For a lot of folks the first thing is "Pyramid Scheme" or "Scam".
When I write "Traditional Brick & Mortar Business" what is the first thing that comes to
mind? Is it "Pyramid" or "Scam" or maybe "Unfair"? No? Maybe it should be.
Here is an organization chart for a common, brick & mortar business:
That, my friends, is a pyramid, and there is a good reason why a typical business looks like this.
Leverage. A typical business leverages people in order to create profits for the company. And there is absolutely nothing wrong with making a profit. There is a problem with this model, however. The only person who truly benefits from all that leverage of human capital is the Business Owner, the person a the top of the pyramid. No one, absolutely no one, in the organization can leverage those below them in order to make more money.
When more staff are hired, does Junior or Middle Management make more money? No. More than likely, those folks in Junior and Middle Management start to worry about their job security. Which one of those new staff members is going to take their place? No one, except the Business Owner, can leverage another person in order to improve their economic situation. What I mean by this is: Everyone beneath Business Owner gets paid for working X # of hours, and only X # of hours, during each day. No more. No less. The Business Owner, however, gets paid for working X # hours
PLUS all the hours everyone else is putting in. If you are working for Microsoft or Philips Petroleum or Nabisco or Sprint,
that is a lot of hours.
A typical Network Marketing business has exactly the same structure, but everyone is able to leverage everyone else in order to increase their income. For example, when I bring in a new associate to my organization, say Tom, I will get paid for the time I work and for the time Tom works. And when Tom brings in a new associate, say Sarah, into our ogranization, Tom will also get paid for the time he and Sarah puts in, and so on.
Furthermore, there is every likelihood that someone, say Frank, who is beneath Tom can make more money that Tom makes even though Frank came into the business after Tom. That will never happen in a traditional, brick & mortar business. You know what I call that?
I call that: Fair. If Frank works harder than Tom and creates more business than Tom, shouldn't Frank be paid more than Tom? But if a Junior Manager in the model above, works harder than a Middle Manager, will that person every earn more than the Middle Manager? Maybe.
IF that Junior Manager gets promoted. But what if that Junior Manager isn't well liked by Upper Management? What if that slacking Middle Manager also gets promoted? A lot of ifs come up that will prevent a hard worker from getting justly compensated.
If you don't like the way I've explained this, then I ask that you spend about 20 minutes with a short video titled "
Brilliant Compensation" and listen to a Harvard Ph.D. explanation. Then tell me that Network Marketing is just a "legal Pyramid scheme", but the brick & mortar business you probably work for (and whom you hope won't lay you off in before Christmas) is not.
BTW, no one, and I mean no one who took up Network Marketing was ever laid off from their business. They may have quit, but no one was ever laid off. Think about
that when the boss calls you into his office, asks you to sit down and begins with "I'm sorry to tell you this, but I have some bad news."