“Excuse me but Is This a Pyramid?”
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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 respose 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 labourers are.
If you diagrammed 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 churches, 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.
Thank you,
Leon Brickey
mailto:webmaster@...
****************
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!
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