pyramid“You sell pyramid schemes“. If you’re in network marketing, perhaps you’ve met people with such claim.

There are many uninformed people out there that do not know the difference between legitimate network marketing and pyramid schemes – this is how you set them straight:

Any business is a pyramid. Even the government is a pyramid!

You see, people tend to associate network marketing and scams, coupled with the old perception of “a pyramid scheme”. However, once they separate the “pyramid” from the “scheme” part, they are able to look at it objectively.

Anyway, getting back to the pyramid structure in business…

Let’s say you are looking at a chain store:

You have the CEO on top.

Beneath him or her you have a few heads of departments.

Beneath them you have divisional managers.

Beneath them you have regional managers.

Beneath them you have store managers.

Beneath that you have the workers…

It’s a PYRAMID….!!!

ANY corporate structure, including the government, works that way.

The only difference with this pyramid is that most of the workers at ground level have NO CHANCE of ever making a decent salary. Positions at the top are limited, and hard work is no guarantee that you will ever get anywhere.

The problem with a pyramid, however, happens when it becomes a SCHEME – or a Ponzi scheme as they call it nowadays. It becomes a scheme when there is no real value in the products you buy (over-priced or useless).

There are some MLM and network marketing programs that are not really about the products, but which simply use the products to “make it legal”. Then there are programs where many people buy the products or services without worrying about the opportunity…

Those are the legitimate ones. In fact, some MLM‘s even expect you to sell a number of product units to consumers BEFORE you can even start marketing the opportunity.

Does that sound like a pyramid scheme?

No.

It is a different way of doing business, and it might be a pyramid – but it is NOT a scheme.

So – if someone accuses you of selling pyramid schemes, tell them:

“But YOU WORK for one!”

You will immediately have that person’s full attention, and then you can explain what you mean. 

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