Three Important Things to Say to a Prospect About Pyramid Schemes

No matter what level you have reached in your network marketing career, you will be continually subjected to one comment from many of the prospects you encounter. You can be one day into your business or a 25-year veteran of network marketing; you will never be able to avoid this one verbal comeback from a lead:

"Is it one of those pyramids?"

I know I have heard this comment from dozens if not hundreds of people. They may say it in different ways and some may even be too afraid to actually say the words to you. Instead, those people use their hands to make the shape of the pyramid and say, "Is it one of those things?". As if in saying the word aloud they will be swept away by the network marketing police.

I believe that most people have no idea what the term pyramid means when using it in context with multi level marketing. They must have heard that term used in the past in some form of negative connotation and simply regurgitate it without really knowing

what it means.

So, now that we know that prospects will ask you this question, what is it that we say to them in response. I believe that there are 3 very important answers when addressing this issue.

1. The very first thing you should do is pose a question right back to them. That question is, "what do you mean by pyramid?"

You have to understand that you will not be able to provide an accurate response unless you truly know what the prospect is talking about.

Let them explain it to you. In most cases, the prospect will have no idea what they mean. It would not be nice to insult the person by telling them that they should not make comments unless they know what they are taking about. Instead, presume that you know it was said in a negative fashion and then proceed to explain the points noted in answers 2 and 3.

If they do have a specific answer then address that specifically. One common explanation made by prospects in reference to pyramids and network marketing is the following: "It's when the person at the top makes all the money and the people at the bottom get screwed."

If they say anything close to the above, that is a perfect opportunity to delve into the North American corporate structure. The first thing I say to that is, "You mean like your job." Most people don't realize that corporate America if the proverbial pyramid. You normally have the president or CEO at the top, then the vice presidents followed by middle management, then supervisors and finally the regular workers or support staff. Use your own company or the prospects company as an example.

Once you explain that in the regular world, the person at the top will always make the most money at the expense of the other workers, then I believe that the prospects guard will be let down and at that point you can then move onto the next two answers.

2. Explain the difference between network marketing and an illegal pyramid scheme.

Generally put, network marketing companies use independent representative to market products or services. Whereas, most businesses use the common methods to sell their goods such as having stores and employees, and advertising through media ads, flyer's and telemarketers.

The most important part of the above paragraph is that products or goods are being exchanged. That is the difference between illegal pyramids and legitimate network marketing companies. Pyramid schemes involve no services or products. People simply pay a fee to join a company and then must recruit others to do the same thing. At no point do these people ever provide a value to consumers such as independent representatives do.

Now there are different ways that you can explain the difference between multi-level marketing companies and pyramid schemes, but the main thing is that you emphasize the point of products and services being exchanged.

3. Explain that network marketing companies are governed by the Direct Sellers Association and other government entities.

Most legitimate network marketing businesses have to go through strict rules and regulations before they are listed under the countries Direct Sellers Association. In the USA it's the Direct Selling Association while in Canada it's the Direct Sellers Association of Canada.

Also mention the organizations that govern and regulate companies that operate in their respective countries such as the Better Business Bureau and for example in Canada Industry Canada. Make sure you provide the necessary websites for the prospect to do their due diligence.

The more information that you can provide to the prospect to prove the legitimacy of the network marketing company you represent, the more comfortable you will make that person feel.

Once you have supplied these three answers then the prospect should be more receptive to hearing about your opportunity. if they are not, then move onto the next person.