How to tell the difference between a legitimate Network Marketing business like Xyngular® and a disguised pyramid scheme

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Occasionally Xyngular Distributors will meet someone who wants to join Xyngular but is extremely cautious or has a trusted friend or family member who needs you to explain the difference between a "pyramid scheme" and a legitimate Network Marketing opportunity.
The difference is in the goal. Pyramid schemes want to make money from you (and fast). Legitimate Network Marketing companies want to make money with you as everyone builds their business together selling products.

A great way to tell the difference is to ask these three questions:

1. What does it cost to become a Distributor?
If there's a huge startup cost, it may be a pyramid! The start-up fee at Xyngular is small (only $15). We want to make it easy and inexpensive for you to start selling and making money right away. Pyramid schemes, or pyramids disguised as MLMs, on the other hand, make most of their profit by signing up new recruits. The cost to become a Distributor is usually high. Caution: pyramids often disguise entry fees as training fees, extra back office services, sales tools, a large inventory, etc. These fees may not be expensive or "required," but there will be a lot of pressure to "take full advantage of the opportunity." 

2. Will the company buy back unsold inventory?
If you could be stuck with unsold inventory, beware! Xyngular doesn't even encourage stocking inventory because it's so easy to order. The only reason to start with a 360 PV order at Xyngular is so you have experience with all the products and so you have samples to share and get started. Xyngular has an unconditional guarantee. Customers and Distributors have nothing to lose.

3. Are the company's products sold to consumers?
If the answer is no (or not many), stay away! The success of Network Marketing (like other retail methods) depends on selling products to consumers. This requires competitively priced, high quality products like Xyngular's. Pyramid schemes, however, are not very concerned about sales to customers. Profits are made on sales of expensive inventory to new recruits. They buy the products, not because they need them or because they are competitively priced, but because they have to buy them to participate in the scheme. 

Warning signs
• Pressure to sign up too quickly
• Promises of extremely high or guaranteed income
• Easy money for hardly any work at all
• A huge up-front fee which is higher than the value of the products, kits or training
• A large fee payable before you receive anything in return
• An unwillingness to share income disclosure documents 

How to assure your prospects that Xyngular is a solid opportunity
1. Encourage them to take their time. Assure them by saying, "Don't let me rush you. Xyngular is not going to disappear overnight. I'm not telling you to get in on the ground floor because people who join later will be left out in the cold. It's because those who join after you will be included in the bonus pool income you will earn."
2. Encourage them to ask questions:
• About the company and its officers.
• About the products — their competitive cost at retail and online and the size and growth of the market.
• About everything included in the enrollment fee and their initial order.
• About the company's product guarantee.
• About the average earnings of active distributors.
3. Download and show them all the company literature available in their back office.
4. Have 3-way calls with your upline and even with customers who have had experience with Xyngular and its products. Assure them that the products are actually being sold to customers.
5. Suggest places to look to confirm what you've told them
• Direct Selling Association
• Your local Chamber of Commerce
• Better Business Bureau
• Public library
• Nearby university
• State Attorney General's Consumer Fraud Division
• National Fraud Information Center
6. Have them ask themselves, "Would I buy this product if I only wanted to take advantage of the opportunity?" If the answer is no, they need to think twice about the opportunity. 

ACTION STEPS:
 
1. Prepare a fact sheet with information from this article or something from the Direct Selling Association explaining the difference between a legitimate opportunity and a pyramid scheme.

2. Prepare a list of questions you'd be happy to answer about the company, its leadership, the products, start-up fees, realistic costs of doing business, average earnings of distributors, return policies, and anything else you feel they may be concerned about. 

3. Download copies of all important company literature from your Back Office. Either show it to them or give them copies to read.

Visit:
http://www.xyngular.com/lrivera

http://www.leonardo-rivera.com

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