It is Just a Pyramid Scheme!

Although network marketing and MLM’s have been around a very long time, those of us in the industry still find we have to defend it at times.  If you are already in the field, how do you respond to those who believe that all MLM’s are all scams?  I’d like to share a few basic responses to all the misconceptions.

Some people insist that we have to join the company early – on “the ground floor.”  This simply is not true.  So many new companies fail in their first two years (or sooner), I would never consider one. I believe it is safer to join an established company with a good reputation.

Have you heard this one?  “My best friend’s brother tried that once and failed miserably.”  Or, “I tried it 10 years ago, and I never earned a dime.”  Of course I don’t know their best friend and certainly not his brother, but it is very likely he never worked his business or put any effort into it, but he expected to be paid anyway.  Or, they didn’t research the company prior to joining, they sold lousy products or had poor management. 

We have all heard this one more times than we count.  “It’s a pyramid scheme.”  Virtually every corporation IS a pyramid.  The CEO is at the top; next is the executive team; then there is a management group; and finally, the bottom of the pyramid is created the majority of its employees.  Those on the bottom work to make money for those at the top.  On the other hand, an MLM is not a pyramid.  Every representative has the same opportunity as anyone else in his/her company.  How much they earn is up to each individual.  


Some companies sell over-priced products, or they are not what was advertised.  Unfortunately, this is true with some companies, but certainly not all.  Many store-front businesses do the same.  There are companies out there with great products whose benefits outweigh the high price.  However, not everyone will agree. 

To be prepared, it is up to each individual to research a product and price and the company prior to joining.   Research is also required to be sure the company sells a real product.  If a company stresses recruiting before  their product, they may actually be scams.   

Many companies train new recruits to approach their “warm market” first.  I have never done this.  Just like I know what my siblings do for a living, they know what I do.  If they want information, they’ll ask for it.  They have referred prospects to me, but I never “bugged” them to do it.

I have also heard, “I can’t sell anything.”  Neither can I!  If you have a quality product with a good company, you will not have to “sell” anyone!  My websites provide the information that most prospects need.  I certainly answer their questions, but I simply provide information.  I refer people to a website and respond to their questions.  That is all it takes. 

More really good network marketing companies are available to those seeking a business opportunity than in the past.  The industry’s reputation is improving.  Sure, we still hear the “silly” arguments, but they have become easier to explain in recent years.

If anyone reading this post has other misconceptions they hear repeatedly, please leave your comment below.  Or, if you have a better response than mine, I would love to hear it!

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  • I appreciate you reading and commenting on this post.  

  • Sorry meant Julie !!
  • Thanks for being honest with your views Judy.
  • Telling it like it is Julie!

  • Thanks so much Terri.  I appreciate your support.

  • Top Member

    Bravo Julie on telling the truth in this post. I am happy to announce that your post has been shared via Syndication Automation plus I am posting it on the Syndication Express blog for even more exposure for people to read.

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