Tuesday, July 05, 2005

Defining Business Structures

Pyramid Schemes - money exchanges hands without a product or service being bought or sold. Illegal

MLM multi level marketing. Member signs up to sell a product and invites others to join their group. When they sign up and sell you get a percentage of their sales (could be residual depending on the company)

Network Marketing - Similar to MLM except the structure of the organization will vary and more emphasis is placed on sales of product/service vs. getting others to join the group.

Direct Sales - you sign up to sell a product (i.e. Mary Kay, Avon)

Matrix - Depends on the company but it could be say a 2 x 2 matrix where you sign up two, they sign up two and so on. A type of payment plan structure.