This illustration from the 1900’s went “viral” on my facebook, so I wanted to break down my thoughts on this whole pyramid thing.
It’s crazy when people ask me what I do and I tell them I help people become entrepreneurs and work from home then I hear: “Is that one of those pyramid things??”
It makes you think though… What is a pyramid scheme (really)?
Before I go any further, there is a quick “what to say” training at the end of this post for those of you that may or may not be on my team but are in the network marketing arena.
Pyramid schemes are unsustainable and often illegal
According to Wikipedia, a pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme. As recruiting multiplies, the money owed becomes impossible to pay and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
If I stopped there, it sounds like every network marketing company is a pyramid scheme, right? Sadly, that’s the same place most people stop as well… until they keep reading…
So to break that down, pyramid schemes are really investment opportunities that do not involve a product or service and rely solely on recruiting other “investors” to grow a fund that will allegedly pay everyone a return on their investment. Think in terms of looms, cyclers and those fat cats on that show American Greed.
The true test is to ask yourself if would you buy the product or become a member if you couldn’t get paid as well? If you would buy it regardless then it’s a legitimate and sustainable business model… if not… pyramid scheme stay away!
You don’t want to get involved with a company that is just churning agents for profit with no long-term success strategy.
Central banking scheme
Now that we have that understanding, this will blow your mind. Banks borrow YOUR money that you give them for safe keeping and pay you a 1% return. They go and loan it to others for things like vehicle loans and mortgages and make a 3 to 14% return.
Now, the only way to keep this scheme going is to bring in more money from us (or borrow from the Fed)….sound familiar? Sounds pretty unsustainable to me. Don’t believe me? Remember the big bank bailout of 2008?? The mortgage crisis left banks with more foreclosed homes than they could sell fast enough to keep the scheme going.
My point? The same people that holler “Ahhh pyramid scheme!!” also pay a mortgage, car note and deposit money in their bank account every payday contributing to the biggest pyramid scheme going… central banking.
This is only the tip of the iceberg! We haven’t even discussed the Federal Reserve yet or globalized central banking.
The real problems with Network Marketing
Ok back to the whole pyramid thing… The issue isn’t the concept that network marketing and MLM (multi-level marketing) represent. Most of these companies actually have sustainable business models.
The issue is that with some of the older network marketing companies they pay poorly compared to the value of the product/service. This leads to a feeling of buyers remorse and a feeling of being tricked into a scheme where other people have benefited from your innocence.
To prevent this always ask yourself, is this something I would keep even if I never make a dime from referring others? This will keep you from feeling like you threw money away because you actually bought something that had value.
Another issue is that the compensation plans aren’t explained very well to new reps or you gotta be a scientist to understand them. This leads to poor execution of business strategy where people don’t treat the opportunity as a business. They don’t understand what it takes to reach their desired income goal and they quit because they get burned out trying to just recruit everyone in sight while getting paid pennies.
You should never go into business with someone who is not a great leader or doesn’t have a vision to personally help people understand what they are getting into.
If you ever find yourself in a situation where the person that brought you into a company doesn’t explain anything to you, go one person above until you find someone that does! A report should be available in your back office that tells you who is the next person in line, or you can just ask your sponsor for their sponsor’s contact info. They should be happy to give it to you.
The last concern is that most of the older companies and even some of the new ones have a compensation plan that only benefits the people that have been building for a long time or are “at the top”. This angers people because they feel like they work the hardest yet get paid the least.
While Johnny Superstar is out traveling to a new country every month you are over here rubbing two pennies together to buy a new suit jacket to present to a living room full of 3 people that you had to beg to come over and watch a presentation… it just leaves a negative taste in people’s mouths.
Then again, people have no problem with going in to work the next day to work for a CEO that they may never even meet but that does travels twice as much and on the company’s dime.
At least in this arena you get to be your own CEO! It just takes time to fill out the ranks below you but never give up and you will. Trust me, it’s a lot easier than trying to work your way up the ladder to be the CEO of a corporation.
