IS
MLM A
PYRAMID SCHEME?

Also there are some real strange websites on the Internet that claim all MLM companies are pyramid schemes. Eventually you will run into someone that says, oh yeah one of those pyramid schemes. I am here to armor plate you and how to handle the question!

WHY PYRAMID SCHEMES ARE SHAPED LIKE A PYRAMID!

A Pyramid Scheme is shaped like a pyramid because they run out of suckers and the deal collapses. About any multi level compensation plan can be used for a pyramid. A pyramid scheme sells products of no or little value at inflated prices so that a lot of money flows through the pyramid scheme. The last people in make very little or no money because there aren’t a spare 100,000 or million people dumb enough to feed the bottom of the pyramid scheme. Get Rich Quick is the battle cry of pyramid schemes! We could say Darwin’s Theory holds true and the smart survivors stay out! The pyramid scheme starts collapsing and the participants complain to the law (usually too late).

The answer is no real MLM company is a pyramid. The definition of a “real company is one that customers (who don’t belong to the pay plan) buys goods or services from. I have seen the downline reports of over 100 reputable companies selling valued products and services. Looking at the levels of distributors in a print out shows that the company’s downlines look like a diamond! In fact some look like a skinny turnip! No pyramid scheme shapes here!

WHY A LEGITIMATE MLM COMPANY IS A DIAMOND

We also hear the charge from critics saying, “only the people at the top make any money.” As soon as they say that I know they are displaying they know nothing about MLM. They probably haven’t done any more than buy a distributor kit and sat and watched TV. There are plenty of companies where people that were not in the company from the first made big money! In fact one company I was the top earner in I was at the bottom of the heap. If you were look at the diamond above I would have put a big bulge in the right hand side of the bottom! I was 300 levels down in the company and only 6 generations made any money off of me. The original distributors that had started with the company had all left. I know of lots of similar cases where the top earners were not at the top of the diamond.