Thursday, October 30, 2014

Is MLM a Pyramid Scheme?



Posted by GetYour90.com

You have probably heard of Network Marketing or MLM also know as Multi-level marketing.  Maybe you are even a marketer yourself.  Perhaps like many, you have heard horror stories related to MLM or the term within a context of something negative.  Worst yet, maybe in your mind,  MLM is synonymous and nothing more than a cleverly contrived term for Pyramid Scheme.

But is this true about MLM?  Is MLM a Pyramid Scheme?

First, I will come right out and say I have a bias toward MLM.  Because I work in a great MLM company, I love the multi-level principle and what Network Marketing is in its purest sense.   I believe we have a great industry and great people working in it.  Behind the scenes and at the forefront are people like you and me who truly do have integrity and a deep desire to help see others succeed.  Having said that, this is how good companies must continue to operate if we DON'T want to be labeled a pyramid or get-rich quick scheme or something worst!

Dr. K. Dean Black Ph.D writes in his pamphlet "The MLM Simple Success Guide" some excellent points about MLM.

"Some people don't like Multi-level Marketing, but there's nothing wrong with the principle, just with the way some people work with it."

Likewise when people abuse a system it's not the system that is necessarily at fault but the people who are the abusers.  We have a liberties in America because of Freedom but abusers of Freedom attempt to ruin it for the rest of us.

Similarly in MLM or Network Marketing, perhaps you have come across that marketer who has made claims about a business or product that simply isn't true.  And their claim isn't true,  not because you didn't work the business correctly, but because it was a SCAM from the get-go.   Perhaps you have even experienced or inadvertently gotten involved in such a scam or rip-off scheme which even claimed to be a legitimate "business".  We know about these so-called "businesses"--ones that claim to make you rich over-night or have the product that cures all problems.  Many of these ideas are also actual pyramid schemes and legitimate scams (and illegal) many of which don't offer you anything of value at all.

Dr. Black explains what Multi-level marketing is and isn't by first making the important point that nearly all business, government, churches, schools and organizations above a certain size have a pyramid structure.   But this doesn't mean they are a scam.  In fact, the multi-level pyramid structure isn't something to fear.

"Any organization that distributes products or services ends up shaped like a pyramid, with multiple levels that get bigger as you go down."  Dr. Black states.  "Delegation creates a multi-level pyramid.  Our government is also a multi-level pyramid.  So are our schools and churches.  All successful businesses, because they distribute products and services, end up shaped like a multi-level pyramid."

He goes on to explain that when we vote, we are giving the government the power they possess. This power comes from the bottom creating a pyramid like structure.  Likewise, we the people give a marketing company their power when we buy their product or services.   So the break-down really comes when people begin to feel slighted or are actually being taken advantage of or ripped off.   Distributors within a company have the power and control over how they manage their business within the company they represent.  As a rep for Youngevity and Dr. Wallach's 90 for Life message I believe a company such as Youngevity must have good products.  There must not be false claims about a product in order to keep the integrity of the company.  And finally, any such company is only as good as the distributors and reps who represent it.   We have the power to make it great or something else.   And because we are the face of the company, we are the ones who future customers, business owners and reps will see and make first contact with!  By being a positive example we can keep the integrity of a great marketing system that is MLM.

No comments:

Post a Comment