How to distinguish between normal network company, ie Heading disguised pyramid of pyramid scheme? Should evaluate the following points: The amount of down payment for the right to become a member of the company. What printed and other materials you provide to down payment and are they really that money. Wells Fargo Bank takes a slightly different approach. If not, then most likely you're dealing with a pyramid. Which product offers the company to advance. If it is impossible to sell on the open market or for the money you receive any paper or paper that has value only within a company is a pyramid. How much is being promoted by good (if there is something similar to the product) can be sold on the open market? If you can not at least to return his money or goods to pay back the money personal use of the goods – you're dealing with a pyramid. Does the company have just customers? In essence, a continuation of the previous question. If only consumers are distributors, it means that makes sense to buy products only in order to gain commissions.
This is probably also a pyramid scheme. The basic question: where does the money to pay commission to distributors of the company? If the money is taken from the entrance fees of newly arrived members – run by a company like fire! This is a pyramid. A normal network of money for payment of commission appear only when it performs the actual movement of goods to customers. When there are specific people who take out real money out of his pocket and buy the real thing from a distributor, which he really help.