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Is Network Marketing A Pyramid Scheme?

Many of us when we pitch someone else about network marketing, you might of gotten responses of “is it a pyramid scheme? Whats crazy to say is many people who are working in the job industry do not know they are part of a pyramid scheme as well. I can tell you this by you reading this post you are going to learn what is a real pyramid scheme. There are very good news network marketing companies who offer a product and service are not a pyramid scheme. The only way a company can be a pyramid scheme its only if there is no product involve and the only way for you to make money with them is by bring other people in without offering any product. Today if you visit mlmrankings.com and click on the tab where it says companies that dropped out it might of been because the FTC might of shut them down or maybe they were not making any money.

Are Pyramid Scheme scaring people away from network marketing?

When you ask someone about starting a business opportunity and they see the compensation plan, what might scare them is how levels are made and how the person on top is making more money than the person in the bottom. Lets start by saying this jobs today are worst because you can be in a job for 30 years and still make the same amount without any growth at all. Not only the growth sucks in a job but the person higher than you has leverage over you and you are never able to gain leverage. Check out the diagram below


The reality is if we shut down anything that relates to pyramid than the economy would not go anywhere. We need experts and teachers and CEO. The problem is we see network marketing as a easy money scheme. Network marketing is not an easy business to start first you have to train yourself to be motivated and learn about why residual income would be beneficial for you.

“A pyramid scheme can be defined as a fraudulent money-making scheme that is based on a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme without a legitimate product or service being delivered. Eventually the number of new recruits fails to sustain the payment structure and the scheme collapses with most people losing the money they paid in.”

Network Marketing Benefits

Becoming part of a network marketing business you are able to get paid like professions do. Not only that instead of going to college for years and not get paid for it you can make a fortune becoming part of a home based business. The distribution model that network marketing companies have are to help the economy grow. If a distributor takes a product and sells it to someone else he/she would receive a commission for their effort. Main benefits are leverage and residual income. If you are a person who works 70 hours a week and only gets paid for the hours you put into a job than you are losing out the opportunity of only working 20 hours a week to replace your current income.

I would rather earn 1% of 100 people’s efforts than 100% of my own efforts”
– John Paul Getty (American Billionaire)

Therefore network marketing is not a pyramid scheme. Whenever you go to your job look at your current situation and ask your boss how much money is he getting paid for his efforts and after you find out ask “how much is the owner making?” You are going to learn they are making more money than you are and they probably been working with you less years and they make more money of you. Make sure you look at the hours you work and the effort you are putting in your job. Think ten years ahead and think about how your current situation is going to be. Not only that but what would happen if your job lets you go and finds someone else that is willing to get paid less than you are? Think about the problems you might gain if you lose your job.

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Wish You Much Success!

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Email: WorkWithRaymond01@gmail.com

"I help network marketers how to find the missing link to success."

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