Network marketing is not a pyramid scheme

The consumer affairs column (The Sunday Times, October 16) mentioned "Scams, pyramid schemes worth ignoring". I would like to point out that network marketing is neither a pyramid scheme nor any of its derivatives.

The fact that the network looks like an inverted tree does not make it a pyramid scheme, much in the same way as working in a corporate environment does not make you part of one (have you ever seen a company organigram?)

Unlike a pyramid scheme, network marketing is a perfectly legal method of distribution resorted to by some corporations to advertise products by word of mouth. Which method would work better than word of mouth for health-conscious products anyway? The manufacturer rewards its distributors through bonuses, in the same way as a regular distribution channel spreads value along the supply chain.

Unlike a pyramid scheme, a customer is always going to get value back for every cent he or she spends. Unfortunately, as usually happens, we always tend to dismiss new ideas because we do not feel comfortable making that small effort to listen to what other people have to say.

Contrary to the impression the article may have given, network marketing does not promise overnight riches. However, some people do manage to accumulate fortunes using network marketing by understanding the concept of leverage and building a residual income. This usually happens over several years of hard work, so it is not as easy as one might imagine.

I strongly advise the author to look up information about this type of distribution before rushing to premature conclusions. On the other hand, any scheme which promises overnight riches does not give you anything in return for your money and is not backed by a legal entity is definitely a fraud.

May I ask network marketing distributors who wish to volunteer for a survey I am conducting for my MBA thesis on this subject to contact me at scalleja@bell.net.mt.