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[Donnie Norton Contribution Level: 3]

While watching the news this morning there was a story about a minister who was signing up his congregation. The news channel automatically classified this as a Pyramid scheme. What they saw was John who signed up Mary and Jim who subsequently signed up 3 people each. What they saw was a diagram that had the shape of a Pyramid. What they failed to report on was the fact that anybody underneath of John could financially surpass John. The top income earner in my company actually makes more money than the person that enrolled him. Because the news is public record I can name the company which is Usana. I have never been in Usana but I know that it is not a Pyramid scheme. In my eyes the news channel needs to be slapped with a lawsuit for slander. Any thoughts from you guys?

[Warren Veach Company: State Continuing Education Contribution Level: 4]

Unfortunately, Pyramid/Ponzi/MLM are all synonymous to many people that are outside the direct selling arena.

One way to avoid this mis-perception is when drawing any type of diagram, is to make sure it doesn't look like a pyramid.

As a matter of fact, I often will draw a diagram laying on it's side just to completely avoid the visual image of a triangle.

If you put 2 under 2, and so on, its going to look like a pyramid. However, if you draw it un-balanced, it will not come out looking like a pyramid.

In other words, while we all like to show the best possible outcome, if we un-balance the distribution, it appears more as a business organization. And, remember, perception is often another's reality.

If you leave blanks in your diagram, those who have a MLM-mindset will be able to fill in the blanks for themselves. Those that have a Business mindset, will see it for what it is, a Business Opportunity.

[Colin Durkin Company: Global Wealth Trade Corporation Contribution Level: 3]

The funny thing about the pyramid diagram is that every organization in the world almost looks like that. Does that mean everything is a pyramid scam? The U.S. government, The Catholic church, Banks themselves, The entire global economic system, these are just a few examples of pyramids. This model is used because it is the strongest structure, when looking at a business it should have a pyramid shape. The problem with the media and a lot of the general public is that they are looking at the wrong thing. Even the term pyramid scam is very misleading, because it doesn't actually describe what is happening. When it is illegal, there is no product being moved or the so-called company has a crappy product to try and make it seem legit. That is what the Bernie Madoff's and the Charles Ponzi's did. Madoff made fake investments and paid fake dividends out of the money put in by the new investors to the original ones. Charles Ponzi did much of the same only he masked his operation by selling stamps as his "product". People who don't know how to read a compensation plan, couldn't tell a Ponzi scheme from the U.S. Federal Reserve if no names were attached to them so I wouldn't worry. Also worth noting is that often MLM companies take on a diamond shape, the people in the middle making the most money because they joined during the exponential growth phase of the company and are still working the business. Obviously there are deviations but that is pretty much the way it has gone for most MLM companies. So when someone asks you if your company is a pyramid scam. Ask them if they are looking for a pyramid scam & do they know what to look for. When they answer no, say good... neither was I and I DO know what to look for, that's why I joined XYZ and continue on.

[Alison Pena Contribution Level: 1]

"Pyramid scheme" is a misdirection but the key is what is underneath it, actually - ideas about fairness and trust and fear of being taken advantage of or pushed out of a comfort zone. MLM needs no defense and, by objecting to the characterization, it gains weight. By a network marketer's kneejerk reaction to the term (yes, I've done it too), we miss the real communication that we could discover with questions - just like any objection.

MLM is a working business model, tried over decades in some cases, where individuals can become business owners under the umbrella of a company which provides infrastructure, products, services & training for a relatively low start-up cost. MLM business owners are paid for their direct sales and for referring others and helping them succeed. Referral bonuses for a new employee and being paid a percentage on the sales volume of a team is consistent with the structure of most large sales organizations, whether financial, real estate or whatever, not just MLM. MLM companies, products and services come in good, bad and indifferent, like any company, and succeed or fail for many of the same reasons (company, product or service, infrastructure, training, timing, team, capital, etc.)

Anyway, the bottom line is, if we defend against the pyramid scheme objection, with all the emotion that raises in both of us, we never know why this different business model elicits such a charge instead of, "oh, that's unfamiliar to me." Ask past it and see what you discover.

[Joyce Penner Company: Life Force International Contribution Level: 8]

Alison

By a network marketer's kneejerk reaction to the term (yes, I've done it too), we miss the real communication that we could discover with questions - just like any objection.

I like that. Thanks !
To your success,
Joyce Penner

That's unfortunate that the media went along with the stereotype of pyramid scheme. It just reinforces to the general public the notion that everything with multiple layers is a pyramid scheme.

When I was at my companies' convention a few months back they showed diagrams of some of the top earners' organizations in the company. All of the diagrams looked different, yet they all took a similar shape of a diamond. No where was there a pyramid anyway!

[Jenny Lens Contribution Level: 1]

Thank you for posting this great question and the many wise comments. The main reason I rarely watch any TV news, be it local or cable/satellite, no matter whether left, right, whatever POV, is the sensational distortion of everything.

I am a news junkie, so I turn to the net to read all kinds of POV and in more depth. MSM, or mainstream media, are filmed news tabloids like we see at the checkout counter at grocery stores. They think that's the only way to grab people's attention, so they can make money and stay in business.

I MUST remember that when the newscaster (TV, net news, blogger or print) says/writes something negative about this line of work/career/income op. He/she is doing what they all do: push people's buttons to keep ratings up.

Yes, it makes our work more difficult. But that is why staying on point and not getting emotionally involved is the best answer. I bookmarked this page and will be blogging about it too.

I created my own site MERELY to post news articles about the need for my product/service and news about the company. (BetterLifeInfo.com. I am radically changing it. Moving my network marketing business info to another site. Focusing existing site on life coaching, esp for network marketers and small businesses).

