MLM Directory

Do people in MLM (Network Marketing) honestly think all business is a pyramid like MLM?

You always hear them give the line that all business is set up like a pyramid to justify that MLM is built on recruiting people. While real business has fewer people in high earning roles, it seems MLMers miss the very obvious point that even a lowly janitor at McDonald's doesn't have to recruit 5 other janitors to make a living wage. Do people in MLM really think its the same? Do they really miss the point that real business doesn't have to keep hiring people for infinity to keep making money for its employees? It just seems such an obvious difference, yet it makes no sense that people in MLM are convinced it is the same. Andre - while you are correct about the legality, let's not let the absurdidty of the whole thing get lost on us. The fact that MLM gets around being illegal and not a straight pyramid scheme is ONLY becuase there are products and services available to be sold by the reps; however, the fact is nealry all MLMers focus their attention on recruiting others instead of sales - meaning although it is legal for all intents and purposes it is virtually the same. If MLM companies wanted to put the focus on personal sales instead of recruiting then how can you expalin that ALL MLM compensation plans allow you to move up the ranks ONLY by recruiting others. You can be the worlds best salesperson but unless you recruit other people you can't obtain the top rank in any MLM compensation plan. Let's get serious, they are the same, depsite anyone considering it "legal" or not. L.F.Heap - you spent spent your entire answer describing any sales company. Evidently the point of this question was lost on you because if MLM was focused on sales and not recruiting then there would be no issue. The question was in reference to the fact that MLM push recruiting, and weigh it as FAR more important than personal sales, and the evidence is in the MLM compensation plans.

Public Comments

1. I think they've convinced themselves, or allowed themselves to be convinced, that there is no difference. What it comes down to is, they want to get rich as fast as possible with as little work as possible. They want to sign you up and have you succeed so they can ride on your coattails. There seems to be a certain kind of person that gets sucked up into these schemes... they were just wandering aimlessly, and the first cult or mlm that came along was bound to find themselves another follower.
2. Yes, people who do not objectively look at MLM have a warped view of reality. In this model, the bottom feeders must recruit to stay alive or else they don't earn anything. Be careful to differentiate pyramid schemes from MLM. Although used interchangeably, all pyramid schemes are illegal whereas all MLM are not. A pyramid scheme is when someone makes money simply by recruiting someone else. In MLM, the person makes money by recruiting someone who gets a sale. It's a fine distinction but an important one that separates legitimacy from jail time.
3. that is the problem of MLM or anything similar such as paid survey, paid to read email and etc. those kind of programs only benefit the top level people and its creator. their products are very low quality. the reason the products exist is to legalize the scheme. most of us want to generate money from the products not to recruit people. now MLM type program are introducing new term to attract people who already don't believe with MLM. and this kind program or systems will never work because system can be copied and improved so over time it will die down when new better payment plan come in to compete and take over their popularity. so it is just a waste of time. we are giving them free advertising and real estate value to their website. and what we get? lost precious time and money. but unfortunately it will always exist because there are to many people want quick and easy way to get rich. and these people are the targeted traffic for MLM.
4. Hi, I can understand everything you have said. I do however, disagree on the answers given. Using your example of the janitor, no he doesn't have to recruit to get paid. Neither do people engaged in mlm. They can get paid and get paid well just for sales. You don't have to move up the ladder either to make money. The explanations given are because the janitor, no matter how hard he works, will EVER be able to earn what the CEO does. In mlm, the janitor could make more than the CEO! That's the big difference.. Everyone who works in a supermarket earns money from what we the purchaser buy, right. That's where the company gets their money. The cashier's friends might decide to go to that store because he works there but does the cashier get credit for bringing more customers to the store? NO! In mlm they do. Rewards go to those that work the hardest. Mlm or network marketing is a very respectable business. Unknown to most of the public, many Fortune 500 companies have an arm of their business in the mlm industry. Ordinary people can become very wealthy in this business but as in every business, most do not. The difference is that you CAN where in mainstream businesses you can't. Having said that, so what if you don't get rich? How good would a couple extra hundred dollars a month be to your budget? Would it be worth the extra time you have to put in? Now the reality is that to be successful in any business takes effort and time. There are no Get Rich Quick businesses that aren't scams, so if it sounds too good to be true, it most likely is. Don't be turned off by people who think they know mlm and have never worked within it or learned about it. If you're afraid of hard work, can't handle rejection, or don't want to put the time in to learn the business and ways to build it without having to sign up your friends and family, then I'd suggest you don't get involved. This isn't for you. But, if you're a go-getter, want more than you can get in the traditional business and you like the idea of residual income, then I suggest you learn all you can and how to market effectively, again, without your friends and family. Learn how to have people come to you. The future can be whatever you want it to be if you work for it. If you want to know how to have people come to you, check this out www.deborahmarsden.com.