Q: Is this a pyramid scheme?
The definition of 'scheme' is "a systematic plan of action".
The definition of a 'system' is "an organized set of ideas".
Yes, it is a organized set of ideas in a systematic plan of action. It is a beautiful legitimate system of creating a just, equitable, flourishing and sustainable world!
What you are really asking is, is it legal. Yes, it is legal. Internet marketing is a legal way of doing business that has leveled the playing field for the average person to compete quite successfully with the large corporations. Network marketing and multi level compensation plans were declared legal ways of compensation over 50 years ago.
And it is certainly legal to get together with a few of your friends and devise an investment plan and invest together as a team. Mutual funds and joint venture investments are made everyday and the best way to make money using leverage.
In the business world, whether it's online or offline, there are some unscrupulous owners, but very few. You can't stay in business long operating illegally or unethically. These are all legitimate companies who pay their appropriate taxes just as you are responsible for paying your taxes appropriately from your earnings. They have put a lot of time, money, and pride into their business. I have direct access to the CEO's of the companies I recommend. Write to them and ask them to address any of your concerns. They will be happy to respond.
Q: What is the difference between traditonal Multi-Level Marketing (MLM) and Internet based Multi-Affiliate Programs (MAP's)?
MLM's require, excessive sales, excessive recruiting, purchasing of monthly auto shipments of physical products (that cost more than virtual products), continually updated expensive support material, numerous fee based hyped up seminars, trainings and meetings.
Internet based MAP's, using the InveStworks Model System, require a low affordable monthly subscription fee, and only 3 investment partners for as many companies as you want. Simple - Easy - Achievable!
The most important difference is their type of products. MAP's provide 'virtual' products such as education and business tools via the Internet. This allows for very low overhead expenses. Therefore, they can afford to pay out in the 75-85 percentile range back to their membership base throughout their multi-level compensation plans.
MLM companies sell 'physical, tangible, consumable' products. These companies can only pay in the 50-percentile range back to their membership base. 50% of the money has to go to pay for the actual product, research and development, office expenses, support material (brochures, etc.), storage and shipping, leaving only 50% that can be paid in commissions throughout the various levels.
The Internet has leveled the playing field in the area of business.
It is time for average citizens to get into the field and create money for themselves, their families, and their communities, so they can spend it on things that matter. I am betting that the general public will spend their money more responsibly than corporations or governments. This is why I dedicate my time to getting this information out to the masses.
The concerns and questions below are brought up frequently. I discuss these in my personal presentations and classes. Refer to the recorded training and support calls in the website as it answers many of these too. Also I have 3 DVD Presentations to hold your own gatherings wherever you live. Send a request to Suzanne@investworks.net to purchase the set for $30 including shipping.
Here is a written response in more detail.
1. Be careful of the companies who sell few or no products to consumers (I am thinking of GreenWiz and Cookin-Fun.
I personally prefer simple programs because they are so much easier to do! Remember the Billionaires' Secret. If everyone can participate, you will make far more money than with a limited market. GreenWiz (GW) is a wonderful simple program that is being used by even the poorest of countries! It's like shopping at "the dollar store" where nearly everyone can afford to shop. And you get good value for the money spent.
Cookin-Fun (CF) is another wonderful program founded by the owners of GreenWiz. They have generously created a "recipe club" so that members had another opportunity to enjoy food and make money. Wonderful!
Music Forte was an excellent company selling music and advertising for musicians. Everyone loves music. We hope it will reopen it's multi-affiliate program again soon.
You do not have to use all or even any of the products to receive the commissions as long as you refer people who also subscribe to the service. Think of this as purchasing a subscription from a magazine company that will pay you a 'rebate' (or commission) for people you refer to the magazine who also subscribe. Whether or not you read any or all of the articles, (or use all the tools or virtual products) you will still pay your subscription fee and you will still receive a commission (like a rebate) from the company for new subscribers you refer.
2. Some companies try to make their schemes look like multilevel marketing methods.
Multi-level marketing is the best way for the average person to create wealth. It is a great model system to follow and has been very successful since the early 1900's. This insinuates a concern about ' illegal schemes'. There are a few illegal 'schemes' or dishonest businesses, but they are very few. (Similarly, the majority of people are good, kind hearted and loving. Very few of the population are devious.)
Corporations spend a tremendous amount of time, money, and effort into setting up a business for legitimate profits. Commonly, the majority of the profit goes to a select few of the highest executives. Multi-level companies or network marketing companies set their business up so everyone has the potential to make top level income and several people can share the profit from the same sale!
When you make a purchase from Wal-Mart, only the Wal-Mart Corporation makes money on that sale. Only they get to decide how to redirect that money back to society. If you trade your time for dollars (a salary or a set one-time commission) you are limited in how much money you can earn. You can work only a set number of hours determined by your employer or 24 hours in a day. If you are ever going to rise above adversity in life, you must learn to establish residual income, passive residual income, meaning you do not have to work for it.
MLM's or network marketing companies (whether online or off) pay their distributors or subscribers (equivalent to employees in traditional business) a residual income. They can't make money unless they help many other people make money. If most people were only out to scam people out of money there would be more bank robbers, drug dealers, etc. Most people want to earn an honest living that they can be proud of. Here is a beautiful method of doing so where everybody has an equal opportunity to excel.
3. MLM is a lawful and legitimate business method to sell consumer products.
Yes it is...whether those products are virtual products (via the Internet) or physical products (tangible, consumable products) through offline or direct marketing.
4. MLM depends on selling to consumers and establishing a market. This requires quality products, competitively priced.
Yes, and the same applies to Internet marketing companies. They must have enough market share to make a worthwhile profit. Therefore they must offer good products competitively priced and pay their distributors well or they will quit selling the products and marketing for the company. When enough people quit, the company goes out of business. Internet marketing companies have an easily accessible worldwide market via the Internet with low overhead costs. This is an added advantage. And what better product than education?
