Pyramid scam for people who know nothing about pyramid scam
Pyramid scam for people who know nothing about pyramid scam
This post will be a story about pyramid scam and what it really means they can understand what pyramid scam is.
After a chat about on my fan page today with someone I least expected to be using the words “pyramid scam“ and to be honest they didn’t really understand it as they haven’t even been in MLM or Network Marketing EVER. I wanted to create a post and give you a real version of what a pyramid scam is and why you should be careful when looking to get in to Network Marketing or MLM.
I do get sick and tired of people that are lacking the mentality to really understand a pyramid scam and that if you do this the right way and build a legal and trustworthy business online and offline with a real product that can be given to your children and be worth more money than when you buy it, how can it be a scam or a pyramid scam. I can’t tell you how many people try to look to this as a way out of living the life they really want and they let there small minded blocks to stop them getting the life they deserve.
I can’t tell you how many people try to look up ‘pyramid scam‘ up every single hour, day, or month through videos of people or through the search engines. I can’t tell you how many times people say this phrase in a conversation with their friends. Seriously though, it’s a lot and most of them don’t even know what it means! What people actually fail to realize is that a true pyramid scheme is a thing of the past. The governments have to pass checks on the business and the pay-plan and how the company is structured before they can even go ahead and open the company up to the public, these things that happened in the 1980′s and 90′s hardly even exist anymore. People tend to think that Network Marketing and Multilevel Marketing are scams. This couldn’t be further from the truth. Let me explain. more about a pyramid scam
A true Pyramid Scam, in a nutshell and simple terms, is where you give money to be part of a system that that will allow you to go out and collect money from someone else and they do the same and then they do the same this is real pyramid scam. You will take a piece of their enrollment fee and also a percentage of everybody that they go out and recruit as well. Why is this bad? Because there is no exchange of a product. That is what a pyramid scam is. People paying money to find other people who are willing to pay more money – the cycle continues. This is a bad pyramid scam. This is a pyramid scam scheme. In my company you go out to get people to buy “A PRODUCT” which is a sliver coin each month.
The government regulates this quit strictly which makes it difficult to create a pyramid scam business now. A company simply cannot go in to businesses unless the simple platform of ‘offering a product for a monetary value’ is met. No exception. So if one were to take place, it simply would not be a legal business. People would be running this illegally and not as a pyramid scam.
Legitimate Multilevel Marketing Not a Pyramid Scam
There are countless 100% legitimate companies out there who run based off the Multilevel Marketing platform and not a pyramid scam. This does not make them a scheme or a pyramid scam. Most of them have invested hundreds of thousands if not several million just in product development. Many of these companies offer products that are like no others on the face of this planet. They tend to be a bit more expensive, but anyone who has been on some of these products know the immense benefit from them, especially in regards to some of the health-related products.
The Multilevel Marketing Pay Plan Not a Pyramid Scam
This is what all of the hype is about! “MLM is a pyramid scam because the people at the top make all of the money”! And this, my friend, is why I laugh. No. This is not completely true. Each Multilevel Marketing company is different and each pay plan is slightly different. But all plans, in a nutshell, pay the same way. The people above you can actually make less than you. A lot less!
Just because you are high on the totem-pole, doesn’t mean you are rolling in the dough. Your pay scale depends on countless factors. But in general, you are paid percentages of people below you. You are paid more from those who you have directly sponsored, than those who you have indirectly sponsored. It is when you sponsor many reps and sell many products that you start to make a very healthy living. But remember, each person below you can make more than you! It all depends on their production level! Just because you are higher, doesn’t mean you will be making more. Not true at all. Again, each company is different.
So What Is A Legitimate Home Business and Not a Pyramid Scam?
Honestly, there are a ton of great companies. I don’t want to list them here because I don’t want to leave any out. The reality is that all Network Marketing companies are 100 legitimate and legal. But some have products that aren’t all that exciting. There are 3 things you want to look for in a pyramid scam when you consider joining one of them.
- Join a company that has been around for a while you then know its not a pyramid scam. I like the 3-5-year rule. Why? This is because many Multilevel Marketing companies have failed in the past – simply due to poor management. So what happens to your residual income for life? It’s gone forever. You must start over with a new company and start your business from scratch. Join a company that you are confident that they will be around for a very long time. Are there exceptions to the 3-5-year rule? Yes.
- Join a company with great products. If they have a real product or product it is not a pyramid scam. Who wants to join you if your company sells junk products? Nobody. The question I like to ask is “If you weren’t involved in this for businesses, would you still buy this product?” If your answer is yes, then you more than likely part of a good Multilevel Marketing company.
- Join a leader! This is the most important of the 3. Why? Because if they are a leader – they know what they are doing. If they know what they are doing, they will show you how you can succeed as well! Most people join their mother or their brother. This is why most people fail. They join, but have no clue what they are doing – and they fail. They then tell everybody that MLM is bad and it is a pyramid scheme. That’s why the industry acquired a bad name. It isn’t the company that is bad, it was the individual.
MLM And Network Marketing Is Not a Pyramid Scam
The truth is that each company that you have come upon online – is actually 100% legitimate and legal. People fail with this industry because they are attempting to start a marketing business without knowing how to market. That is the reality. The business opportunity is still huge – especially when you take it online.
There are tens of millions of people involved in this industry. Most are failing. Imagine if you ever joined someone who knows what they do and they taught you how to succeed. Then people would want to join you simply because you know how to make it work. There have been countless rags-to-riches stories. For example; individuals with no money and living in a car become involved in this industry, take their business online, and make $40K/month residual income for life. That’s the power of this industry and the ability of the Internet. Pyramid Scam? I think not. If they could take action, you are able to too and show it is not a pyramid scam!
To Your Abundance!
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