Is This a Pyramid?
Isn't this a pyramid is the age old question. I would like to take just a few minutes of your time and describe what a real pyramid is and is not.
If you are new to Network Marketing and haven't been ask this question yet, or told “Oh it's one of those Pyramid things” you will believe me.
So the first thing I want to do is give you some of the legal points to what an illegal pyramid really is. I'm doing this in hopes of you using this to be able to intelligently assess whether or not the opportunity you are looking at is really legit.
Pyramid Scam Things to Look For.
- Heavy reliance on recruitment and no real exchanging hands between the participants in the company.
- Emphasis on recruitment over product.
- Motivation to buy is not based on the value of the product not to guarantee qualification.
These are some of the things that you need to look for. In a nutshell it goes like this, a Pyramid is anything where there isn't a real product changing hands and all the emphasis is on recruiting not the product.
You will notice that no one has mentioned the age old complaint of the person at the top makes all the money. If you stand on that complaint then as you can see the graphic at the top shows that Corporate America is a prime example of that.
So here's what I can tell, if you are being presented with an opportunity that is primarily based on recruiting I would seriously consider running the other way, especially if the product seems to have NO value.
Below is a cute video cartoon talking about what a pyramid scam is.
So the next time someone ask you “Is This a Pyramid” you should be able to enlighten them. I certainly wouldn't spend much time doing that and ask questions to find out what their real objection is.
Knowing what an illegal pyramid is though will be one extra arrow in your quiver of knowledge that may help at some point.
If you have got value from this please share with your team and comment below.
P.S. If you are a struggling Network Marketing and would like some effective questions to ask your prospects, get my 30 Questions to ask a prospect for absolutely FREE at the right.