Many are wary of online business, especially when they are promising a high ROI. Some of the first questions that cross the mind are, is this fraud?, How risky is it? And once it involves them introducing or rather recruiting someone, most usually loose interest in it. Let's look at how to identify two of the recruitment system that has gone rampant online today.

Having partaken in the two system in recent years, here's what I have to say about them.

PONZI SCHEME
Ponzi scheme promises and in a case where the organizers are being honest do pay Investors (in part or in full) only from the Investment of those who they (Investors) recruit into the system. In other words, when there's a case where an Investor could not recruit after investing, he/she can never retrieve such Investment. This makes it a no no for smart Investors and in most countries illegal.

MULTILEVEL MARKETING (MLM)
Multilevel Marketing (MLM) on the other hand is a system used by most companies to entice their distributors (marketers) to recruiting new members (distributors) that will market the company's product. Here, distributors are paid certain percent from each product sale their downline (new recruit) makes for the company while their downline earns a much greater percent in comparison. This system has helped many companies gain more distributors as every distributor is entitled to direct and indirect sales commission. MLM when practice in this case is of great benefits to investors (the distributors) as making sales a times can be tasky, though most of these companies offers free business training.

Unlike ponzi scheme that pays you from an investment made by your downline, in MLM, you get paid (indirect commission) from sales made by your downline.

Did I speak your mind?
What do you think of both system?
Have you benefited from any of them?

Comment your thoughts or you can chat me on the number below to discuss your take on the information I've shared here.
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