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The Multi Level Marketing Pyramid - Just Like Every Other Business

By Edited Dec 7, 2013 1 2

Pyramid Isn't A Negative Word When It Comes To Business

network marketing pyramid
Often when I tell people that I'm involved in multi-level (network) marketing, they respond by telling me that it's a pyramid scam and that I'm being duped. Now, aside from the fact that our network marketing business is cash flow positive (I'm being scammed by making money?), I'm noticing that few people actually understand how a network marketing business works.

People who think that network marketing is a "pyramid scam" just don't understand business. Every business is a pyramid. Look at the company you work for. The CEO earns the most money right? Followed by upper level, mid level and low level management, and then of course the workers on the bottom typically earn the least. I doubt that anybody on the bottom of that pyramid feels that they're being scammed.

A network marketing business works the same way. You start on the bottom earning very little compared to those on top. You work your way up based only on your effort and drive and not on years of service. You have complete power and control over how much you do or don't earn in your network marketing business. How can that be a scam? It is nothing more than a different type of distribution network for a product.

People confuse network marketing as a whole industry with ponzi schemes. In a ponzi scheme, there's no real product to sell. Investors are promised massive returns on their capital  and profits are paid to the higher level people from the investments of those below them. There is no product to sell and the "business" is not sustainable. Eventually you can no longer bring in enough new people to service the payments to those at the top and the whole thing falls apart. It always does. Ponzi schemes are illegal and are not a real form of business.

A multi-level marketing business is shaped like a pyramid, as is any other for-profit business. The difference is that those who work hard can get to the top and realize massive profits from their efforts. Work hard and be rewarded, no scam there.



Sep 24, 2012 10:13am
I love this article. For awhile I was involved in Quixtar which turned back in Amway. People would always claim that it was a pyramid sceme but the funny thing is that all business works like a pyramid. Most people are just not educated enough to understand. Thanks for the write up. I like it.
Jan 15, 2013 7:18am
Thanks for reading!
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