Wednesday, January 28, 2009

Market America Scam. Is Market America a Pyramid Scheme?

By Mathew S. Robar

Market America has been making a lot of noise lately as an up and coming network marketing company. We will examine if they are a scam or not.

Market America is headquartered in North Carolina and was founded in 1992 by James Ridinger. Mr Ridinger was formerly with Amway.

Market America has made popular a term called the "unfranchise." This refers to the ability for people to basically own a franchise without all the hassle that normally goes into it.

Market America acts as a broker. They start by finding a niche and contracting a manufacturer.

Once the product is ready, Market America will leverage their nationwide sales force to bring the product to market. Pretty cool idea actually.

So, how about the business opportunity? Market America is a network marketing company. For those unfamiliar with the concept, each business owner, or "unfranchise" owner will develop their own business by recruiting more people into the company.

What this does is use the concept of leverage once again to drive earnings for the person at the top. Now Market America also uses a BV or Business Volume system to determine payouts.

This Bv system work inside the comission structure to determine your payout. You will get paid depending on how many products are sold and how much bv is accumulated.

You should also know, that as in other network marketing companies, you are encouraged to buy products and begin recruiting from within your "warm market" which typically includes your family and friends.

If this is the type of business structure you see yourself in, then Market America may be a good fit.

Market America is not a scam. They are in fact a legitimate business that sells products.

It is not up to you to decide if you would like to work inside of that structure.

Good Luck out there!

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