Tuesday, January 20, 2015

So aren't you in one of those Pyramid Schemes? Well let's take an honest look..

Pyramid Scheme.. 

Ahh the ever elusive title tossed around by so many who can hardly define it correctly when asked. Often times, here is the cliche definition slammed towards any guy or girl who has chosen to get involved in a legit home based business, affiliate marketing, direct sales, or Network Marketing, whatever you want to call it. Can you guess it? Well here it is...

"The guy at the top makes the most money and everyone down the chain loses."

That is true in that of an actual pyramid scheme. Let's define an actual pyramid scheme. A pyramid scheme is a false promise of a turn around on investment in a short period of time without ever receiving a tangible product or commodity.

Meaning, I invite you to check out an opportunity. I have no products, no company. I am just saying we are going to make a bunch of money by putting our money in the hat first. Yes eventually new participants will only feed the top of the pyramid. Making it illegal and a pyramid scheme. Jail time, Bernie Madoff.. etc

Here's a great example illustrated of a pyramid scheme:


Well first lets set some things straight here. The Network Marketing industry is a legitimate industry and it's a professional one. In fact internationally, it produces roughly $167 billion dollars a year. There are plenty of very very successful companies some of which you may have heard of and in fact purchased products from, Mary Kay, Avon, Tupperware.. etc

So to give you an idea how big that is:



This industry, It's not for amateurs. To attain an above average income you must first attain an above average skill set, and you must master leadership and creating leaders.  This generally is what makes people go home early.

Also, you must have a strong desire for helping people, a backbone for taking crap, a very giving heart and you could say part of it is meeting people where they're at in life.  In 2015, people are struggling financially, health wise, people are out there looking for more.  So you gage where they're at and go to work on bringing out the best in them and helping them to identify and meet their needs and desires.

You can't change people, only they can change themselves. Some may initially reject you or resent you, but in most cases if they stay true to the grind, they're later thanking you for changing their life.  But this will never work if you don't work.

In a world that is becoming so quick to look for hand outs and constantly wanting to be taken care of, you can imagine why it's quality over quantity here.  Life responds to people who work for it, not need it.  The President is currently preaching Associates Degree's paid for by Tax Payers. Why would you work to pay for an Associates Degree if it's given to you?  Most people are getting in line for this stuff, so when you have to put skin in the game to earn something, inherit risk and put in the sweat equity to receive the rewards, you're bound to lose people.

Exactly why many go home and they go home before they even hardly start.  This industry isn't a lottery ticket to riches. That's why many never make any money here.  They join thinking you just sit around and it all happens for you.  You can show up to many jobs and kind of slide under the radar and still go home with a check. Many choose this route, but again it won't work here.

In a legitimate network marketing company. Results take time and just as when you start any business, you don't open the doors and you have millions of dollars flooding into your hands.  It's called NetWORK marketing for a reason.  Name me one business that during year one their profit margin was super high.  It's a process and any business owner knows that.  In fact, often times in traditional business you can spend years in the red until you ever see your first profit.  In fact I have a friend that started a catering business and it took her 24 years to break even and get all that she invested back.


This is the most important thing you must realize in Network Marketing. You are the top. Results are dependent on you. Sure there may be many people who have joined the business before you, but you will never financially benefit most of those people because of the balanced two teamed system. Contrary to "pyramid schemes" anyone can out earn anyone.

In my current company.. A guy named Evan Schultz enrolled a guy named Luke Hessler. Luke has out earned Evan in some months by as much as $20,000 (results not typical, because Luke's not typical). He is one of the brightest, most dedicated, hard working guys I know and if you ever have the chance to meet him, you'll know why he makes that income. Now, I'm not discrediting Evan here.  He's one of my good friends.  I am just showing you that it's possible.

In a pyramid scheme, this is not possible. You can not out earn anyone who has enrolled you.  In Network Marketing you can.  Meaning the playing field is fair at all times.   

See I think one the main disconnects is in school we are only taught to work for someone.  Very few people I encounter on a daily basis are entrepreneurs or entrepreneurial thinkers. Many have ideas or want to do something different, but the common theme I find is they are too afraid to even try. Contrary to what school teaches that failure is horrible.  It's actually a good thing in life. It means you are trying and you are growing.

But also I believe it's because we are not taught what it's like to think from the top down down or starting something of our own.  So we naturally don't understand how the entrepreneurial process works.

I would argue that if I showed you the organizational chart of your very business you either own or represent... The organizational chart when laid out on paper would represent a shape of none other then a pyramid and you are somewhere in it.

And I bet you can not out earn most people who brought you into your company or if you're a business owner, no one below you will ever have the chance while working for you to out earn you. 

Man isn't that amazing, magically your organization is in the shape of a pyramid. Yes, hate to break it to you. And if you argue pyramid schemes are "the guy at the top makes the most money" same goes for your business or the business you represent on just about, if not every occasion.

So here's how to know you are joining a legitimate Network Marketing Business... First off they are customer driven.  Over 70% of my current company is customers who simply love the products and are consuming them for their own health benefits.  Second off, they will be a part of the Direct Sales Association or DSA.  Thirdly upon joining they will have you fill out a W-9 form that goes to our United States IRS for tax purposes who if the business was a scam wouldn't have you fill out a legal form sanctioned by the United States government.



There is also tremendous tax benefits to being involved in a Network Marketing company, which I'm not going to go into in detail in this blog, but here's a tremendous book and here's the link to the website where you can learn all about that. http://howtodeductalmosteverything.com/

So chances are if you made it this far, you either are trying to still find why industry isn't legitimate or you are intrigued.  Either way, I just wanted to lay out the truth.  Trust me, I've gotten just about every look imaginable, just about ever slander, so you won't hurt my feelings.   

I'll close with this... If anyone is promising you fast money, it's more than likely a scam.  Yes, there are hundreds of opinion articles against these companies, but can we agree that we don't know what we don't know, and most of these opinions come from people who quit and went home early.  

Yes, in a world increasingly looking for more free hand outs, there are none here, so yes some people lose money because they join for a month or 3 and say it didn't work.  They never develop.  You can't open a business in the mall and close it in a month and say it didn't work.  You have to ride out the waves of starting a new business.  Bottom line, great things take time.

I guarantee you if you check the amount of people who join the gym Dec 15th to January 1st and you go back and look at those numbers by February 1st or March 1st, the numbers have significantly dropped in attendance.  So the gym must be a scam then because you didn't show up.  No, it's not the gym's fault, it's you! 

Network Marketing is made to be built part time while you pursue other things.  It's not made for a primary income and full time right away. Take advantage of the tax deductions of your traditional income and save yourself some money.  It's an asset you build on the side.  And I would argue the network of people you encounter in these companies is the most valuable part of this process.

It's absolutley changed my life.  I have launched a speaking career, I'm working on publishing my first book, I am healthier then ever. I am over a year sober from alcohol.  I am outgoing and positive and I feel as if my life has re centered itself. I gave myself a chance in this industry and I will continue to build it part time.
Speaking to a group of 8th Graders at Harvey Austin School 97
In closing here's my advice:

Take ownership of your life and give yourself time to grow.  Show up and persist. Hang out with the right crowds of people, the ones who encourage you, not drain you.  The one's who breathe life into you, not take the life out of you.  Whether it be network marketing or any type of adventure and journey in this life, those are the people who win in the long run.

Protect your dreams, get educated, open your mind, find a vehicle to your dreams, live an abundant life full of possibilities and may your heart be filled with joy and happiness.

This is America. Enjoy the freedom we have to make our dreams come true. Semper Fi my friends and always Stay True! 

God Bless!