Is it a pyramid scheme?
Now that I’m working with Rolution to I received the same question/response. I’ve looked into this and I found the following explanation. Network marketing is NOT a pyramid scheme because it has a product. GDI has the .ws domain name and the website builder and Rolution has the Vault and also the possibility to build a website. A pyramid scheme doesn’t have anything, you’re just asked to put in money and together you’ll find more people who are willing to do that. The problem is that when people decide to step out and take their share the pyramid collapses and a lot of people lose their money.
A pyramid scheme is illegal in a lot of countries. There’s no legit company behind it. With network marketing there is a legitimate company behind the product. You can contact the company by email and by phone and they are registered as a real, legitimate business. So before joining a network marketing company check if they are registered and check the company’s history.
I get this response a lot when I tell people about network marketing. For some reason one of the negative things about MLM is that people think it’s a pyramid scheme. Why? I don’t know but I hear it very often. Now that you know the difference you can explain to people right away that your Rolution or GDI business opportunity is not a pyramid scheme. Believe me, if you can’t tell them this right away, your story isn’t interesting anymore.
The last thing I want to share about the way people think about network marketing is that for some reason it seems that there are more negative thoughts about it than positive. Of course this worries me. I’m thinking should I continue? It’s costing me a lot more to build my company now that I’m creating a professional website. On the other hand I only signed four people until now and those people aren’t really signing new members themselves. I often read that with network marketing the people on top earn a lot of money but people like you and me will have to work hard for almost nothing. I have to reasonable, will I be successful with MLM? I doubt it sometimes but on the other hand I really believe in the solution of combining MLM with internet marketing. My new website is on the way so let’s focus on SEO for now and not give up. I’m not going to lie about this, I have my doubts and this blog is for everyone who’s starting a network marketing business themselves so I want you to see this to. Your probably having the same thoughts so let’s be open about it.