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The pyramid scheme

Pyramid Scheme vs Network Marketing | Overcoming the Stereotype

By Madra

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The buzz word “pyramid scheme” will make any network marketer cringe. It’s because the two are so often thought to be the same that when you tell someone about a network marketing opportunity people immediately think pyramid scheme. In this blog I want to get rid of the stereotype and differentiate pyramid schemes from network marketing. Enough is enough! I am not a scam artist, I’m a hardworking entrepreneur!

Pyramid Schemes

A pyramid scheme is set up by taking advantage of people. It is a money game that is sometimes hidden behind products. The only way anyone can actually make money in a pyramid scheme is if someone else is losing money. As new recruits come in (bottom of the pyramid) they have to make an investment, and to make the investment back they have to recruit new people and so on. It is all just money changing hand. The scheme will eventually die if new recruits don’t keep coming in.

In pyramid schemes that do have products (disguising the exchange of money) people are forced to buy the product in excess and when they can’t sell them? Too bad too sad, you’re stuck with them!

pyramid scheme

Network Marketing

Network marketing also known as multi level marketing (MLM) is a legitimate business. This business model is based on providing value to people with products and services that they want or need. You get what you put in, and how much you make in MLM is directly related to how much effort you put into selling the product and signing up distributors. Not everyone is successful but the same could be said for EVERY business!

In network marketing there are no investment requirements, and if you decide that this isn’t the business for you? No problem, you won’t ever be left with a garage full of product you can’t sell! There are no quotas to reach, education needed, and there is little overhead.

How to Overcome the Stereotype

Just for some perspective, think about how a traditional business is set up. The President and CEO are at the top, then managers and supervisors, and employees at the bottom. Guess who makes the most money? that’s right the people at the “top”. The same concept as a pyramid wouldn’t you say? Yet no accusations fly about the similarities.

Likewise, there is often talk about how many network marketers end up failing, but consider this:

“80% of traditional businesses fail in the first 5 years and 80% of the survivors will fail in the next 5 years. That means 96% of traditional businesses fail in 10 years.”

Wow that is a large amount of failed traditional businesses wouldn’t you say? Still they aren’t seen as scams.

pyramid scheme

Armed with this knowledge, I want you to be confident the next time someone asks you “Is this a pyramid scheme”? Assure them that in no way is this a pyramid scheme, get rich quick scheme, or any type of scam. What you are doing is all to benefit your customers. Network marketing is just like any other business! It takes hard work, but if you put your time and effort into growing this business you can be just as successful as me!

Love, Madra


P.S. If you are just getting started, or want to grow your network marketing business, listen to my success cast for FREE, Download Here!


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About Madra

Mom and entrepreneur who has failed a hundred times without even really realizing it, yet kept true to myself and kept taking leaps of faith. I believe that we can ...

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