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Why is that everyone calls the mlm industry one big pyramid scheme the truth is not all mlm companies can be classified as pyramid schemes. Let me elaborate a pyramid scheme is when one guy at top of the company makes ALL the money. This means that no matter how much marketing expertise you have you will never make any money within the company. So let me ask you a question how can certain compensation plans be considered a pyramid scheme? How about a 3 x 9 forced matrix this system structure is mathematically impossible to be labeled a pyramid scheme. Why? let me explain how it works in a 3 x 9 matrix you can only have 3 people on your first line. What this means is that any one else that you personally sponsor has to go under someone that is in your organization. That right there eliminates the talk of a pyramid scheme so a 3 x 9 matrix is a great way to start in the mlm world because of spillover. So choosing the right team can create a fast start Atmosphere simply by benefiting from spillover. So any compensation plan that presents spillover can not be called a pyramid scheme.
Another compensation plan that can not be labeled a pyramid scheme is called a binary. How this one works is that you can only have 2 people on your first line then each new member you enroll you will have to place them below the person on your left leg or right leg. So Again how can this BINARY system be considered a pyramid scheme. A good example is lets say your sponsor goes out and brings in 100 people he would then have to put those 100 people under you and the other guy. A plus for a binary is that if you have a active upline they usually build one of your legs for you while you work on the other leg created from ‘SPILLOVER” but it only works if you have a good upline. Anyway Upline support creates additional organization volume which proves that this comp structure kills the notion of being a pyramid scheme.
People need to realize that there are so many different mlm companies that thrive because of pay plans that benefit all. The Binary pay plan or A forced matrix are the ones you need to stick with. I personally love forced matrix’s because it motivates me to to help my downline which in return helps me get to my financial goal. Look Pyramid schemes are starting to be a thing of the past and it will be pretty hard to get caught in one if you take my advice.
The days of the pyramid scheme & the fat cat at the top are over anyone can make incredible money if they just get involved with like minded people. Also joining a already thought out marketing system can only better your chances of having success in your first 30 days. When looking for a MLM company look for the team environment first, then gage whether or not there is a plan of action you can plug into otherwise you will fail. If all the hype about pyramid Scheme’s is preventing you from joining a MLM company then think again use the the techniques to investigate the situation and you will not be caught in a PYRAMID SCHEME POINT BLANK. One last note on pyramid schemes don’t sell lotion and potion’s because it is too hard trying to keep people inside of your organization when they are obligated to circulate or take a certain amount of product to qualify for commissions.
Those are the MLM pyramid scheme facts Best of luck….
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Source by Jai Mainer