Hello friends, ah going for an exciting ah topic which is ah in network marketing business if you are in ah you know MLM network marketing business then you may have ah you know this question, ah you know probably you have the question or you may be asked this question, ah you know again and again okay that ah is network marketing ah business same as a pyramid selling.
Okay because people must have come across this ah ah this called, you know, Pyramid. So, you must be wondering that is it, one and the same, okay? So, now we will, you know, get into understanding is network marketing a pyramid selling and if you have been asked this question and how would you address the question, let’s dive into it. So, let me just share my screen and we will be Okay.
Alright. So let’s start with what is the difference between echo marketing and Pyramid Selling, okay? Now, the anything you see, you know, in order for it to be an organization or a or a structure, okay? It has to be a pyramid, okay? If you see any structure, you know, in order for it to be, you know, solid structure.
It has to be a pyramid, okay? So, now, because you must have a come across the term, ah you know pyramid before or you must have seen it before or all of us have seen it before ah especially coming from where we come from for example you know you are from you know ah You are from a job background, okay? So in a job environment, you see that you know, you work in a corporate structure, which is just exactly like a pyramid.
So, coming from there, if you are or any of your prospects, you know, they always think that okay, it’s exactly the same, it’s, it’s a structure, it’s a pyramid. And ah, ah, so, they, they have that impression that it is ah, you know, ah, as a pyramid Selling business model where the person at the top makes all the money.
Okay. In a corporate environment, in a company, in an organization, okay. If you see the person at the top, that means the CEO of a company, you know, that CEO makes all the money.
Okay, or most of the money. So, it, in a corporate structure, you know, the man at the top, okay, the chief executive officer is the highest-paid employee, okay?
Most of the organizations, if not, all, I don’t know about ah you know if it is in all the donation but most of the donations will find the CEO is the highest-paid employee of the organization and then they will have ah you know president or vice president of different operations and then ah GMs or general managers then managers of organizations and then there are the people out there who will be reporting to the managers, okay so this is a typical hierarchical sort of a structure when we work in that environment then we feel like okay you know, network marketing is exactly the same. And, you know, so that means the person who is talking to me, okay, so must be making more money or you will be making more money than me, okay? If it is so, okay, that means, you know, it becomes a financial peril.
So, financial or compensation-wise, it’s a pyramid where the person at the top will make all the money. If, that is what the compensation structure is, then it a completely wrong.
Okay, so that means there is, it is illegal to have in this, you know, day and age, to have a business model, where, you know, the person at the top makes all the money or highest income, it’s, it’s completely wrong. Okay, so these are called also Pongi schemes, okay? These are illegal Ponzi schemes or pyramid schemes and you as a network marketer should be aware of it and you should stay away from the schemes, okay, and also you have the responsibility to educate others. Okay, so that they know the clear difference between a Ponzi scheme, you know, a Pyramid Selling Scheme, and a network marketing business, where? First thing, you know, how do you differentiate?
Okay, if you do not have the know-how, what is the difference? You have to you should know.
That is, in a pyramid selling business, okay? You are paid, or the person who is involved in, you know, in a pyramid selling. Um, you know, paid on recruitment about how many people you are getting into the business, you are compensated, you are paid ah based on that, okay?
Not on the products or not on the sales. Okay, so that is clear difference guys, you know, in order for a company to operate in a legitimate network marketing business, it has to compensate its business partners, or its distributors, okay, based on the sales that distributors organization generates not based on the people they get in. Okay, so that means there has to be a clear difference ah ah here where the compensation has to be paid on the volume, on the sales.
Just like any other organization guys, in any other organization, if you see, you know, all the employees are paid, if, you know, the company is profitable, okay? If the company starts to make laws and, you know, after some time, probably, you know, the company cannot sustain itself, okay?
So, Every business ah in order for them to sustain themselves they have to make a profit. Okay. And the profit is made based on the sales that they generate. okay? So the sales you know, unless the expenditures, okay, and that is what the profit is.
Okay, the revenue and the expenditures, the difference is the profit. So, network marketing companies are exactly the same, whereby they compensate, okay? They are ah, you know, ah, suppliers or they are distributors. Based on the bring in to the company and you know based on how much of sales that ah network marketer brings in and then the compensation structure ah in such a way that you know they share the profit ah part of the profit with the ah business partners or the distributors okay so you have to very clearly understand that recruitment versus sales okay? You should not be competitive based on the people you recruit but it should always be based on the sales revenue it generates, okay, or you generate.
The next thing is the compensation plan. If in your organization or in a, in a company, which is a network marketing company, the, you know, the compensation plan or the profit-sharing business plan and such, that the person at the top, will always make, you know, more money than the person at the bottom, okay? Or, the person who he or she brings in to the, to the, to the network, then it is completely flawed, okay? So, that is compensation plan has to be in, in such a way, that the people have to be compensated you know, based on their efforts, based on the structure, for example, if I ah come into the business, and I, if, I come into the business and I am the one who you know 80% of the sales.
Okay, of my upline, okay?
So that means somebody got me into the business and that person, you know, and myself, I bring in 80% of the revenue of his organization. So, that means he, that person who brought me in should be making less money than me. Why? Because I am the one who is bringing the most of the turnover. The profit-sharing has to be done in such a way that I share the most of the profit with this person.
Because he just brought in 20%. I brought in 80% of the ah ah turnover. So you have to be very clear on the compensation plan.
It has to compensate based on the efforts because I put in the effort. You know or based on the turnover.
