Take a good look at this picture. It represents the organisational structure and it looks like a pyramid. Does this mean the organisation you work for is a pyramid scheme? Of course not. If it looks like a pyramid, it does not mean it's a pyramid. So what is a pyramid scheme?
Pyramid Schemes are illegal in most countries including South Africa. They are usually called 'push-push' systems here at home and they offer no product. If there's a product it's value is usually insignificant.
On the other hand, network marketing companies use direct selling as their marketing strategy. Instead of paying advertising fees to big companies they pay them to the masses that market their products directly to the end user.
Network Marketing Companies that have nothing to hide are registered with Direct Selling Association (DSA) [www.dsasa.co.za]. We have extracted the following stats from the site: "According to latest industry results released at the DSA Awards Luncheon in May this year, total sales in South Africa increased from R7,152-billion in 2011 to R7,625-billion in 2012 and export sales increased from R657-million to R1,154-billion in 2012, giving an overall industry sales growth of 12.4%."
Take for instance Clientele Life. The company is listed on the Johannesburg Stock Exchange. It advertises its products daily on SABC on various time slots and during Generations on certain days. It also markets via Independent Field Advertiser (IFA), a network marketing programme.
To protect your reputation you may CHOOSE to only deal with companies registered with the DSA.
It should therefore be clear that Network Marketing Systems are legitimate businesses that offer entrepreneurs with no or little capital, a chance to pursue their dreams.
On the other hand, network marketing companies use direct selling as their marketing strategy. Instead of paying advertising fees to big companies they pay them to the masses that market their products directly to the end user.
Network Marketing Companies that have nothing to hide are registered with Direct Selling Association (DSA) [www.dsasa.co.za]. We have extracted the following stats from the site: "According to latest industry results released at the DSA Awards Luncheon in May this year, total sales in South Africa increased from R7,152-billion in 2011 to R7,625-billion in 2012 and export sales increased from R657-million to R1,154-billion in 2012, giving an overall industry sales growth of 12.4%."
Take for instance Clientele Life. The company is listed on the Johannesburg Stock Exchange. It advertises its products daily on SABC on various time slots and during Generations on certain days. It also markets via Independent Field Advertiser (IFA), a network marketing programme.
To protect your reputation you may CHOOSE to only deal with companies registered with the DSA.
It should therefore be clear that Network Marketing Systems are legitimate businesses that offer entrepreneurs with no or little capital, a chance to pursue their dreams.