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Pyramid Scheme

Network Marketing A Pyramid Scheme?

If you’ve spent any time in network marketing you have no doubt heard it called a pyramid scheme. There are numerous websites designed to “help protect you” from these schemes!

The individuals who produce this information often show you formula as to why it will never work. You know, that we would eventually run out of people to recruit.

Anyone who has been doing this for awhile will tell you based on their own experience that it is impossible to recruit everyone. Not everyone wants to start and run their own business…

…At least not at this point in time. Some may never try to start and many others will start and stop numerous times in their life. How many business have you been involved with?

One factors that many who portray network marketing as a pyramid scheme have overlooked is that…

…Today we have more network marketers bugging other network marketers trying to convince them to switch from their business over to their business.

Like most things in today’s new world economy network marketing is shrinking not expanding. Therefore making the pyramid scheme looking even more impossible.

A few weeks back I was talking to a fellow network marketer I’ve known for years, he had been focusing on facebook and other network marketers.

I found it interesting when he said that 1/20 where ready for a change – looking for something different, and that is ok. So your probably think wow 1 out of 20 are looking for something different…

…And, you’re ready to rush right in there and start chasing them. Yet, just because they are considering the possibility of change it does not mean it will happen or that they’ll join you.

There goes that thought of building the ultimate pyramid once again with you on top.

Network marketing works, but only for those who actually work at it. But, like everything else in sales and marketing there are to many factors that prevent it from becoming the ultimate pyramid.

The sad truth though is, it is often difficult if not impossible to change someone’s mind about whether network marketing is a scheme or not.

One of my favorite quotes illustrates this:

The true secret of giving advice is, after you have honestly given it, to be perfectly indifferent whether it is taken or not, and never persist in trying to set people right.

-Hannah Whitall Smith

On the other hand, imagine for a moment talking to one of your friends, a family member, or a coworker, and they ask the question about what you do?

How will they respond when you say I spend my time chasing other network marketers trying to get them to join my business. Will their perception of what you do as nothing more than a network marketing pyramid scheme?

4 Comments… add one

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4 comments… add one
John Michael Cannon May 19, 2010, 12:14 pm

“You succeed by dealing with the world as it is, not the way you would like it to be.” ~Jack Welch

As you know, the diagrams we make up in our heads about how things work (or should work) are often different than how they are in reality.

In the Network Marketing culture, there is the “find three who finds three” ‘formula’ which doesn’t really work out in the real world.

In the anti-Network Marketing culture, the idea that Network Marketing is a scam because the “last” person can’t recruit others is just math on paper. Their ‘formulas’ have no basis in reality. Their dislike of Network Marketing has validity. But often their “proof” is based on faulty assumptions and speculation.

Diagrams or reasoning that doesn’t take into account the human variable, from both parties, is not rational at all. It is ignorance, which is what you pointed out above.

Network Marketers who’s sole focus is recruiting other Network Marketers is just cream of the crap.

Both Network Marketers and Anti-Network Marketers are horribly lost in their understanding of this business. Thank God Leader’s Club exists to point people in the right direction.

Rod Cook June 19, 2010, 2:25 pm

The Anti- MLM Network Marketing fanatics can only slight the Industry by lying! Thank heavens there we websites like this one willing to take these lying shysters on and prove them for what they are:

Trying to be pyramid experts so they make money by being expert witnesses in court cases which provides Taylor..Phd with poor income.

Thanks for the help you are great! Good site!

Rod Cook better known as the http://www.mlmwatchdog.com

Kevin Tan July 22, 2010, 1:59 am

It’s always sad to hear people call network marketing a pyramid scheme. It’s always ironic when I have to draw a corporate picture for them to see what they’re involved in.

best mlm company September 1, 2010, 4:20 am

Very interesting and informative article to be read…

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