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Why Network Marketing is not a Pyramid

I have been involved in network marketing for over 20 years. Over the years I have had people give me many different reasons why they are not interested in building a network marketing business. Some think its too good to be true. Others want a “real business”. You know the kind where you get a business loan, mortgage the house or borrow money from friends kind if “real business”.  Along the way you may also hear a common response from prospective business associates. It’s actually more of a common misconception; that some people think multi level marketing or network marketing is a “pyramid” or a “pyramid scheme”. This appears to be based their observation of the basic network marketing team structure. This being someone at the top of a tree and people below that person who; in their minds will get shafted later when the money runs out. They assume everyone who got enrolled before them will make all of the money off of the last person who joined.

I have always found this to be an odd perspective. Maybe it just comes from people who are just not really interested in building a business of their own and need a guilt free way to say “not interested”. Lets look at what a pyramid is and isn’t.

First off Pyramid schemes are illegal and generally don’t exist. One of the few things the government does well is place restrictions on businesses and prevents this type of activity pretty quickly. Most people that have this preconceived notion assume network marketing is a pyramid as soon as you draw out the network team structure. It always shows them at the top and other people under them. The also understand they are at the bottom of  someone else’s team/tree. Presumably yours.

Evidently this bothers some people who think you somehow are going to make money off of them and that this is NOT OK. After all you have to get them started and train them and provide support of all kinds for free. When you can help them become successful and build a good size income; then and ONLY then will you make a small percentage from the business volume generated. Keep in mind this is not money that will come out of their pocket either.  I really don’t see the issue. Get FREE help building your business and when you become successful the person who started and helped you gets paid something.

job pyramid

I don’t really think they understand that the only legal pyramid scheme is working a job. Look at any organization chart for any business in the world. There is always someone at the top and someone at the bottom. The President or CEO is above you right? Then the executive management team, next level managers then the workers below them. Right? Draw it out some time or look at your employers org chart. What do you see? Looks a lot like a pyramid in shape doesn’t it?

Who makes more? The people at the top or you? Can you make more than the manager or supervisor above you in the org chart? Probably not, unless you are in sales and earn commission. Frankly you probably work harder than your boss yet they make more money than you do. Does that sound about right?

mlm pyramid

In Network Marketing you are the CEO of your business and therefore, can make more money that the person who introduced you to the business and even more than anyone who is in the network before you; including the first person who joined. You just need to work harder and build a bigger team. It’s that simple really. That’s what we consider fair. Those that work harder and have a bigger business should always make more money than someone who doesn’t, right?

Think about it and really look into network marketing. It is still the best way to start your own business and have the lowest startup cost. The lowest risk and the training system to help you learn what to do and usually several people to help you personally when you need it.

Sounds like a pretty good deal to me. Check it out for yourself. What have you got to lose?

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Thanks for reading!

Mark Balderrama

Twister sitting happy!