Pyramiding is a non-sustainable business model that involves promising participants income primarily for enrolling other people into the scheme, rather than from any real sale of products or services to the public. Pyramid schemes are a form of fraud and are illegal in many Countries including the Philippines . (en.wikipedia.org/wiki/Pyramid_scheme) There is a very basic and simple parameters in gauging legitimacy of a Business Model used by a Networking Company ; • Is there a product with real market value and a compelling reason to buy? • Is commission paid on the sale of the product and not on recruitment of people? The DSAP and the DTI have formulated an 8 point rule on its ANTI-PYRAMIDING CAMPAIGN, to determine legitimacy of A NETWORK MARKETING operations. If the answers to those questions are yes, then you are assured the Business Model used in paying commission is Legal and Legitimate and conforms with the DSAP and DTI guidelines. 1. Is there a product? 2. Are commissions paid on sale of products and not on registration/entry fees? 3. Is the intent to sell a product not a position? 4. Is there no direct correlation between the number of recruits and compensation? 5. If recruitment were to be stopped today, will the participants still make money? 6. Is there a reasonable product return policy? 7. Do products have fair market value? 8. Is there a compelling reason to buy?
Posted on: Mon, 05 Aug 2013 12:25:39 +0000
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