Is Network or Multi-Level Marketing (aka Pyramid Schemes) a Good Option?

Mar. 11, 2015

Dear Cathy:

I am seeking to become a legitimate business owner but my friend would like for me to join him in a Network Marketing venture.  Is this a Pyramid Scheme?  Legitimate Business Owner, Missouri

Dear Legitimate Business Owner:

Yes you said it.  Network Marketing is also called “Multi-level Marketing (MLM)” (aka Pyramid Schemes).  Multi-level Marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors.

Do you seriously believe you can become a successful business owner in someone’s downline?  If you get involved in these types of ventures, you will not have your own business, you will be working for someone else.  Many people who try to gain titles and positions and have hopes of rising to the top never make it.  They carry a revolving door of inflated hopes destroyed by reality.  

These independent distributors recruit individuals to sell a variety of products including household cleaners, diet ads, vitamins, beauty products and much more.  They recruit members of their inner circles, such as family, friends, neighbors, co-workers, etc. These people in turn are advised to do the same.

They especially target groups with large networks on the Internet or in the community.  They look at places where people congregate like churches, libraries, meetings especially toastmasters and other business meetings, conferences -- anywhere there will be a gathering of people.  Also they know that people involved in projects or business owners go to Office Depot, Staples, Office Max, etc. -- so they also recruit others at these types of businesses.

So many people have gotten involved with these Pyramid Schemes and don’t know how to get out.  The reason they don’t know how to get out is because most of the people who recruited them in the first place were family members, friends, neighbors, colleagues including business owners, educators, pastors, police officers, community and civil rights leaders, etc. - everyone that you think should know better -- right?

Because people are so close to the people who recruited them, they rarely sit down and conduct research or investigate the scheme.  Many admit they have lost friendships and had to distance themselves from family members and others who have become obsessed with selling or recruiting them for these illegal Pyramid Schemes.  The more these people invested, the worse their reaction to you.  So get out before it’s too late!