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Busting the myth multi level networking is a scam!

October 3, 2018 Published by admin

I recently got into conversation with an old school friend who asked me what I’m currently doing.

To give you a bit of background I currently run 3 businesses and have recently just sold one. So, being a little modest, I like to think I know a bit about business and what it takes to succeed. I also know a lot of the pitfalls that come with running your own business and being your own boss, having to make most of the big decisions. I also know how lonely it can be at the top, with no one to talk to or help you make those decisions.

My latest business venture is fitness coaching online. I sort of fell into it by accident, I wasn’t looking to start a new business at all, 3 is more than enough! I actually got involved because I was using the products myself. I had been focusing on business so much that I had neglected my own health and started to put on weight.

I started doing the home workouts (the product) and got myself back in shape and really enjoyed the process. A big part of me getting back in shape was being part of an online community that supports each other towards achieving their health and fitness goals, to have people encouraging you and holding you accountable.

Through being involved in these communities I noticed the transformations people were having both physically and mentally and it was a really good feeling to see people making positive life changes on a daily basis.

I’ve always been into personal development attending Tony Robbins seminars and the like, I’ve also always been into sport and coaching sport, one of my other businesses is a sports school coaching children to swim and play football. So when the opportunity came up to be more involved through business it made sense for me to do it. It seemed like a really good fit to merge both coaching, personal development and helping others to achieve their personal goals. So whilst this business was a network marketing business for me it was more about the fitness and community side of it than the actual business itself. (Until I got a taste of the earning potential that is)

After explaining to my friend about what I was up to and what I was doing he said “that smells of a pyramid scheme”

I had a little chuckle to myself as I come across this objection all the time. I have been approached numerous times in my life about joining a “pyramid scheme” business and probably had the same objections as my friend.

“Pyramid schemes don’t work, they are a con”

“Only the people at the top and get in early make money”

“it takes too much time and effort to be successful at it”

I levelled with my friend and agreed with him that it was indeed a multi-level marketing business but thought I’d have some fun with it so asked him the question – “aren’t all businesses Multi Level and the person at the top makes all the money? After all the CEO sits at the top and earns the most money, his managers underneath him earn less and the staff underneath the managers earn less again”

He shot back “but the CEO of Tesco’s doesn’t ask its employee’s to buy in with any capital to work for them”

  1. Only the people at the top make money

    Well this argument is partly true. The people at the top do make the money, but isn’t that the same in any business structure? The higher you go up the corporate ladder the higher the salary. The CEO of a company makes more than the managers, the managers make more than the staff and so on and so on. So why would it be any different in network marketing?

    The difference in network marketing is you get to move up the ladder quicker, you are in control of your earning potential. In a corporate job your promotion is dependant on other people above you making decisions and whether or not there is even a position available. You could work extremely hard in a corporate job and not see any salary increase or promotion for years. You could put the same effort into network marketing and see your efforts rewarded financially very quickly. Therefore getting to the “top” and making more money.

  2. Only the people who get in early make money

    I do not believe this objection to be true. I believe, like anything in life you get rewarded for the effort you put in and the action you take. Those who are successful at anything make a commitment to being successful, they put in a lot of sweat equity, they work when others are watching Netflix, they rise earlier and do whatever it takes to succeed. In network marketing you get rewarded on the effort you put in not because you “got in early”. The same is for the CEO of a company the reason they earn the big bucks are because they have put in the time and effort and learnt the necessary skills to be there and earn the kind of money they do.

    It’s easy for people to say it’s easy for them, they earn so much money, or everyone else does the work for them. That’s just an excuse for the lazy! Anyone who has achieved anything of note in life has put the effort in, they’ve kept going when things got tough, they learnt the skill necessary to get to the next level.

    If you go to the gym and actually take the time to look around you’ll see that only a few people actually have “gym bodies” They are the people who show up everyday and work at it, they turn up when its snowing outside and are there first thing in the morning and last thing at night. They turned up when they didn’t feel like it or when people told them to stay at home that day.

    You then have a few people who go to the gym who are in good shape, they turn up most days and put a bit of effort in, then you have a few more people who are average shape who turn up once or maybe twice a week depending on what’s going on elsewhere and then you have the January Gym’ers who join a gym in January, realise it’s hard work and quit!

    I used this analogy to say that. Most Business Do Not Make Money, not just network marketers. 90% of ALL business fail. Why? I nearly always boils down to the same thing Most people just want to get rich quick, they won’t do what it takes to be successful, they don’t work late at night, they don’t educate themselves with new skills. Most people don’t realise that it takes years of work to reach the top. People think when they see a top athlete emerge they are an overnight sensation, they don’t see the years of effort they put in beforehand to reach the top. The sacrifices made behind closed doors.

    Most people don’t have a big enough reason why they are doing it. Most people have bad habits. Most people like watching TV instead of doing what it takes. Most people let other people talk them out of it.

    Bottom Line: Yes 90% of people don’t make money in network marketing, but this is everywhere and in everything we do!

  3. Pyramid Structures are Bad.

    There is a big misconception due to negative press. However, when you break it down and look at any type of organisation they are usually in the shape of a pyramid.

    A traditional business for example has a MD/CEO – the tip of a pyramid, the next level down you have the heads of department, then you have the upper management, followed by middle management, followed by supervisors, followed by staff, followed by customers. A pyramid!

    Whilst we may all have differentiating views on politics, the structure of government is a pyramid. You have the Prime Minister or President at the top, you then have his closest advisors, you then have the chiefs of staff and heads of department, followed by the Ministers, followed by your local MPs. Guess what its another Pyramid!

    The same goes for most religions at the top you have the Pope, followed by the cardinals, followed by the priests, followed by the ministers and so on and so on. It’s a pyramid structure.

    So, to quickly sum up I would say so what if it is pyramid shaped, so are all traditional business, government, religion and every other big institution.

    Yes only the people at the top make the big money, so work hard and get in to the top 10% of people. If you don’t someone else will.