MLM Vs Corporate America
Speaking of corporations, network marketing is really the opposite of the corporate world. I think this is why the media helps push the anti-network marketing theme in movies and tv etc.
Think about the point I just made about working your way up vs filling out your organization top to bottom. Think about how your boss has to either get fired, promoted, move away or die for you to get a chance to get their spot.
In MLM, the computer gives you a promotion based on your performance. No glass ceilings, no brown-nosing, no feeling undervalued.
Another comparison, think about how you are trained on the job. Your boss typically only tells you enough to get your job done but not enough to ever take their place… this leads to a multitude of inefficiencies and slows down the learning curve which slows down the overall advancement of the company.
In network marketing, your sponsor will most of the time tell you everything they know so you can be as successful or greater than they are. They know that if you succeed, they succeed.
Corporations cannot compete with a people business structured like this so it has been embedded in us by the corporate-controlled media that pyramid schemes and network marketing are one in the same evil thing, but they are not the same.
A last comparison is having a schedule and a set place to work on a job vs planning your own hours, spending more time with family and working from anywhere there is internet or phone service. This is the most important comparison because success will mean something different for everyone, but everyone can agree that family and having time freedom are at the top of their list.
The Fear of the Pyramid
While we are on the topic of family, typically people’s fear of pyramid schemes come from their parents or grandparents that would warn against it or even disown family in network marketing! “Stay away from them pyramid themes and get a job”, as Mr. Reco McCambry’s grandma would say.
Mr. McCambry told our group this story about how his grandma was so against him joining a MLM company when he was younger that she thought he would go to jail! But he stuck with it anyway and hasn’t worked a job since later became a millionaire in his mid 20’s and started several successful companies after that including Novae Life. He took his grandmother on vacation and her first time on a plane. She thanked him for not listening to her.
She only meant what was best for him and she didn’t know how effective network marketing could be as a wealth generation tool. She only knew what was told to her… that you could get locked up messing around with those things and you’d do nothing but lose your money.
So don’t be bothered if your family doesn’t support you or they go running every time you come around. I really wouldn’t even tell family about your business unless they ask you why you always traveling and spending money yet don’t have a job lol. 
To close this thing out, I know I’ve kept you long but I thank you for reading, remember a pyramid is just a shape… a representation of a structure and hierarchy.
It is also the strongest of all shapes in God’s green earth… hence why the triangle is used for geometric progression and sacred geometry… I’ll do another post on that later (subscribe already!). The government, military, church, and our societal structure are all pyramids… let’s not chase boogey men and seriously analyze any opportunities that come your way.
Being able to leverage the time, effort, resources and capital of others is what this country is built on… isn’t it time you had your own pyramid?
Thanks for reading,
Jerry
PS. You know I’m going to throw in an opportunity for you to join our team, right?
Click here to see if you qualify!
PPS. What to say to: Is this one of those pyramid schemes??
When someone says this, first of all, don’t take it personal. Yes, in a way, it is an insult to have someone basically call you a scammer. But, what they are really doing is protecting the little money they have so don’t feel offended, try to understand them. FFF. Feel. Felt. Found. This is the best way to overcome any objection an especially one where the other person is uneducated about what they are talking about. Example response:
A pyramid scheme?? I feel where you are coming from with that question, you want to make sure this isn’t one of those illegal scams where you lose all your money making some else rich. I felt the same way at first until I found a few things that actually made this one of the smartest business moves you can make this year. I tell you what, I have a quick meeting I have to head to now but Ill be free tomorrow around 4 and I will have more time to discuss your options with you… sound fair?
That’s one way to overcome that. Another way that works is to say every successful business and organization in the world is a pyramid, isn’t it time you had your own?? I tell you what, I have a quick meeting I have to head to now but Ill be free tomorrow around 4 and I will have more time to discuss your options with you… sound fair?
Notice I don’t leave it open for them to think about it, I go to the next step which is setting up a meeting or sending them to a video.
What would you say? Comment your thoughts.