Pyramid Schemes and Ponzi SchemesYou are thinking about starting a Home-based Business and it seems everyone you are interested in has scam or Pyramid Scheme or Ponzi scheme associated with it. You know there has to be something legitimate out there, but it doesn’t seem likely the more you search the Internet.

Well my friend, let me assure you those legitimate business do exist, for example Empower Network, Numis Network, and Ignite Energy, but in doing your due diligence, lets look at Pyramid Schemes and Ponzi Schemes so, if nothing else, you have concrete knowledge of what they truly are.

Pyramid Schemes vs Ponzi Schemes – Which is What and Who is Where?

The two terms seem to be used interchangeably, so just what are they and how do they differ? The following is from the SEC’s website (http://www.sec.gov/answers/ponzi.htm) and italicized words below are direct quotes:

“What are some of the similarities and differences between Ponzi and pyramid schemes?

Ponzi and pyramid schemes are closely related because they both involve paying longer-standing members with money from new participants, instead of actual profits from investing or selling products to the public.

Ponzi Schemes – Characteristics

In the Ponzi Scheme arena, typically investments are the vehicle used. Participants will “earn high investment returns with little or no risk by simply handing over your money; the investment typically does not exist.” There is no “No recruiting necessary to receive payments” as the Ponzi scheme again, typically, has a “Promoter generally acts directly with all participants.”

Pyramid Schemes – Characteristics

Now, lets get a definition of what is known as Product Pyramid Schemes. This is from the website How Stuff Works (http://money.howstuffworks.com/pyramid-scheme1.htm) and italicized words below are direct quotes:

“A product-based pyramid scheme is the same concept disguised as a legitimate direct sales opportunity. Here’s how it works:

  • A distributor recruits 10 salespeople who each pay $500 for a starter kit of products to sell.
    The distributor gets 10 percent of each starter kit that’s sold.
    The distributor also gets 10 percent of each product that any of his recruits sells, including more starter kits.
    The recruits are told that the fastest way to make money isn’t by selling products, but by recruiting more people to buy starter kits.
    The people at the top of the pyramid get commissions from everyone in their down-line, the many levels of recruits below them on the pyramid.
  • Pyramid Schemes and Ponzi Schemes Now Unveiled

    So there you have it, the information you need to evaluate the Pyramid Scam-iness of your Home-based business ideas. But from the Home-based business analysis view point, how does Empower Network totally remove those concerns? What is it about the Empower Network opportunity that addresses or solves those possible issues? Well lets go…

    Empower Network offers an Amazing Product

    The Empower Network has a Basic entry level that immediately grants a home based entrepreneur access to a High Page Ranked, High Authority (see image below), and Highly Trafficked website. It also has available essential training. There is not a forced buy in price. For example there are also two other levels of entry available; an Inner Circle at $100 per month where bleeding edge marketing techniques and training are made available, and a one time $500 purchase for a “taped” Marketing Seminar given in the mountains of Costa Rica.

    Empower Network Affiliate Pay Structure – Flat as a Pancake

    With the Empower Network, everybody and their brother are not getting a “piece of your action”. In fact the only time your sponsor gets involved is when there is a “pass-up” sale which is clearly defined in all the presentations and literature (fyi, they are 2, 4, 6, and then every 5th sale). In fact you are getting 100 percent of the price of the product you sell. There are few if any plans like that much less any kind of Ponzi Schemes or Pyramid Schemes.

    Empower Network Direct Payment – Impossible to be a Pyramid Scheme

    Here is the real key to Empower Network not being or ever being (or ever having been for that matter) one of those Pyramid Schemes or Ponzi Schemes.

    All payments for products are made directly to the affiliate.

    That alone sets Empower Network apart. In Pyramid Schemes or Ponzi Schemes all monies go to some sort of centralized place, from which payments based on bogus investment returns or influx of new victims is paid out. This absolutely cannot happen in the Empower Network. On an affiliate’s sale of an Empower Network product, “Corporate” gets notification that a sale has been made and the affiliate get 100% of the money deposited immediately into their account (within the limitations of the merchant account agreement) .

    To get the benefits or to discover what the Empower Network can do for your home-based business venture click on Empower Network Review. Now.

    To your Success,

    Hunter D Williams

    http://www.huntersmlmplaybook.com

    P.S. For another discussion of Empower Network, or an Empower Network Review, visit my blog post here.

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