Okay, based on the sales that are brought in by ah you know the different people in the organization. okay? So, that’s legitimate network marketing businesses should have the compensation plan in such a way that, it should be compensating people based on the revenue, based on the sales that they come in or the percentage of sales that they bring in, okay? So, that is another characteristic.
The third characteristic is the circulation of money.
Okay, circulation of money means ah, you know, if ah ah I get into the business, okay? And ah based on the company’s policy, if I have to send money to someone, okay, like, you know, I have to spare, send, you know, $30 or $100 to this person and another $50 to this person and another $10 to this person. So, that means this is a pure pyramid, okay? So, that means this is not a legitimate business, that is no product, it is a kind of money circulation, it’s upon the scheme. You have to stay away from that, okay?
There has to be proper legitimate network marketing in business should have a compensation plan in such a way that the people are compensated based on the sales they generate, the goods or the service they move, not based on ah the recruitment of the people or not based on the circulation of money, how much of money I receive from other people in the network that is not the right network marketing business, okay? So you have to stay away from it and also let the people be educated about it, okay? Then high startup cost, okay? So, the Ponzi schemes or the, you know, Pyramid schemes, have usually high startup costs.
So, that means, for you to join or to get started in the business, you have to fork out quite a bit of money, okay?
And that, that to me says that it’s not a right, right, you know, network marketing business, okay? Why? Because why should, I will be paying money because there is a company out there, that takes care of the manufacturing, and they have the entire infrastructure set up, and why should I be paying just to join the business just to become a profit-sharing business partner? So, what happens is if I am, I have, I have to pay a large sum of money to get started into the business, that means, you know, this company is after, after my money, okay, is, they don’t want to sell their products, so their products, but they are after collecting money, okay, you have, you have to be very careful with these companies and you have to stay away because there is a high likelihood that that company will just, you know, disappear with your money after few years.
I would not put my hard-earned money into these kinds of ah you know ah ah company’s where, you know, I put all the efforts in after some years, you know, all my efforts was waste because the company filed bankruptcy and they are no more there, okay?
So, that’s very very important. So, hope you, I know, it made some sense to you guys, you know, if you want to, learn more, we are organizing a free three days boot camp, okay? Three days intensive where it’s a boot camp, that means you will be ah trained only trained but you will also do yourself. Three days you know ah boot camp intensive ah you know this is day one where you will focus more about your mind and game planning, goal setting mechanism and how you can manifest whatever you want ah with a proper, ah you know programming of your mind and we’ll be briefly touching upon the marketing strategies, ah you know how you can ah you can grow the business or the ID very high level we will discuss pool marketing and push marketing and then day two will be more on business-building activities we’ll discuss how do you make a list of your people that means we talk about the push marketing we’ll talk about the technique of memory jogger and how to talk to people and when you talk to people what are your right mental attitude and people ask you questions and how do you answer those question and how you can expand your connection, your network, okay? So we’ll discuss three ways, three powerful ah you know you just don’t have to bug your friends and family members.
You can go reach out and talk or you can connect with other people. There are three powerful ways we’ll discuss that. And day three we’ll discuss ah you know in detail about these three methodologies and you know will get you to ah on every day that homework you have to do and so that you do it yourself, ah you know ah while we are going through this intensive ah you know boot camp, okay? So, we’ll discuss it on the third day. It’s very interesting.
Let’s talk about not only recruiting people or you know, how we can grow your turnover but we’ll discuss how do you build depth, how do you build leaders so that you can make your business sustainable, your income sustainable month after month, year after year, you can keep that income growing, okay? So, the only way you can, you know, join the, You can, you know, join the boot camp, 3 days Bootcamp is by joining our completely free Facebook group, okay? This is, you know, by joining the Facebook group, you will, you know, get a copy of my, you know, my book which is, you know, out there, let me just grab hold of a copy of the book, so that if you do not know already, I know, so you will have a, you will have the opportunity to okay I’m I can’t find this book but lost leadership is the book which I ah ah okay.
Okay ah, launched leadership is the book, ah you know which ah ah you know if you haven’t ah got hold of a copy of this book I would highly encourage you to read this book but if you join this Facebook group this you will get a copy of this book completely free. Okay.
Ah, it will you just have to give your email address. Ah you know we’ll send it to you in the process of your registration in the Facebook group. Not only that we will have you know every week we will have training there, you know, but you’ll also have question and answer sessions there, twice a week, you, we have, they bring your prospect webinar where you can either get your prospect and, you know, they can see the business presentation, about the business opportunity, you know, network marketing business, and they can sign up in your own business, okay? We’ll have monthly challenges just like the way, you know, you have been invited for the challenge now, Three Days Challenge will have multiple different kinds of challenges where you can be forced to do you know you can force yourself to do, and, and be active in your own business, okay? And you will have, it’s, it’s a community, okay, where you’ll get an other fellow network marketers who are fast moving in this business, you’ll learn from them, they will be there to, you know, help you out if you have any questions, I’ll be there as well if you need any of my help, and you’ll have exclusive members only online and offline events, where you can come and attend, and ah, offline event ah we have it in multiple different places and exclusive members only measure to our ah book club okay where you can learn ah you know from these different books what you suggest then you can share as well book club so ah for you to join you just have to click the link you know below in this ah video if you are ah you know ah watching it on the Facebook or on the YouTube ah it’s the link is on the description you can go and join the Facebook group and ah you can start to learn and ah you know ah and join these three ah three days, ah you know intensive ah you know boot camp as well.
Okay, So with that I am ah done. Guys and ah you know hopefully it ah business presentation ah ah added some value to you or the career today’s session. So go ahead, educate other people, educate yourself, and understand how you can handle this question. And let’s start growing our business.