Excuse Me But, Is This A Pyramid?
by Leon Brickey
One of the most ignorant things a person can do is to reject something they know NOTHING about.
I've been involved in Network Marketing/MLM for over 5 years with varying degrees of success. One of the most common concerns I hear from people is, "Leon, how do I know this is not a pyramid?"
When people ask me this my favorite response is, "Exactly what do you mean by pyramid?"
Usually the response is something vague like, "I don't know, I just heard these things were illegal pyramid schemes."
Did you ever notice that most of the time these well meaning people who question these business opportunities have no idea what they're asking? This blows me away!
What I'd like to do with this article is answer this question so YOU will know how to respond in the future when you are asked this tough question.
First, just what is a pyramid? A pyramid is a solid triangular figure which, when formed is one of the strongest structures known to man!
Next, what is a scheme? A scheme is quite simply a design, plan, or a system.
So is network marketing a "pyramid?" NO!
Is network marketing a plan or system, that when built correctly and successfully, takes the SHAPE of a pyramid or triangle? YES!
Now let me "blow your mind."
EVERY large business is set-up like a pyramid! In fact, I don't know of ANY large business, organization, religion, or government that IS NOT set-up or shaped like a pyramid.
Let's look at almost ANY large, well established company you want...Sony, Microsoft, Wal-Mart, etc. Does anybody doubt these companies are legal, ethical companies? Probably not. Who is at the top of these companies? The president of course. Then he or she appoints a few key people as vice president. They in turn appoint people to manage or oversee various regions of the county or world. This delegation of responsibilities continues down for several more levels. At the bottom of this organization is where
the LARGEST number of people are by far! This is where the regular employees or laborers are.
If you diagramed this organization out on paper would it not take the form of a pyramid? Of course it would! Doesn't matter if you are talking about Sony, CNN, IBM, the Catholic church, US government, or WHATEVER! You must realize that pyramid shaped businesses, organizations, governments, etc. are everywhere.
Going back to businesses, there are two types of businesses shaped like pyramids:
a) legal
b) illegal
When we look at any pyramid shaped business where does the power come from? The majority of the power comes from the bottom, not the top. The bottom is where the majority of the work force is.
This is where the question of legal or illegal comes into play.
For any pyramid to be legal it MUST have value flowing "up" and "down" it's structure. By this I mean it must have money, products, services, votes, etc. flowing up and down it's structure.
For example, when you work a job, you are usually required to put in a set number of hours per week. Your efforts while at work are the value that flows up the pyramid. When you get paid for your efforts that is the value that flows down the pyramid. This is an example of a LEGAL pyramid.
An illegal pyramid has no value flowing down the pyramid. So if the company hired you and worked you, but didn't pay you, that would be an illegal pyramid.
This greatly simplified example applies to chuches, governments, and many other organizations.
So is network marketing legal?...
For Network Marketing to be legal it too MUST have value flowing up and down the pyramid structure. Does it? Of course it does!
Money flows up the pyramid structure and product, services, training, and support flow down. Therefore network marketing is as legal as IBM, Sony, your local church, or the US government.
When you put money into a Network Marketing company/pyramid, you're purchasing product. Right? Even before you purchase the product you know EXACTLY what you are getting in return for your money.
How can that be illegal? It's not!
Network Marketing has been around for over 50 years.
Network Marketing does billions of dollars in gross revenue sales EVERY year and is growing at 20-30% annually. If Network Marketing was an illegal pyramid, and growing at this rate, it would have been outlawed years ago. There is no way the US government would ALLOW any industry to do billions of dollars a year in business if it was illegal!
So are ALL Network Marketing companies legitimate? No! Absolutely not. Neither are ALL traditional type businesses. There is good and bad in EVERYTHING. There are good and bad people in every industry and organization.
In closing...
Network Marketing is a legal business which, when built successfully, is shaped like a pyramid, just like Sony, CNN, US Army, Coke, Catholic Church, etc.
Because of Network Marketings explosive growth and popularity it is now and always will be regulated.
In the US, Network Marketing is regulated by the Federal Trade Commission (FTC) among other agencies
If Network Marketing was illegal would it be recognized and regulated by these government agencies? NO! It would have been shut down years ago.
Conclusion...
Network Marketing is legal as long as there is value flowing up and down the pyramid structure.
****************
Leon Brickey is webmaster/owner of Appalachian Online Marketing at
http://www.appalachianmarketing.com. Find everything you need to turn your struggling business into an explosive moneymaker! Subscribe to Absolute Internet Marketing Resources Ezine containing the most current, up to date online marketing resources on the planet. One of the top ezines on the net. FREE!
mailto:ezine-subscribe@appalachianmarketing.com?subject=art| DISCLAIMER: The content provided in this article is not warranted or guaranteed by Developer Shed, Inc. The content provided is intended for entertainment and/or educational purposes in order to introduce to the reader key ideas, concepts, and/or product reviews. As such it is incumbent upon the reader to employ real-world tactics for security and implementation of best practices. We are not liable for any negative consequences that may result from implementing any information covered in our articles or tutorials. If this is a hardware review, it is not recommended to open and/or modify your hardware. |
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