Isn’t MLM a Pyramid?

 

If when you hear the acronym MLM, you think of “pyramid” associating it with a scam, I totally understand. Some time ago, I was in the same place you are today and did same thing. I was super-scared when people approached me with MLM businesses.

As a matter of fact, the term “pyramid” has been used for an illegal company which has been solely designed to scam people. It doesn’t have a real structure, a budget or even a real location. It’s just a scam.

On the other hand, MLM companies are legitimate and last for a long time. They have a budget, a manufacturing plant and an administration. The main difference between a traditional company and an MLM one is the way they distribute their products.

Have you ever bought stuff from Avon, Cookie Lee, The Pampered Chef, Jafra or Herbalife? Or have you at least heard of them? Well, you guessed it. They are MLM companies. You don’t think they are pyramid scams or schemes do you? They aren’t. Those are solid companies and have been in the market for many years.

And how do MLM companies sell their products? They sell them through distributors who are positioned one under the other according to their order of arrival in the company. This structure resembles a pyramid. But don’t you think all companies have a similar structure?

Have you ever stopped to think how a traditional business is structured? There’s the head of the company: the president who earns the biggest salary, followed by the vice-president; then, come the managers, the supervisors and the workers. And the levels of income depend on the position of each person.

In a MLM company, it does not matter where the person is positioned or when he comes in. His income depends mostly on the amount of people he has recruited and sometimes, on the frequency of recruitment as well.

MLM companies invest a lot of money in research and development of their products. They are committed to manufacturing the best quality products on earth. They are far from being a pyramid scams.

As a matter of fact, the pyramid structure is considered to be the most stable shape for projects involving large amounts of stone or masonry. So, that idea of stability was probably transferred to the traditional business format which continues being used to this day, even by MLM companies.

I would love to hear what you think. So, please, feel free to live me a comment.

 

To your success!


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