Is MLM a Pyramid Scam?
A good number of people are “sure” MLM (Network Marketing) is a “Pyramid” Scam. For some reason, millions of people work in this industry, and yet they are all getting away with being involved in a pyramid, and the government does nothing?
Perhaps there is more to it than these well-meaning people don’t understand. Here is some information you can give them if you ever run into this, and I promise you will. Why not learn how to handle it, instead of stumbling?
So what do people mean by Pyramid?
Let’s look at the pyramid shape itself, first …
I presume the pyramid objectors are objecting to the idea in this shape, that there are less people at the top of the structure, who earn most of the money, and gobs of poor people at the bottom of this pyramid who earn very little, right?
That is the definition of the “Pyramid Scheme”, or at least the meaning some people put into it.
Let’s review the traditional Business Scheme …
OH NO! Look at all those poor Greeters in this Walmart Pyramid, making much, much less than those above them. Pyramid Objectors, you got your work cut out for you!
To be fair, Walmart is a giant corporation. They apparently get special government privileges to be a pyramid.
So let’s give an example of smaller businesses than Walmart, and see how they are structured …
Not again! Apparently, ALL businesses are pyramids!
Pyramid Objectors – You need to get all business banned, now. Look at all the poor, lowly employees at the bottom making the least amount of money. It’s just not fair! ;)
Obviously, the owner of a company earns more money than the rest. The employees at the bottom level (some say) work the hardest, and earn the least out of this traditional business pyramid scheme, right?
So if what you’re objecting to is the pyramid shape, or the earnings levels of the layers of employees in this pyramid, then any business is a PYRAMID SCHEME, isn’t it?
The irony is that MLM (Network Marketing) is the only “scheme” where everybody gets an equal opportunity to get rewarded for their effective effort and results. Those “below” others, can earn more than those “above” them. In traditional company pay, it doesn’t work that way.
What’s strange to me about the pyramid objection is that it seems indoctrinated from generation to generation. In my 23 years in network marketing, I thought for sure the pyramid objection would finally go away by now, and we’d never hear it again.
Nope. It lives on. So it behooves any Network Marketer to learn to handle it smoothly, without getting defensive. You’re just dealing with somebody’s ignorance is all, and it’s up to us to gracefully deal with it."This is one of those Pyramid Deals" - Handling the Pyramid Objection by Wayne Gerald
Latest posts by Wayne Gerald (see all)
- How big is your Marketing LEVER? Is it only a toothpick? – Marketing Tools - April 7, 2015
- Perhaps the Biggest Unalterable Natural Law in MLM Network Marketing - February 19, 2014
- Why Network Marketing is the Fairest and Fastest Win/Win Organizational Model Ever Created - February 6, 2014
- Toxic People Stop Your MLM Success – 46 Traits to Watch Out For - February 5, 2014