Pyramid Schemes Explained

Is this program a pyramid scheme? Many Affiliate Marketers ask that question before starting their businesses. Smart Affiliate Marketers look out for scams. I am going to define a pyramid scheme and how to find integral affiliate marketing companies.

Look Out – A Pyramid Scheme


Back in my younger days, I applied for a job that allowed me to work from home plus promised me a lot of money. Sounds great, right?

When I was on the phone with the salesperson, I was told that in order for me to make money I would have to initially invest money with the company. That was approximately between $500-5,000. Then, I needed to recruit people and have them sign up by investing $500-5,000. The idea was that I would make money by each person that signed up and invested money.

Does that story make you feel nauseous? Well, it made me feel nauseous. I hung up the phone and decided that such a business was not my path in life. Why? This example is a pyramid scheme.

A pyramid scheme is recruiting people and convincing them to invest in a company. Then, in order for the recruitees to make money, they need to recruit more people. The whole business is recruiting people and getting commissions from what the people invested. Pyramid schemes are illegal, so please don’t get involved. You don’t want to end up in an orange jumpsuit.

Pyramid Schemes are different than MLM’s.  To learn about avoiding MLM’s, click here.

Avoiding Pyramid Schemes in Affiliate Marketing


Unfortunately, there are some rotten apples in Affiliate Marketing. These fake companies will tell you to invest large sums of money in order to learn how to be an effective Affiliate Marketer. They promise to teach you how to get leads for your niche. After you invest with that company, the only thing they teach you how to do is to recruit more people into the company and convince them to invest large sums of money.  Should you come upon a company like this…run for the hills!

Ethical Way to Make Money in Affiliate Marketing


A proper affiliate Marketing Company will teach you how to become a leader in your niche. Choose a niche on something you love. Then, the company will help you create a website and write content that will attract visitors to your site. The company cares about you being successful, not just about making tons of money.For instance, if you want to sell Instant Pots. The company will teach you how to write a killer website and write terrific posts that will attract tons of visitors over time. Your excellent content will lead your visitors to pay an Instant Pot using your Amazon Affiliate Link.

My #1 Recommendation for Affiliate Marketing


The best company to learn about Affiliate Marketing is Wealthy Affiliate. Wealthy Affiliate offers state of the art training, training, support from the founders, Kyle and Carson.  Wealthy Affiliate teaches you how to create websites, hosting, and networking, and offers lives classes.  Click here for more info.

Armed with this knowledge, I wish you luck on your Affiliate Marketing journey. Please be very careful before you sign up for any program. If something feels suspicious or too good to be true, it probably is. I would love to hear from your experiences and answer any questions or concerns.

Success to you all!

Shira

HomeBizChief.com