As an online entrepreneur, it is not uncommon to be asked if I am involved in a pyramid scheme.

I get asked this at least once a week.

“Is this a pyramid?”

This question is so strange in my opinion.

Look at planet earth.

Is it not one big giant pyramid?

Look at every single company. There is a CEO at the top of that pyramid.

Is every company illegal?

Is every company a bad thing?

If you are going to be employed in a company, are you at the bottom of a pyramid?

Is so, is that a bad thing? Should you never get a job so you are not part of a pyramid?

In Network Marketing, people probably run into this concern much more then I do.

I do Affiliate Marketing, which is selling other people’s products and get a commission when a sale is made. It can be perceived as a “pyramid” when there is an aspect of some Affiliate Marketing programs where you get incentivized to recruit top Affiliates to come under you, as you get 5% residual on their production. This is a 2-tier business model, which is very common in the Affiliate Marketing industry. ClickFunnels, as an example, has this business model in place.

Does this make that ClickFunnels a pyramid?

Of course not – ClickFunnels is a legitimate product that helps entrepreneurs design sales funnels with ease.

So what is this pyramid question all about?

It boils down to people being ignorant and unaware of the various business models in the world. There are all sorts of business models.

Affiliate Business Model, Membership Business Model, and more.

It also goes down to fear.

It is very simple to evaluate a pyramid. Is there a product that is actually being sold?

Asking the question “are the people at the top make all the money?” is a ridiculous question – of course, they are!

If a CEO in a company does not make all the money, there would be something wrong!

The funny thing is that with Network Marketing (Multi-Level Marketing), it is not uncommon for the CEO to NOT be the highest paid member of the organization. Some Network Marketers have such a huge team under them that they have created their own “pyramid”.

People in the world make money. It is keeping money that is a difficulty for a lot of people. Making money and keeping money are two different things entirely.

There are a lot of tax benefits to being involved in a Network Marketing.

If you are living paycheck to paycheck, or you are an employee, when someone asks you if you are part of a “pyramid thing”, realize that is your answer is no, it might be why you aren’t where you want to be financially.

Don’t prejudge it, have a fixed idea about it, or be scared of it. Do your due diligence, educate yourself, and make an informed decision. Your financial future depends on it.

Eran Bucai

 

ps – note: I am not personally involved in Network Marketing, but I have spoken to enough people that only have a job, and in today’s day and age, it is inadequate in the long run.

pps – Credit to Steven Carrillo for letting me use the awesome picture of himself with an awesome T-shirt with the Luxor hotel in Las Vegas in the background, you can follow him on Instagram: @tropicalmissourians

ppps – if you want to purchase your own T-Shirts with a message, go to Entrepreneur T-shirt shop.

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