Network Marketing companies have been around since the 1960s with companies selling household goods at wholesale prices through the mail. You've probably seen acouple different presentations of these companies selling everything from shampoo, vitamins, health products, and travel.

But we've also heard of the horror stories of pyramid schemes since the 1980s. Since then, they've been outlawed. But even today when someone is shown a Network Marketing presentation, it is common to confuse them with pyramid schemes. So what is the difference? Let's look both of these up on

Wikipedia.

"A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or serviec being delivered.

Pyramid schemes are illegal in many countries, including the United States, United Kingdom, Austraila, and New Zealand. These types of schemes have existed for at least a century."

"During the presentation, little to no information offered about the company unless an investor purchases the products and becomes a participant."

"Over 90% of the people who get involved in pyramid schemes never recoup their initial investment."

"The people on the bottom level of the pyramid, no matter how shallow or deep it goes, will always lose their money. It is easy to see that the number in the bottom level of the pyramid always exceeds the total of all those in the levels above no matter how many levels there are. If each level must recruit six more below them, the ratio of losers to winners is close to 5 to 1 - ~84% of all investors will lose their money. The pyramid in reality would not be perfectly balanced and some members might be able to partially fill their number of recruits, but the same principles apply."

So, if a Network Marketing Company has no product or service, that is the most obvious sign it is not a Network Marketing Company. It is a pyramid scheme. If they don't mention anything about their own company's history, that is sign number two.

But the reason today's network marketing companies are labeled by some people as pyramid schemes is because they require work and dedication to earn money. Some become involved in a new company, thinking money is going to be made for them, or false promises are made. They become bitter by their experience and call it a scam, and tell their friends it's a pyramid scheme, not knowing what a real pyramid scheme is, and too ignorant too find out.

"Network Marketing is a business model that combines direct marketing with franchising."

Multi-level marketing businesses function by recruiting salespeople (also called Distributors, Independent Business Owners, IBOs, Franchise Owners, Sales Consultants, Beauty Consultants, Consultants, etc.) to sell a product and offer additional sales commissions based on the sales of people recruited into their downline, an organization of people that includes direct recruits, recruits' recruits, etc. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager, but in some MLM programs, there can be seven or more levels of people receiving royalties from one person's sales."

Multi-level marketing has an image problem due to the fact that it is often difficult to distinguish MLMs from illegal pyramid or Ponzi Schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as legitimate MLM businesses."

Brian Pilzer, a business investor and author, wrote a book called 'The New Millionaires' estimating in the next 10 years, 10 million new millionaires will be formed through home businesses. And what is the most common home business? Network Marketing Businesses.

Donald Trump was asked back in 2002 on a talk show if he lost everything and he had to start from scratch, what would he do? The audience was rived to their seats wanting to know Donald's secret so they could follow it and make their own millions. Trump responded "I would find a great Network Marketing Company and get to work.' The crowd booed. Yes, the crowd was so disappointed they booed Donald Trump. Donald Trump stood up from his chair and addressed the audience "That's why I'm up here and you're down there!"

Robert Kiyosaki, a well-known businessman, educator and author of the 'Rich Dad Poor Dad' series about what the rich teach their kids that the poor don't. He has sold 28 million of his books in the last 10 years. He praises Network Marketing because in his early 20s he was a door-to-door salesman that sold Xerox copiers. Quite possibly one the hardest sales jobs in the history of selling! But he says he wishes he knew about the Network Marketing system back in his 20s. He says he would have made his millions much much sooner!

Dr. Charles King, Professor of Business and Marketing at Illinois State University praises Network Marketing so much, he teaches it in his classes. Click here to watch a video of him expalining the pluses, minuses, and the absolute truth about Network marketing.

There are many respectable network marketing companies out there today. Acouple had their hick-ups with the law, as most big corporations do, like Amway was found guilty of price fixing (by requiring "independent" distributors to sell at the low price) and making exaggerated income claims. But that was back in 1979.

If becoming involved with a network marketing company intrigues you, do your research on the company, the products, and it's history. It is easy fantasize about becoming successful in network marketing as you watch their presentations, and achieving it is very possible, but it is not easy.

But for me, working a 9 to 5 job, with bottom dollar salary or hourly wages; plus, egotistical supervisors and insane work hours until I'm 65 (it's called employment)... that's far, far more difficult than to succeed in a Network Marketing Company.

I am a Network Marketer. I wrote this Hubpage because I noticed there isn't one here about the pluses, negatives, and whole point of network marketing companies. I believe everyone should be educated about them whether or not you have an interest in being involved as a customer, a representative, or a leader in business.

Thank you for your time and if you have any interest in the best network marketing companies on the internet today. Please click on this link and sit back and relax with your computer and get ready to see the biggest opportunity of your life.

And check out a related Hubpage for more infomation - 'How to select your Network Marketing Opportunity'