I can point people to my site -- IF they really want to find out more. But I never have to engage in these discussions. Or I can talk about the content I've found which negates these knee-jerk, thoughtless "it's a scam, pyramid, Ponzi." When people say that, they have issues. They don't think about some very well-respected, companies with decades of proven business success, recognition, etc.

Years ago, I was briefly involved in Herbalife. I will never forget David Horowitz's condemnation on TV. It literally brought the company to its knees.

TODAY we have the NET, we have OUR sites, blogs, etc. We can fight fire with fire by sharing the stories you have shared. We have far more training opportunities. We also have a lot more history of long-established network marketing companies.

It's all about PRESENTATION and EDUCATION. That's why attraction marketing is gaining traction.

[Jenny Lens Contribution Level: 1]

The exaggeration in THIS industry is causing as much harm as a newscaster. When we all clean up our act, it will be a force so powerful the message will be loud and clear. Let's behave as we want others to behave!

I love the ops one has in this industry. I am meeting GREAT people -- giving, wise, caring, not in my business, but who love helping peeps. So I don't want to come across as purely negative. But there is a preponderance of people who make it very difficult to do what we do. Most are IN this industry. THEY turn off more peeps than a local newscaster.

It's the lack of professionalism I see here, Facebook, the net in general.

The emails and postings about some great webinar or ebook to help you grow YOUR business. In reality, it's nothing more than a long-winded pitch for you to use THEIR product! Bait and switch reigns in this industry.

The endless, long-winded, pointless vids shot at noisy beaches or lakes or while moving (which make me seasick). It's the endless hype which buries whatever good substance is there.

The vids which do contain substance, allegedly training vids, right here and elsewhere, need serious editing, plus this thing called pre-planning. Hitchcock story-boarded all his films in his head before ever turning on the camera. Woody Allen leaves fav scenes on the cutting room floor, IF they make his films too long.

How about outlining in Word or text, or some kind of organization before talking?

IF you can say something in 2 minutes, why say it in 5 minutes? Most peeps want it fast, now, and to the point. When you are teaching someone HOW to do something, take your time, but be organized. IF it's an overview, the Why, get to the point!

Sometimes I'm in a research mode, and don't have time to watch HOURS of your vids. Or your vids are really mindless because you are so in love with your company or product. Ever thought of asking OUTSIDERS what they think? That's why Hollywood runs test screenings.

Yet when I responded to a major network marketer about his vids (per HIS request for feedback), he accused ME of being negative. ME? He has no idea my rep. I'm a fun-loving, positive, famous early punk rock photographer, which requires a ton of positive humor, patience and perseverance, and a courageous wild streak. People turn to ME for positive reinforcement all the time.

IF you can't stand the heat, get out of the kitchen. Shoot amateur vids and then shooting the messenger, how mature is that? I don't care if he is a multi-millionaire, his methods and ways of dealing with people tarnished the industry because he turns peeps off. Yes, the 97% who don't "get" it. Well, maybe more would "get" it if the message were delivered more humanely. Moving on . . .

The unwanted phone calls from peeps selling me their services because my phone number is online for real clients.

The connections offered here and Facebook, with NO personalization, NO reason anyone is reaching out to me. I keep reading that people connect with people, not companies. Yet over and over, I don't see that happening. I join a group or write a post and next thing I know, someone thinks they are an associate of mine. Really? Who are you? Why should we connect?

The hype, the endless splash pages promising riches galore.

How can so many people be the number one this or that?

How can so many promote so many different companies, but they are all the best, number one?

Does everyone really live in a HUGE home, or on the beach?

Nothing like someone posing in a tropical location, but who really live in Appalachia or the desert or suburbs or downtown. Nothing wrong with that, but let's get real.

OR when you sign up for a free ebook or video, the ENDLESS emails pitching this and that, pushing you.

NOW when we become real and authentic, and talk like normal peeps, we won't scare off so many peeps. There's so much focus on recruiting because we come on so strong, people flee. It's great to be excited, but can we just cut through the crap? Let's give the newscasters and others LESS ammo, by being better at what we do.

That's fighting fire by removing the fuel. Don't give peeps anything to use against you. Of course I know I'm preaching to the choir. So many say, well, I'm getting great results with this splash page and that program. How much better would you do if you actually reached out to peeps in a more thoughtful, less hype manner?

I wonder . . . I don't think anyone has the answer. but I'm appalled so many into attraction or permission marketing HAVE NOT READ SETH GODIN'S book on Permission Marketing. Or many personal development or other marketing books.

Let's practice what we preach. I am working at it. It's not easy, but that's the only path I can take. What about you?

Cos I flee from all of you with your in-your-face splash pages, emails or postings about help and a great call, lesson, vid which is nothing more than a pitch for your company. Tsk tsk, don't go after newscasters til you clean up your own act.

[David Frey Contribution Level: 2]

The funny thing is, as Brenda mentioned above, that once you get a large organization, it doesn't look like a pyramid at all. It looks like a diamond.

If you were to map out my organization, it almost looks like a perfect diamond.

And guess what, I was the Senior Vice President of a $500M company and I was at the top of a pyramid.

All the best.

David Frey
MLMcoachTV.com

[Larry Bilich Contribution Level: 2]

Hello Jenny,

I loved your post and thoughts...I could not agree with you more.

Keep sharing your thoughts and Ideas with us all. Your thoughts and wisdom have a lot of value and will offer education so that some day down the road maybe...just maybe....The masses will start to look at our industry (including the Media) in a much more positive way for the good of us all...

Wishing you all my best,

Larry B.