What exactly defines a 'product' in today's modern world of online business? In marketing, the term 'product' is the word used to identify solutions a marketer provides to his target market. These solutions can be broadly divided into three categories:

Goods:
Our instinct when we think of goods is that it has to be physical and tangible; something that is felt, tasted, heard, smelt or seen. Before computer technology, this was true but nowadays there is sometimes a fine line between what is considered tangible or not. A product can be in the form of digital media such as software and e-books that are downloaded and often never printed. So, although we may not physically touch, taste or smell them, we do see websites and listen to downloaded music.

In these cases, digital computer code has replaced what used to be a physical item. There doesn't appear to be anything tangible because the presentation, storage and method of obtaining are different. However, it generally offers the same benefit to the consumer so digital media is therefore considered to be a product.

Services:
A service is something a customer obtains through the work or labour of someone else. This can result in the creation of a tangible product such as a freelance writer being employed to write an article but it's the service provided that is actually the product. The key difference between goods and services is that a service isn't stored. It is only available at the time of use such as getting a haircut in a salon. Further to this, the benefit offered isn't always consistent because one salon may offer a better haircut than another.

Ideas:
Something falls into the category of an idea if the marketer offers a concept and attempts to convince the customer to alter their behaviour or their perception in some way. Marketing ideas is often a solution used to get targeted groups to avoid or change certain behaviour. Governments and non-profit groups are good examples because they use public service announcements directed toward activities such as smoking, automobile safety, alcohol and illegal drug use.

The success of my online venture is dependent on other people enrolling in the program but I never sell anything, have any customers or physical products. What I do have though is a concept - an idea for generating income that is new and exciting for many people. It is a legitimate product because it is used to change people's perception when it comes to wealth creation.

I sometimes face objections in my marketing because people think I am operating within a pyramid scheme. According to Wikipedia, a pyramid scheme is 'a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered.' These people claim there is no product involved but fail to realise that products come in different forms. Like so many others, what I do is simple multi-level marketing.

The first part of the above definition reads: "a non-sustainable business model..." The program I promote is not a business or company. It is an online community of people where everyone works together in team dynamics and receives the same opportunity to succeed. There is no structure to build or maintain. In a genuine pyramid, only those at the top profit while those at the bottom never reach the top.

The word 'pyramid' has immediate negative connotations but the structure is common in our daily lives. Governments, every major business and even families are all structured like a pyramid. This natural shape is everywhere which is perfectly fine until it is used illegally to make money.

Robert Kiyosaki, the author of the best-selling book 'Rich Dad Poor Dad' offers an interesting perspective on it. He states that in most pyramids you are climbing a ladder and all you can see on your way up is the butt of the person in front of you. In other words, you never reach the top yourself. You simply fall in behind the person above you and the pace determined by those at the top of the pyramid. To me, that's not a very attractive prospect!

The great thing about multi-level marketing is that you never have to look up at anyone's butt. You have your own business, your own life and freedom. This is a positive thing. If you work for a company you will have a boss and that person probably has a boss. So, you are working in a pyramid shape and guess what? You are at the bottom. Wouldn't you rather be at the top of your own?