Just Another Pyramid Scheme

Those of us in network marketing have heard this dozens, perhaps even hundreds of times!  In my opinion, it is a ridiculous statement!  

In Corporate America, companies have a CEO, Vice-Presidents, Supervisors & Managers and the General Workers.  Somehow THIS business model does look like a Pyramid!  The guy at the top makes far more than those below him.  In network marketing, those who join on the lower levels have as much opportunity as those “above” them to earn a large income.  They are not limited by “titles,” and if they work hard—patiently, consistently and persistently, they can earn as much or more than those who joined before them.

It can be annoying to hear prospects—or friends and family—refer to our businesses as a Pyramid Scheme.  We know we have a real, legitimate business, and that term automatically indicates that others believe it is a scam.

I can be difficult to respond to people who refer to our businesses in that way without sounding defensive or offending them.  We all know that there definitely are scams, Pyramid “Schemes,” but they are in the minority.  A very important part of being able to answer people is that WE must totally believe in our companies and KNOW that they are reputable. 

Another misconception many people have is that when they join a network marketing company, they are paying to get a job.  “Why should I have to pay for a job?”  It is our responsibility to educate them about the difference between a job and owning a business. 

I have found some people—even with an explanation—simply don’t “get it,” and obviously there is no sense in even trying to recruit them.  No matter what we say, some people will still believe that if they have to pay, it is illegal. 

On the other hand, if a prospect IS actually seeking a JOB, there is no reason to try to change their mind.

Some network marketers don’t understand that everyone is NOT qualified to work in the industry, nor will they ever want to do so.  For instance, if I refer someone to my website to learn more about the business and they do not go there, I do not want them on my team.  They cannot follow instructions.

Know when to move on to the next prospect.  No matter how hard we try, some people will never understand that network marketing is a perfectly legitimate industry.  Others will never understand why they have to pay to work with our companies.  Know that the prospect is not a good candidate.  Next!

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  • Julie, I couldn't agree more.  I enjoyed the read!

  • Thank you all for your nice comments. I appreciate it.

  • Exactly Julie, totally agree with you.  If you don't invest you won't get anywhere.  I had an experience about a year ago when talking to a prospect and he said if you pay for me I will join you.  Obviously didn't know how it worked (even though I explained all to him) or he just wasn't interested and just wanted someone to chat to !!  Have shared for you.

  • Great article Julie.  It's true, sometimes, it's just better to let go and say, "Next."  Thanks for sharing this great information.  Some will never understand.  Business, not Pyramid Scheme.  Liked and Shared.

  • Top Commentor

    Straightline companies are the hardest to create. As much as possible this is the method we use. One gains we all gain. It is the best model. 

  • Awesome blog Julie. I don't get that objection anymore and if I did I would not waste my time (unless they really wanted to know what a pyramid actually was). People that use that objection are in the stone age. Most people are trying something from home nowadays. So the ones that are still in that mental stage of thinking, they are usually just a waste of energy. Enjoy the journey and keep sharing your wisdom my friend 

  • Great thoughts on that occasional response we may here from time to time, Julie.

    It is particularly interesting to me that those that ask, "... why should I have to pay for a job?" are often doing exactly THAT when they have to purchase extra items for their work wardrobe (maybe even company logo shirts and jackets), pay for travel expenses, meals away from home on a daily basis, etc.

    A different mindset is required for those that become business builders.  

    After determining whether or not a person has an open mind and just needs more information versus those that will never understand, then we can more quickly identify those that are simply not good candidates.

    Thank you for a great article, Julie!

  • Top Member

    As network marketers we are looking for people that believe in network marketing already and they know that this is their business to build and earn residual income. This industry is the best to be in because you are building a business to earn residual income. I am sharing this post for more to see. I will be posting it on the Syndication Express blog too. I loved this post and well, I love all your post. Keep up the great writing.

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