Author – Admin- Strategy India<\/p>\n
\u2022 Genuine Direct selling companies – the distributor\/s earn their commissions only when the products or services are bought by them to consume themselves or to sell to others.<\/p>\n
\u2022 Ponzi Schemes – the earning to the network depends on new recruitments.
\n\u2022 Genuine Direct selling companies – the products promoted have established market value.
\n\u2022 Ponzi Schemes – products which are very cheap to produce and have no established market value. It means that the person who is not related to the business would not purchase the product at the price the company is promoting it at.
\n\u2022 Genuine Direct Selling companies \u2013 the cost of entry (the cost of beginning to trade in a particular market for the first time) is quite low.
\n\u2022 Ponzi schemes \u2013 the cost of entry is quite high.
\n\u2022 Genuine Direct selling companies \u2013 also may have an exit option.
\n\u2022 Ponzi schemes \u2013 do not have an exit option.
\n\u2022 Genuine direct selling companies \u2013 a newly joined person can earn more than the person who had joined above and\/or earlier than him.
\n\u2022 Ponzi scheme – the person who had joined earlier makes most of the money.
\n\u2022 Genuine direct selling companies \u2013 focus on sales of products\/services and therefore have good amount of product trainings.
\n\u2022 Ponzi Schemes – focus on meetings which get them new members.
\n\u2022 Genuine direct selling companies \u2013 their business model is based on retailing of the products\/services to the consumer and rewarding the distributors equaling to results.
\n\u2022 Ponzi Schemes – have no commercial, legitimate function, and no real trading takes place. The money from new members is distributed among the ones joined earlier. In other words – Money Circulation or Money Rotation.
\n\u2022 Their claim to generation and distribution of money is from external sources like Forex trading, trading in commodities, Stock market, Surveys, Blogging, Time shares, Emu farming, Goat farming, investing in gold or land, etc.
\n\u2022 Genuine direct selling companies \u2013 have compensation plans which pay out (from the margin allocated per product for distribution to the network) their network of distributors on the basis of sale of products.
\n\u2022 Ponzi Schemes \u2013 take money from people against promise of a high returns in the future. Their compensation plan is unsustainable since it assures returns which fully depend on getting investments from new members.<\/p>\n
Note: Though a direct selling company may have all the features of an ethical company with a viable business model. But actual intent can only be discovered by doing a forensic audit by a team experienced in direct selling forensic audit.<\/p>\n","protected":false},"excerpt":{"rendered":"
Author – Admin- Strategy India \u2022 Genuine Direct selling companies – the distributor\/s earn their commissions only when the products or services are bought by them to consume themselves or to sell to others. \u2022 …<\/p>\n","protected":false},"author":313,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/posts\/24083"}],"collection":[{"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/users\/313"}],"replies":[{"embeddable":true,"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/comments?post=24083"}],"version-history":[{"count":0,"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/posts\/24083\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/media?parent=24083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/categories?post=24083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.strategyindia.com\/blog\/wp-json\/wp\/v2\/tags?post=24083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}