Is your network marketing company a scam or a pyramid. I am sure if you are in network marketing, you have heard this multiple times, and I’m sure if you are considering network marketing and you shared it with somebody, they told you the same thing. I know I’ve heard it enough times.
So, what is a pyramid? Funny story. In my early-20’s, my mom and I got invited to this special meeting. The meeting was all about how you could get $16.000. They went on to say, that each person would put $500 into a spot on this triangle drawing, and when 32 people bought a spot you got the $16,000.
Well, that’s great if people continued to keep joining, and joining, and joining. But, that’s not what always happens. It gets started and then, for whatever reason, it stops and you are out of your money, which is what happened to my mom and I. Not only are you out of your money, but it’s illegal. It’s really a form of illegal gambling.
When I hear someone talk to me about network marketing and say it’s a scam or a pyramid, I have to laugh. Most of the time when I ask them, “what do you mean?” They have no idea or they say it’s one of those things where the person at the top makes all the money. And that’s just not the case with network marketing at all. Now, it is absolutely the case with a pyramid or a scheme, because that’s the whole idea of how it works.
Network marketing is not a pyramid. I’ve spent my entire career in marketing. Network marketing takes people, like me, out of the mix. So instead of spending your marketing dollars on advertising, media and having a team of people doing that, you have a team of salespeople who are out there, sharing your product. A lot of products do better when somebody can share and explain them. It’s hard to do a 30 second or minute commercial, a radio spot, an online ad, or whatever it might be. It’s sometimes better hearing it from somebody, sitting down with them, and letting them explain to you what the product or service is.
Also, people buy on relationships. Many purchases are based on what their friends have told them, so it’s all referral. I mean, let’s talk about Facebook. Somebody got very rich on Facebook, and I’m pretty sure none of us got a paycheck when we referred our friends to join Facebook. I’m sure when we tell someone to go to a restaurant, we’re not getting a kickback from the restaurant. So we do it all the time in our daily life. We just don’t get paid for it, so I’m never quite sure why, because we get paid to share our really cool product or service with somebody, that now suddenly, that’s a pyramid or a scheme.
The other thing I hear with the pyramid is, “The person at the top makes the most money.” That’s not true at all. That sounds more like the corporate structure. Corporate, you have a CEO at the top, and normally, that person is the one that’s making the most money. Then from there, you have your C levels, and your presidents, vice, whatever, and your employees down at the bottom. So it’s really not the people at the bottom that are making the most money. It is your CEO. In network marketing, everybody comes in with a fair chance. It is possible for anybody, and there’s plenty of room at the top, so it’s not like you can only have one person there.
The company I’m with right now, there are hundreds of people at the top, making a lot of money, but it’s all based on how hard you work and what you’re willing to do to get to the top. People think it’s a scam, because most people don’t make any money. The truth is people don’t make money because they don’t do any work. We’re a society that wants instant gratification. We think we’re entitled to that quick, get rich quick idea. It doesn’t work that way. You have to work for what you get, and with network marketing, it truly is as hard as you’re willing to work, is as much money as you can make. So if you’re willing to put the time, and the energy, and be consistent about it, and stick with it, and not quit, then you can make a lot of money.
I hope this was helpful to really clarify what a pyramid scheme or scam is, and what network marketing is. And you can see, that network marketing is not that. Now, I’m not going to say there aren’t some network marketing companies out there that don’t always operate the best, so use your judgment. Do your research when you’re looking at them. Some are a little more focused on just recruiting, recruiting, recruiting. They’re not even talking about product or service, and yeah, they kind of walk the borderline of being a bit of a pyramid or a scheme. But, network marketing is a phenomenal business structure.
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