As a Network Marketer it’s not a matter of if, but rather how many times you have been asked “Is this one of those Pyramid Schemes?”
It’s a fair question, they don’t know and want some clarification. If you can’t answer their concerns quickly and accurately they are gone and won’t be back.
Pyramid Schemes
It used to be fairly easy to spot a Pyramid Scheme. If they didn’t have an end user product it was a Pyramid. Modern day Pyramid Builders have gotten not necessarily smarter but sneakier.
Some Pyramids have a bogus product to fool the casual observer. It’s generally over priced, of poor quality, and not something you would use yourself if you weren’t getting paid to use it.
The products, if they exist, are not available for retail outside of the scheme. If you are not a member, you can’t buy any. And if you are a member you probably have way more than you want.
The main tell of a Pyramid Scheme is you are only paid to recruit, sponsor, or enroll new members, not sell the product.
Network Marketing
Network Marketing has a value based, stand alone product or products available to members and non-members alike. Sometimes at the same price or slightly higher for non-members, it varies by company.
Some of the confusion stems from the fact that the more people you sponsor, the more money you can make. Some Compensation Plans offer a one-time Fast Start Bonus on the first order of a new member.
But that is just a one time incentive, not the main or only way to earn a check.
A person in a legitimate Network Marketing Company can make money before he sponsors a single new member by retailing the products. In some of the Plans you can earn a living by just retailing the products and never sponsor anyone.
While it can be done it defeats the purpose of Network Marketing, the ability to leverage the efforts of many people to create a substantial income for all members, both brand new and well established alike.
What To Look For In Your Network Marketing Opportunity
Contrary to popular belief it is not your product or Compensation Plan that will make or break you in Network Marketing.
It’s Your Sponsor! Yes, it’s the one you asked “Is this a Pyramid Scheme?”
Is (s)he both willing and able to train you to work the business. Or are they content to let you try to figure it out on your own while they sponsor more people that they won’t bother to help?
How To Choose Your Sponsor
It’s fairly easy to tell if your prospective Sponsor can and will help you. Just go to Google and type in your sponsor’s name plus the name of the Network Marketing Company like this ” sponsor name + opportunity name”.
Click Here if you would like some help in getting started, whether you are looking for an opportunity to join or even if your present sponsor isn’t up to helping you to get things moving.








Hey Michael,
This article is dead-on accurate! The very first MLM “opportunity: I joined was nothing more than a glorified pyramid scheme.
You've definitely outlined what to look for here.
[Reply]
Michael Reply:
July 7th, 2010 at 3:49 pm
Hi Derek,
It’s too bad we have to be on our guard when looking at business opportunities. Luckily there are more legitimate opportunities than scams.
Mike
[Reply]
[...] Comme un agent de commercialisation de réseau, ce n'est pas une question de si, mais plutôt combien de fois on vous a demandé «Est-ce un de ces régimes Pyramid?" C'est une bonne question, ils ne savent pas et que vous souhaitez des précisions. Si vous ne pouvez pas répondre à leurs préoccupations rapidement et avec précision, ils sont partis et ne reviendront pas. Pyramides Il sert à [. . . ] URL article original: http://michael-c-cole.com/network-marketer-or-pyramid-builder/ [...]