The phrase Ponzi Scheme gets thrown around a lot when people are putting down the business of Network Marketing. Being a Network Marketer myself I take offense when people characterize my business as a Ponzi Scheme. This is because plain and simple a Ponzi Scheme is illegal while the Network Marketing business I run in completely legit. I do not blame people for thinking these two concepts are one in the same based on the misinformation that is spread on the World Wide Web.

A Ponzi Scheme us a fraudulent investment that pay its investors with money paid by other investors. It is named after a man named Charles Ponzi. These schemes are usually uncovered based upon there abnormally high returns they provide investors. On the other hand a Network Marketing business involves selling and/or marketing real good or services for a competitive price. Ponzi Schemes

do not last for a long period of time due to people uncovering the fact that there is no substance to where all of these astronomical profits are coming from. It is quite simple the more investors that become involved increase the chances that authorities could be informed of a Ponzi Schemes fraudulent practices. A Network Marketer never has to worry of such problems because they have their business systems and products that give their business credibility.