The Truth About MLM
So Your Prospect Thinks M.L.M Is A Pyramid?
You're not in the M.L.M industry very long before you hear the phrase, "That's one of those pyramids!" Or the question, "Is this one of those pyramids?"
The "pyramid" objection comes up because people have
no knowledge, incomplete knowledge or wrong knowledge about M.L.M and
pyramids. Please notice that I wrote "pyramid" there. In other words, a
person could think M.L.M is a pyramid because they DON'T KNOW WHAT A
PYRAMID IS.
Have you had prospects who have already determined that M.L.M is a pyramid?
YOU must be knowledgeable about what a pyramid is, so you can point out the differences between a pyramid and M.L.M (network marketing) for your prospect.
So this newsletter is going to explain the differences between pyramids and M.L.M
Pyramid
The word pyramid has simply come to mean a business that seems like a scam.
Scam
A
fraudulent business scheme. Fraudulent comes from the Latin word fraud,
which means deceit. Deceiving someone means to trick them.
FACT:
There is no activity (stock trading, charities, law firms, medical
doctors, religion, M.L.M, government, etc.) that does not have a
history of fraudulent activities.
In looking at scams, it is important to locate the actual source that is creating the scam; there is ALWAYS at least ONE person.
Source
One that causes, creates, or initiates; a maker.
If
a person kills someone with a rock - don't blame the rock! The rock
isn't the source and didn't kill the person. A person with bad
intentions is the source and USED a rock to do damage.
If a
scammer uses telemarketing to seduce its victims into a scam - don't
blame the telephone. The scammer [a person] is the source and USED a
telephone to deploy his scam.
If a scammer [a person] uses M.L.M to deploy his scam - don't blame M.L.M.
An industry can't be a scam as it's not capable of tricking people. People are the only ones capable of tricking someone.
M.L.M is not the culprit in pyramids, the culprit is the unethical activities of a person or group.
The reason scams sometimes use M.L.M is because it's a powerful way to distribute anything.
Illegal Pyramid Scheme...
An illegal business that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered.
Sometimes there may appear to be a product - but it's only there to "look" like a real business. Few people outside of the pyramid desire the product or they can get the same product elsewhere at a less expensive price.
If you enrolled me into your business and I paid $300 to join BUT THERE WAS NO VALUABLE PRODUCT THAT WAS EXCHANGED - that could be an illegal pyramid!
This does not mean that M.L.M is an illegal pyramid because people enroll others into a business. The fine line between legal M.L.M and illegal pyramid scheme (according to the Federal Trade Commission - FTC) is the exchange of a real product.
So the primary difference between an illegal pyramid and a legitimate M.L.M company is that a pyramid does not have a "real" product. A legitimate M.L.M company has a real product that people outside of the business desire.
Putting pyramids into perspective. Sometimes I like to point out that there is a lot of negative emphasis put on illegal pyramids, but if you put it into perspective with other industries it allows the prospect (or distributors) to also see the undue emphasis. How I put pyramids into perspective is by pointing out the losses caused by pyramids versus losses caused by other activities.
As you can tell, pyramids do not cause a lot of financial losses compared to other activities. Don't misunderstand my comment on pyramids - I dislike them a lot. I want them eliminated. But there's undue emphasis put on them compared to where people lose the most money. Now you know the differences between a pyramid and M.L.M.
[This article was provided by Tim Sales of Brilliant Compensation]
