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Networking and Pyramiding, unlawful?

Updated on April 22, 2012

Networking and Pyramiding, unlawful?

In the Philippines, the word networking and pyramiding have negative connotations. Generally, when a Filipino hears these terms he always relate it to scams (deception/fraud).

Do you think networking and pyramiding are forms of scam? Basically, these two words are synonymous and they refer to the term leveraging. Leveraging is multiplying. These also refer to Multilevel Marketing (MLM).

Networking/pyramiding is a system being utilized to expand one's business venture. It is called pyramiding because as the business goes on it becomes larger and it looks like an inverted cone or pyramid. Meaning it is not a business per se but it is a mean used to carry out the conduct of a particular business. In short, these are not scams but these are tools being utilized to commit scams. Thus, a networking business with legitimate permits to conduct or perform a particular business in a specified location could not be considered as fraud. However, the term pyramiding relates to the act of deception and no longer defined as a positive word as far as the MLM industry is concerned.

Nowadays, networking is being used by several business undertakings because a networker may earn not only from his hardwork but also from the perspiration of his downlines or members. This compliments one of the popular quotes that goes, " It's better to earn 1% from the proceeds made by group of persons than to receive a 100% earning from the work you personally produced".

Sad to say, due to the success of network marketing, it is now being used as a tool to deceive people by utilizing it as means to attract prospect clients.

Do not denouce or even censure a networking business as long as you are not certain that such business is unregistered.


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