As far back as I can remember when I first started doing Network Marketing and talking to some friends about a business MLM opportunity. I could almost feel them rolling their eyes and sighing and it wasn’t long before one of them used the term that people in my industry hate the most “pyramid scheme.”
This term has been used to describe MLM network marketing and I could tell that my friends were already tainted with misinformation about what this opportunity really is. I started to wonder why so many people associated MLM network marketing with a pyramid and Ponzi schemes. It led to a few conclusions and here is why many people associated MLM network marketing with these schemes.
Why people think network marketing is a pyramid scheme
Here are some of the biggest reasons why people see this business model as a scheme:
-They are misinformed: If you go on Google to look up MLM network marketing you will likely see dozens of articles that claim it is a scam. If you only read a few of these articles then it is easy to see why you might be suspicious of the validity of multi-level marketing. This is because most of these articles only focus on the scams that exist and say nothing about the many MLM network marketing opportunities that are legit. The fact is that there are many MLM opportunities that are absolutely legitimate and offer great financial opportunities. However, if you are writing an article you will probably get more traffic if it is negative, which is why so many people choose to write negatively about the MLM network marketing profession.
-There are a lot of scams: Let’s face it, the reason there are so many negative articles is that there are a lot of scams out there. The problem is trying to separate the real opportunities from the pyramid schemes. Here are some ways to avoid the schemes:
- Do the research and make sure the company has a good reputation
- Learn everything about the product and make sure it is a good one
- Ask a lot of questions
- Make sure you understand the commission structure and how it works
- Make sure you are selling an actual product, and not just recruiting people into a “plan”
- Talk to other people are in the company that you’re researching
- Be patient and find a company that is actually a good opportunity that resonates with you
Avoid the scams
As long as you find a good company then there is no doubt that you can make a lot of money with MLM network marketing. By doing research you will quickly and easily be able to root out the businesses that are actually schemes. Just keep in mind that not all MLM network marketing opportunities are pyramid schemes, but you will need to do some work to find the good ones.
After I explained all of this to my friends they were much more open to the opportunity I presented them. The next time someone asks you and if you were selling a “pyramid scheme” you will know just what to say.
Have you ever come across someone who said that your deal was a pyramid scheme? How did you handle it? What did you say? Would love to hear your thoughts!