There are so many arguments about network marketing plans, or multi-level marketing plans, on the question of their legality, legitimacy, and their ethical or unethical nature, but beyond the lingering questions over anything else is whether they actually earn money for people or are they simply a money pit that never grants a dime to the participants. Conflicting stories, urban legends, and fairy tales will always be told regarding these plans, and the only thing you need to do to be sure of anything is to do the right research your self. Making sure you are involved with honest people is probably the biggest safeguard for you, and the better you know them the more confident you can be about venturing into a plan.
All the way back to the beginning of Amway, the complaints of pyramid schemes began to emerge. While Amway was a clear way to earn money for a lot of people, they were ultimately held accountable for some things, including price fixing. When a network-marketing plan fixes prices and forces participants to sell at a low price, it is then an illegal scheme used to force independent businesses under their control and make untrue income claims. But, they were not guilty of being an illegal pyramid scheme, per se.
The line is a very fine one according the Federal Trade Commission, and while network marketing plans can be illegal, illegitimate, and unethical, they can also be legal, legitimate, and ethical if run properly. To earn money within one of these plans, one must be careful to say the least. From things like Pre-paid legal services to Equinox, Amway, and thousands of others out there, network-marketing plans have been a part of American business for some time now.
There definitely are risks, and rewards, while you try to earn money within one of these plans. Many of these systems have similar styles, with showing you pictures of the founders of the plan who live in the mansion on the hill now with all their disciples striving for the same achievement. These plans may be just what they say they are and offer just what they say, or they may be a pipe dream being chased by thousands before you. Anything that seems to good to be true must be taken on with extreme caution. Although there are some pitfalls, profits can be made with network marketing, and one should not ignore the potential to be someone who can profit from their success.