So.. This is a pyramid scheme?

Discussion in 'Network/Multi-level Marketing' started by kailo, Apr 19, 2011.

  1. kailo

    kailo New Member

    I'm not really good at answering that question when I bring up the MLM business opportunity to people in person. Usually, the people who join me are already familiar with MLM businesses.

    How do you guys combat this?

    I hate to use the "This is just like corporations.. you have CEO at the top, senior management, etc..." explanation.

    Help me out!!
  2. Just2EZ

    Just2EZ Moderator

    kailo: How do you guys combat this?
    Very good question, my answer is "Next".
    Anyone who thinks all MLMs are pyramid schemes will continue to think so.
    The chances of you changing their mind are slim and it is wasted energy.
    To combat that RTPR allows signing retail accounts not in the "business opportunity".
    Lead with the product not the opportunity, otherwise it is probably is a pyramid scheme.
    MLM is perceived as a pyramid scheme by about 87% of the population.
    99% of the time they are right, very few products produce more profit than upline commissions.
    Most "MLMs" are more concerned with recruiting than selling their product.
    The FTC guides are pretty clear that the focus should be on retail products sales.
    If your upline makes more in commission than you make in profit, beware.
    If the seller makes more than all the upline combined then it's a real business.

    I don't know any magic words to change the perception of MLM.
  3. abdncwithlj

    abdncwithlj New Member

    I think "Next" is a very good answer to that.

    Try marketing to people who are looking for what you're selling instead of trying to convince people that the opportunity you have is good.
    There are people looking for an opportunity online every single day.

    They will just end up sapping your energy.

    Good luck!

  4. ThinkBig

    ThinkBig New Member

    I like to inform and educate people. I drop big names like Donald Trump, Warren Buffet, and Robert Kiyosaki and explain how network marketing is a legitimate business model.

    It also helps to have great products that people have heard of and are in demand.

    Some people still won't get it or just don't want to hear it, it's better just to move on.

    The great part is, once you become successful, you can say, "I told you so". [​IMG]
  5. talfighel

    talfighel Silver Member

    Find out what your mentor has to say about this.

    If you are talking to people who show you and tell you that they are not interested, then just move on. Your persistence and positive attitude will get your some great future leaders.

    Some will, some won't, so what, so who's NEXT.....
  6. weebitty

    weebitty Member

    [​IMG]Yes you have to move on because the ones that won't make the decision either won't join at all or will join just to get you to shut up and won't do anything after they join.

    You can lead a horse to water as the saying goes.

    It maybe that they are waiting to see how sucessful you do and then they will consider it. People also wait to see if it fails as a company so they don't loose money.

    I wouldn't spend time with them trying to persuade them but you can send them e-mails once a week or so just to keep them in the loop. I have done that and people have come in months later. [​IMG]

    RICH4NURICHE New Member

    kailo, to be blunt, i just make sure they understand that it is a Independent Contracting business. My "job" is to move product and/or set up service accounts and get rewarded for my efforts. I show that i am a product of the product. Your upline should provide you with training to address this. If not, then look up other contractors and network with them, since that's what this industry is about-networking.
  8. FreeCashMan

    FreeCashMan Well-Known Member

    Ask them do you mean legal pyramid or illegal pyramid? Watch the reaction on their face, or response.

    Of course no one in their right mind, participates in a known illegal pyramid. However, legal pyramids, we do that all day every day, and encourage our children to do the same.[​IMG]
  9. kailo

    kailo New Member

    I found that moving on is the best solution. The skeptics will always be skeptical.

    No matter how legal this is, the phrase "pyramid scheme" will be stuck in their head.

    RICH4NURICHE New Member

    Moving on is the best thing to do if you simply don't want to "deal" with their skepticism. Simply by asking them questions to get a detailed answer as to why they are skeptical can be useful. What you want is information about how they see it. They are simply not educated enough to fully grasp how it works or a negative seed was planted by someone into their mind from a negative experience that person may have had.
  11. troymcoughlin

    troymcoughlin New Member

    In my primary business, we use this great youtube video that was found just a couple of months ago (completely generic, no particular business mentioned here) that I use to send to prospects who have any doubts as to whether it is a "pyramid scheme" or not, and it does a great job of explaining what a pyramid scheme actually is, versus a legitimate mlm company. Feel free to check it out and use it for your own prospects who have questions like this.
  12. mbasa

    mbasa Member

    I would not waste my time on those ones either. If one does not grasp the concept of MLM the first time, there's a chance that they will never understand it. Your best people are those who are already looking for such opportunities.
  13. EnergyPro

    EnergyPro New Member


    Loved the You Tube video. I will be using this one.
  14. westfam11

    westfam11 Member

    "Next" was going to my answer too. If you haven't connected with a person or developed a relationship with them and this is what they have to say I would definitively say they are not ready for MLM or any home business for that matter.

    I am in a "customer" focused business right now and so I don't run into this very often any more.
  15. Interesting,

    When I was confronted with the old, is this a pyramid deal, I would simply ask them, what is a pyramid deal? 99% could not explain it, so I rest my case, so many simply hear the term and since it is so often attached to MLM industry, they just turn off their brain, if they had one to start, and like others say, next. You should not have to waste your time or knowledge trying to change a persons mind, it is near impossible in my experience. People are saying no thanks when they throw that old pyramid line at you, so again, next.

    Success to all,
  16. evetend

    evetend New Member

    I have so much about mlm and read something about it but a lot of people are looking for quick cash and they believe they can get it through network marketing but i see it as an avenue to help the company to grow thereby developing my marketing skill, so am looking for a company that is not in Nigeria but wants to make an in road into Nigeria.
  17. ThePhoenix

    ThePhoenix New Member

    I'm disappointed with the number of "Next"s I read here. You shouldn't give up that easily! A lot of people just need to be educated about what network marketing is, and some of them will come around. There are certainly those who will never change their mind, but just because someone is ignorant now doesn't mean they will be later.
  18. Just2EZ

    Just2EZ Moderator

    ThePhoenix: later
    The whole point of "Next" is not to waste time trying to convince anybody.
    There are those who see the vision and will act, those are worth your time.
    The person you are trying to convince will only be convinced when they are ready.
    You can plant seeds to help them catch the vision but don't waste time trying to change them.
    That's a good way to lose friends and future prospects.
    Let them be the one to decide when they are ready.
  19. ScottCofer

    ScottCofer Member


    That's perfect ... I like the way you've phrased that response, and it's a great lead-in to the typical corporate structure - thanks.
  20. needs2stop

    needs2stop New Member

    I used to say, "Why, are you looking to join one?"

    They'll obviously say no. Then you say, "Good, because this isn't one."

    If for some reason they say yes. Then you can say, "Good, because this IS very similar to how pyramids work, but even better...THIS is legal!"
    Go Green and Karina Rosas like this.

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