Why Network Marketing isn’t a Pyramid Scheme

I have been involved in network marketing on and off for over 35 years. I have built traditional companies, I have been an employee and I have built a couple of network marketing businesses.

I promise you; all kind of businesses are pyramid shaped! Network marketing is the ONLY ONE where EVERYBODY has the opportunity to reach the TOP.

Over my years in this industry people have given me different reasons for not being interested in building a network marketing business. Some people think it is too good to be true and don’t even want to look into it or try. Others want to build a “real” business where they have to get a business loan, mortgage their house, borrow money from friends, work 12-16 hours a day, have no time for friends and family for several years (I know, I’ve been there as well!)

Another common response (or should I call it a misconception?) from prospects, friends and even family is that they do not want to be part of a “pyramid” or a “pyramid scheme”.  Let me explain to you why network marketing is NOT a pyramid scheme.

According to Websters Dictionary the definition of pyramid scheme is: “usually an illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants”. Pyramid schemes are illegal! Governments all over the world have legislated on these kind of “businesses” and stop this kind of activity.

Look at any business in the world, even Governments. There is always someone at the top and someone at the bottom. The President or CEO is at the top, then comes the executive management team, next level managers then the workers below them. Are you starting to see the picture? Looks a lot like a pyramid in shape, doesn’t it?

Who makes more in this kind of organisation? The people at the top or you at the bottom? Can you make more than the manager or supervisor above you in the organisation, and can you have the same position? Probably not unless the person above you quits or dies. If that happens, you probably first have to go up against other applicants for the position, and chances are high that you work harder than your boss, yet they make more money than you do. Does that sound fair?

In network marketing everyone starts at their own top, and you will always be the top in your organisation. You are the CEO of your business. Then you help other people get started and they are at their top, being the CEO of their business.

A person you help get started can achieve a better position and make more money than you who introduced them to the business, but they will always be a part of your business. You can decide to take this business very seriously and earn more money and get a better position than anyone who was in the network before you, included the very first person who joined. All this without anyone else having to quit or die. All you need is to work harder and build a bigger team.

The best part is that the people who introduced you to the business and who are already in the business are your mentors. They love to help you and stop you having to make all the mistakes they have done – you learn all the right things and work as a team from day one. It is this simple and this fair!

Network marketing is in many ways comparable with a commission process. If you were in real-estate and sold a house, you would make commission when you sell the house. This is similar to what we do in network marketing. We educate people about a unique product/technology and/or opportunity. If people like what we offer, we connect them directly to the company and they purchase at the exact same price as us.

Whenever this happens the company send us a “thank you for the help” commission. In our modern world most of these interactions happen online, on different digital platforms. When the products you educate people about are consumables this sets you up for exponential and residual income for the future, as people usually “subscribe” to their favourite products.

When people see great results from using the products, they “pay it forward” by sharing their knowledge and experience with others and help them do the same. You are the initial start of this chain of users, all buying direct from the company and therefore you will get a “thank you for the help” commission for all the sales these users are accumulating.

Network marketing is actually WORK, and for those who are willing to do the job, it is extremely rewarding. You can and will make money with network marketing if you work the business properly. Do not trust all the “fake news” out there, posted by people who have never been educated on the business model. Invest in quality information from educated sources and get your questions answered. You will see that it is a true business to be a part of.


 If you have any questions about how I can help you get started, please get in touch!

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