What if Your Prospect Asks You if Your Opportunity is a Pyramid Scheme?

Let's face it, this question is just going to happen. But for a good number of people, this is probably where they might get stuck and not have the best answer to give.

Now I know a lot of people are going to say that "pyramids no longer exist" since most of them have been exposed and shut down.

However, people who aren't familiar with the networking space very likely don't know that. But they are aware that pyramid schemes have existed and still might believe they're super common today.

So here's what to know when that question inevitably comes up in your business the difference between a legitimate MLM and an actual Pyramid scheme:

1) Pyramid schemes typically don't have actual products. 

Most of them tend to involve you investing some amount of money but without getting any sort of physical or even digital product.

Instead, there tends to be "promises" of higher returns on your investments or something of the sort. These promises are rarely met though.

2) If the opportunity DOES have products but you don't make commissions off of simply selling those products, this is likely a pyramid scheme.

Instead, people participating in a pyramid scheme will ONLY make money from recruiting other people into their downline and that's it.

This is not the case for MLM's because you'll earn commissions both ways. However, recruiting is highly recommended if you're looking to make a significant more amount of money in your opportunity.

3) Pyramids tend to guarantee returns and/or are incredibly vague with their income disclosures.

Where there is investment there is risk. If any person or company literally guarantees you any sort of specific returns, run the other way immediately.

There is no such thing as "guaranteed returns" on anything or from anyone. Period.

MLM's will typically give you a chart with rough estimates of what people generally make according to their rank.

These estimates aren't 100% accurate but it at least gives you the idea of what type of earning potential you can get by hitting a certain rank.

Also, MLM's don't promise any sort of returns or gains as they disclose to you that your earnings and advancement are based off of personal effort and commitment to your business.

4) The only people to really benefit from a pyramid scheme are the ones who got in first or early.

Anytime anyone gets in on the ground floor of a pyramid scheme will usually be the ones who have the best shot at making the most money.

Because in order for a pyramid scheme to work, there's that old saying of "Robbing Peter to pay Paul". 

Which when it comes to new recruits, just means that their investment is literally being taken to pay the last person that joined the scheme. 

This gives those people false incentive to keep the scheme going because they just made money.

The problem is that when the recruiting stops, so do the earnings.

When it comes to MLM's, anybody regardless of when they joined or if they've recruited anyone or not, can still make income off of simply selling products.

Everyone that joins the company regardless if it's on the ground floor or years later all have an equal opportunity to make a life-changing income.

Anybody joining late in a pyramid however, are usually the ones that don't get any return unless they keep the operation going through recruiting more people. Which again is the ONLY way to make money in a pyramid scheme.

Hopefully now that you have this knowledge, you'll be able to tell your prospects with confidence that your MLM is not a pyramid scheme.

You also know the important things that separate your opportunity from the ones that are simply just there to take your money.

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