What is the difference between a piramid scheme and Tupperware’s business?
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The difference between a pyramid scheme and multi-level marketing is the reason one is a crime and one is not.
In a pyramid scheme, you collect investments with a promise of unrealistic returns. In order to pay those returns, you must collect more investments. If you don’t collect enough money, you can’t pay out the claims against your investment. The people at the top of the pyramid owe more than they can pay out. This is true right from the beginning. When that gets called out, either because too many people want their money or too few people buy into the scheme, the scheme collapses instantly.
In MLM, you aren’t ever in a position where you owe more in claims than you earned in revenue. Your business model is still dependent on bringing in new recruits, but they don’t have any claims against you of promised returns. If they don’t bring in more recruits, they just don’t make any money. The people at the top of the MLM don’t owe more than they can pay out. It’s never in a position to collapse like a pyramid scheme inherently is.
The difference between a pyramid scheme and multi-level marketing is the reason one is a crime and one is not.
In a pyramid scheme, you collect investments with a promise of unrealistic returns. In order to pay those returns, you must collect more investments. If you don’t collect enough money, you can’t pay out the claims against your investment. The people at the top of the pyramid owe more than they can pay out. This is true right from the beginning. When that gets called out, either because too many people want their money or too few people buy into the scheme, the scheme collapses instantly.
In MLM, you aren’t ever in a position where you owe more in claims than you earned in revenue. Your business model is still dependent on bringing in new recruits, but they don’t have any claims against you of promised returns. If they don’t bring in more recruits, they just don’t make any money. The people at the top of the MLM don’t owe more than they can pay out. It’s never in a position to collapse like a pyramid scheme inherently is.
They are both essentially the same depending on how they are run.
All MLM schemes have some kind of product, but most have something pretty pointless, like a juice that they claim can do magic. So people generally arent interested in buying the product.
Tupperware just happens to also be a good product, so a lot of the sales people do well by signing up people below them, but some also just sell a lot of tupperware directly to people
Tupperware needs sales people just like any retail business. They aren’t signing people up to sign people up to sign people up to sell a worthless/scam product.
Tupperware is a quality product. They sign people up to sell the product directly to consumers. They don’t promise that you’ll be earning 5 figures a month in 6 weeks time. If you decide to sell Tupperware they won’t constantly push you to buy more inventory until you’ve sold what you initially buy.
They are both essentially the same depending on how they are run.
All MLM schemes have some kind of product, but most have something pretty pointless, like a juice that they claim can do magic. So people generally arent interested in buying the product.
Tupperware just happens to also be a good product, so a lot of the sales people do well by signing up people below them, but some also just sell a lot of tupperware directly to people
Tupperware needs sales people just like any retail business. They aren’t signing people up to sign people up to sign people up to sell a worthless/scam product.
Tupperware is a quality product. They sign people up to sell the product directly to consumers. They don’t promise that you’ll be earning 5 figures a month in 6 weeks time. If you decide to sell Tupperware they won’t constantly push you to buy more inventory until you’ve sold what you initially buy.
They are both essentially the same depending on how they are run.
All MLM schemes have some kind of product, but most have something pretty pointless, like a juice that they claim can do magic. So people generally arent interested in buying the product.
Tupperware just happens to also be a good product, so a lot of the sales people do well by signing up people below them, but some also just sell a lot of tupperware directly to people
Tupperware actually has a product that’s actually better than virtually any of it’s competitors. The company is not dependent on recruiting new members to stay in business.
Tupperware needs sales people just like any retail business. They aren’t signing people up to sign people up to sign people up to sell a worthless/scam product.
Tupperware is a quality product. They sign people up to sell the product directly to consumers. They don’t promise that you’ll be earning 5 figures a month in 6 weeks time. If you decide to sell Tupperware they won’t constantly push you to buy more inventory until you’ve sold what you initially buy.
Tupperware actually has a product that’s actually better than virtually any of it’s competitors. The company is not dependent on recruiting new members to stay in business.
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