Latest posts by Merry Conner
Sharing the Facts on MLM PYRAMID SCHEMES
MLM pyramid or scheme? Tricky question. I see a lot of posts on Multi Level Marketing and Pyramids. It is frustrating that so many people are misunderstanding this. Makes it much harder on those that are reps of MLM companies. Facts are facts, and the law is pretty clear on what is a scheme or a scam. Before you go making statements about either of these it is important to know the truth first.
The first thing I want to discuss is the PYRAMID. Did you know the pyramid is the strongest and longest standing structure in the world? It is, and it makes sense as to why it is that way. Look at the structure and the foundation. The base is wide, the top is narrow. YUP! And yes multi-level marketing looks like an MLM pyramid.
Now think about where you work in the corporate world, or if you are in the govt. system or even a teacher or you work in retail for one of the big box types. Now, let’s put you into the equation. We will say you are the janitor at a school. Do you make the same amount of money as the principal or the vice? Have you ever seen or heard of a janitor being promoted to the position of principal?
You can put yourself into any equation in the working world other than your own small business where you do not have employees. The secretary of the firm does not make as much as the lawyer and the lawyer does not make as much as the corporate owners. Do you see how much sense this actually makes?
Multi-Level-Marketing (MLM Pyramid)
MLM pyramid or multi-level marketing pyramid has a structure that is built very similar to the pyramid because of the growth potential. If you work hard, learn more, sell more, you move up the steps of the pyramid. It would be the same in the real working world. You do not get promoted if you do not work hard, learn more or complete certain training courses. Does this sound like an MLM pyramid scheme?
There are no brick and mortar business models that I am aware of at the time of writing this post that allows you to grow and build a team and make as much money as you want in any given time frame. Not having to produce your own products, or have a store front, or employees.
Affiliate Marketing is the only other way that can produce results so quickly. This is a business model that is one of the fastest ways to make an income from home. Is it for everyone? Heck no. Is it a scheme, scam, or MLM pyramid scheme? NO. Is it a pyramid? YES.
Shall we clarify that again? MLM pyramid? Sure if you want to call it that. Remember the word pyramid is used rather loosely by many and it is NOT ALWAYS A BAD THING!
The Real Scheme or Scam?
A business which is running under a legal pyramid model functions by giving both its clients and its customers value. This value usually comes in the form of a service or product that is being offered at a fair price.There are a lot of schemes or scams to be aware of for sure but MLM, Direct Sales, and Affiliate Marketing are not normally a party to any of it.
When it comes to a pyramid scheme vs multi-level marketing, or MLM, there is a lot of truth and just as much misconception out there. The truth is, there are many ways to tell, but first you must understand that every business is based on a pyramid model. With that in mind, there are some major differences between a pyramid SCHEME and a pyramid MODEL.
Ok, so what is a pyramid scheme?
A pyramid scheme is nothing but smoke and mirrors, an illusion, or sometimes even a Ponzi scheme.
A few Additional ways to tell if an MLM is actually a pyramid scheme:
- The company you are checking out pays you ONLY to get other people to join, then it’s a pyramid scheme.
- If this company puts more emphasis on you making money rather than trying to explain what exactly it is providing you and your potential customers, then it’s a pyramid scheme.
- There isn’t an actual product or service provided. While training could be considered as a product, the MLM’s that are pyramid schemes will offer this training at an extremely overpriced cost.
- Upgrading to a higher tiered membership at an insane price all just so you can promote that tier of the business, it’s a pyramid scheme.
So how do you know?
Oh, You will know!! Yes, You will know! Once bitten, twice shy, third time…someone didn’t pay close attention! When you have no product but you are asked to recruit others into the program so you can get paid on them joining……………HOLD UP NELLIE!!
If you are being told you can make $10,000 or $20,000 a week within weeks because of ‘their secret system’ get the heck out of that page asap. If you get a phone call with a recorded message promising you the same, click 9 and hang up.
When you get an email telling you that you can make $25.00 an hour for processing emails, put it in the scam pile and trash it. Anything that is too sparkly, too in your face and the money you can make is ridiculous you can bet your last dollar it is a scam. Hopefully, it will come back to bite them in the butt but in the meantime, YOU stay clear. Do Not Chase the Glitter and Sparkle! It doesn’t happen like that.
IT HAPPENS TO THE BEST OF US
If anyone has had dealings with any sites like those mentioned above you know you are not alone. Some of the smartest people get caught up in the lies. We learn from our mistakes, and some are harder than others. If you are one of those that think MLM is a Pyramid scheme I hope I was able to clear that up a bit. Personally, I am not a fan of MLM for a couple of reasons.
1/. Having to purchase products, a kit or both on sign-up.
2/. I do not like the pressure of building a team. I love helping others and guiding them to ‘better’ but not because I feel like I have too or it is the only way I can make any money.
3/. NO’S, are great! No’s are awesome so be happy when you get one or 100. The more No’s means a yes is coming soon. No thanks. I do not need 100 ‘no’s’ to feel ‘good’ about my what I do.
Click on the Above link for a better understanding of Affiliate Marketing and click below to be taken directly to Wealthy Affiliate and your Free offer.
Super impressed with how passive it is and no outlay of money for products or kits UNLESS I am choosing to test an item to share on my blog. You should never have to put money upfront if the company is offering an affiliate program. If it is a little confusing think of Amazon. Do you know how many people are affiliates of Amazon? Huge!!
The platform I share is where I got all of my knowledge about building and starting a website/blog. It is the best place you could go for straight up honest knowledge. Yes, I am an affiliate and yes, I can offer you FREE for some awesome pricing if you do not want FREE.
Always ask questions when thinking about joining a program. If the person sharing information with you cannot or does not get back to you in a timely period you do not want to learn anything from that person.
Over To You
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