5. Pyramid schemes are not concerned with sales to end users of the product. Profits are made on volume sales to new recruits.
Well, you won't get rich by bringing in 3 people in programs that only charge $5-$15 a month UNLESS you continue to grow. At that low of fees you can't make a lot of money unless you have thousands and thousands of satisfied customers who continue paying the monthly subscription fee. There are no long term contracts so members can unsubcribe at any time. So they must keep their customers satisfied to stay in business to sustain their own living.
Internet marketing is better than traditional network marketing, MLM's or product based companies, because usually you start making money from the very first person you refer. Sometimes members make money without ever personally referring anyone by receiving spillover from someone above you!
Even if you never make any sales or personally refer any partners, or make any money, you are still receiving a good quality product for the money spent. For example, Cookin-Fun. You get fun recipes, learn about cooking, growing and preparing food, and can connect to people around the world in a forum offering idea sharing; all for only $10 a month.
Yet you also have the potential to make a lot of money simply by selling a few subscriptions to people who also sell a few subscriptions to people who also sell a few subscriptions. Simply referring others who purchase a subscription and also refer others who purchase. Everybody benefits. This is a perfect FUNdraiser for non-profits. Makes so much more cents (pun intended
:-)) than traditional fundraising. Ongoing residual income month after month from ONE fundraising effort!
Charities do wonderful work but they never have enough resources to do all the wonderful things they would like to do. There is never enough money or people. They always have to beg for help and wear out their staff. Their fundraiser products are generally overpriced and very little money ends up in their bank accounts after factoring all associated volunteer time and expenses.
By using an Internet multi-affiliate network company, these charities could offer virtual education right in the convenience of people's homes 24 hours a day 7 days a week, or in public libraries within their scheduled hours. Not only does the charity prosper by selling these subscriptions but, most importantly, they offer a way for their donors to make money too!
Imagine a school PTA (Parent Teacher Association), or non-profit organization set up to help support their local school with additional funds for greatly needed things to educate their children better, independent of what the governments provide. Our school systems are not adequately compensating teacher salaries, have too large of classroom sizes, hold continual expensive bond elections to raise taxes, while cutting out the creative aspects of education, like the art, music and sports programs.
Instead of traditional fundraising that is not cost or time efficient, with little monetary benefit for the efforts spent, PTA's could offer one of these type of programs like Greenwiz or Cookin-Fun, darling educational programs, or Music Forte, a perfect FUNdraiser for churches and schools.
These are all universally appealing common products people use everyday to bring us life sustenance and joy.
People could subscribe to support not only the entire school district, but also educate themselves on plants, cooking, and, have fun. AND they could make money for themselves while supporting their schools!!
Do you see the enormous value in that?
Let's say the PTA signs up for Green Wiz, for only $5 a month. Then they offer it to the staff, school board and PTA board members on a first come first served basis or in order of heiracrchy. Next they offer it to the parents as a fundraiser. Everyone pays only $5 a month (far cheaper than the higher taxes paid or most fundraising products sold). Whether they use the program or not, they have access to the information if and when they want and they are supporting their school district.
Traditional fundraisers ask you to sell as much as you can to your friends, family, co-workers, etc. They entice kids to sell more by offering prizes to those who sell the most. Many people buy these products even though they don't really want them just to help the school.
Instead , with The InVeStworks Model System, the PTA asks each staff or board member or parent to just 'sell' 3 subscriptions, so not only the PTA will make money, the parent, staff or board member selling those 3 subscriptions makes money too! Ongoing income, month after month, year after year from ONE fundraising effort!
The PTA could easily fill the first 3 levels, perhaps some of the 4th level just from the staff and board members prior to starting the fundraiser. Then offer it to the parents for the usual 2-4 week time frame. Within a few weeks that PTA could easily be earning $1,000 a month, month after month, year after year, increasing over time up to almost $2,000 monthly to support their school and children's education! And this is from just ONE fundraiser!
Can you visualize this with me?
School districts could lower taxes, and discontinue complicated confusing bond elections. There would be plenty of money for top of the line computers, books, art, music, sports equipment, and smaller classrooms. Well compensated teacher's happily teaching kids because they love working with children, and now they have beautiful supportive classrooms of a manageable size with the best teaching tools.
There's more. Not only does the PTA make $1,000 or $2,000 a month, but the staff and parents are earning an income of the same future potential too! How hard would it be to sell a program that costs only $5 a month to benefit everyone in this way?
Or $10 a month for a program like Cookin-Fun to support the home economics class and for a potential earnings of about $3,000 a month?
This is the new way to FUNdraise. This is what The InVeStworks Model System is all about. Should you decide to participate at whatever level using this system, whether you use any of the programs or not, you will be very proud to say you 'got it'. You caught the vision and were a part of it from the every beginning. You will set your goal to succeed because you will want your name in the next book. You will want people to know you contributed and you will want to make a difference in your own circle of influence.
The more you make the more you will have to give. I encourage everyone to give back; 10% of their time and 10% of their money to make the world a better place. And you decide where that time and money should go. Keep 90% for yourself to spend however you wish. Create joy in your life and spread it around to everyone you can reach.
People think the problems of the world are too vast and too complicated to change. I say they are not. YOU can make a difference...every single one of us who unites together to tap into the income streams and spends the money more wisely. It is not only for today it is for tomorrow for our children and their children and their children…...
Never doubt that a thoughtful group of committed citizens can change the world.
Indeed, it is the only thing that ever has. --- Margaret Mead. | 
