family (of anyone's team) to feel as though this is the case... I suppose is where I am going with this anyway. I want everyone to be aware of the differences, and why being a part of the Scentsy Family truly does work....Recruiting or not, you can still make money and have fun all at the same time.

So, lets chat....

 

Pyramid Schemes:

 

 

1) Definition of a Pyramid Scheme: A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service. 

 

2) Know that pyramid schemes are illegal! The only people that are able to make money on a pyramid scheme are the people at the top of the pyramid. As stated above, because pyramid schemes offer no product or service, there is no way for the people at the bottom of the pyramid to make any money unless they sign-up new members for a fee.

 

3) Learn the elements of a pyramid scheme: The idea of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. Those that are behind a pyramid scheme will go to great lengths to make the program look like a legitimate multi-level marketing program so be careful. Despite their claims to have legitimate products or services to sell, they simply use money coming in from new recruits to pay off those who invested earlier on.

 

4) Look for other identifiers: Example...Vague descriptions about the company from which your questions can only be answered by signing up and paying the fee... No product or service being offered or a product that sells at a highly inflated price. A majority or all of the possible income to be made comes from the sign-up fee from new recruits, and typically they will reiterate over and over again that their company is "legal".

 

Multi-Level Marketing (MLM): 

1) Understand the difference: Multi-level marketing companies follow a similar concept to a pyramid scheme, which is the common misconception and the reason for the confusion.
There are two significant differences: One difference is that members at any level can make income through the company’s products and/or services without signing up any new recruits. The second difference is that members of an level can earn more than the people who signed them up. and lastly, MLM companies are legal although structured similarly to the pyramid (hence the confusion).

2) Understand Why: The main reason for this type of model is to reduce the cost of advertising. Many new companies do not have this much capital in the beginning. Instead of the company spending hundreds of thousands or even millions of dollars on advertising, the company gives the members an incentive for signing up new members to sell/use the company’s product or service.
3) Know the common elements: This will assure you will have a fair chance to make money from the company: Consultant earnings should be based on product sales and team members, not merely on signing up recruits. he cost for consultants to begin selling company products should be $200 or less, and the company should offer a buy-back policy. Consultants should not be required to buy large amounts of inventory that they can wind up stuck with. Consumers should expect multilevel-marketing consultants to identify themselves, the company they sell for and the products they are selling. Consultants should expect the same from multilevel-marketing companies. Consultants should provide a consumer with a receipt after a sale and should promptly end a product demonstration if asked to leave.. meaning, no pressure sales.
FYI - this is a partial list 
4) Be prepared to work.. As is true with any venture, your income will depend on the effort you put forth to be successful. You can work an MLM business in may ways, whether as a hobby, a part time job, or to build a team of your own.... So you choose the directing in which you wish to take this business! You don't HAVE to build a team to earn an income... but you can if you'd like!


Also, just to add to that.... these MLM companies will follow the DSA's guidelines if they are a legitimate business, so please feel free to look up the DSA online for more information!



Lets just recap... because any company that promises you money for doing nothing is not being honest with you, lets face it... that's just a load of bologna, and you know it!

 

All my love,
Brittany Gerrity
#ichoosescentsy #ichoosescentsyfamily

 

*Info from this article was taken from the DSA, as well as wikihow*