Originally Posted by allanuk

http://www.acnintegrity.eu/acn/uk/in...ts/report4.jsp

Pyramid Selling

A pyramid selling scheme is any business where the primary form of compensation is derived from the fees that others pay to join the business, rather than from the sale of products or services to end consumers. These schemes are illegal and alongside “pyramid selling” these schemes have also been described as ‘chain letters’, ‘snow ball schemes’, ‘chain selling’, ‘money games’ and ‘investment lotteries’.

It is important to remember that legitimate network marketing rewards independent direct sellers for the distribution and sale of products and/or services to customers. No money is earned merely by sponsoring additional independent direct sellers into the distributorship.

Thus, network marketing offers independent direct sellers the opportunity to build independent businesses marketing, promoting and selling products and/or services to customers and to train an organisation, or network, of other independent direct sellers to do the same.