Table of Contents
Last Updated on 2014-12-19 by Kassandra
Previous Post: Why We Should Work Together
Next Post: Part 2 of 6 – Affiliate & Network Marketing Myths BUSTED!
In my (albeit short) time as an entrepreneur, I found that the subject matter of this 1st post of 6 myth buster vids is kind of a hot topic. It’s something EVERYONE does, but not everyone gets paid for it. And it’s usually because people don’t understand it, and have negative and usually misguided impressions about it. So here’s to breaking those walls!
===============================================
Please note that there ARE SOME differences between network marketing & affiliate marketing, which I’ll get in to in a different post.
===============================================
Myth #1:
Network (Affiliate) Marketing is an ILLEGAL Pyramid Scheme
An illegal pyramid scheme is a fraud based on recruiting an increasing number of investors. It provides no products/goods or services, and pays according to the number of recruits. It is often confused with NETWORK MARKETING or any company that is MLM (Multi-Level Marketing). Be sure to do proper research before joining one of these companies, as there ARE unscrupulous people out there.
This argument is most often used by people who are afraid of (or don’t understand) what you’re doing. When they use this objection, this “test” obviously cannot determine legality as most businesses and organizations (including the government) have the same structure.
Myth #2:
Only the Guy at the Top Makes All the Money
This statement accurately describes any J.O.B. (Just Over Broke) in the world! The difference between a job and having a position in a Network / Affiliate Marketing company is that you have the ABILITY to make more money than the people above you — it’s based on the joint effort of you and your team, as well as several other factors.
Income is related to EFFORT not position!
===============================================
If you’ve been subjected to this kind of logic about network marketing / affiliate marketing and would like additional information on how to handle these kinds of objections, you should definitely sign up for emails from me on the matter:
>> Click Here to Get Instant Information on Marketing (traditional, network, etc) <<
I respect your privacy, and your information will never be given or sold to anyone. I just want to ensure you get valuable content to enhance your life and provide you with information that will help you become more prosperous.
Please note that some of the information from the video was received from this site.
Empower Network had a Compliance training session recently where their attorney gave an eye-opening description of how companies can get shut down for having certain characteristics even if they don’t fall into the classic definition of a pyramid scheme. One problem is representatives who recruit folks by telling them there’s no or minimal work needed to make money. Good topic. Best wishes.
Thank you! I actually touch base on that in one of the other myths in this series.
Yes, these are two major fears people have when looking at these professions. Good to do real research on the company, owners, and really understand on how they promote ethically as well. Keep sharing these great tips.
Great post love the pics you did to go with the info too.. So many people get confused you did great at explaining
Thanks so much for your feedback, Michelle!
thank you kassandra for sharing this myth. not too many people are aware of this so its great that you are providing quality value to the public. keep on rocking those videos!
Great post. Looking forward to the next 6,,,er,,,I mean 5 parts 🙂
Thanks for shedding some light on some misconceptions about network marketing!
Mark
My pleasure Mark! If these myths aren’t debunked, people will have easy excuses to hold them back from participating in something they can do in their spare time on a part time basis to work on achieving their goals! We can’t have that now, can we?
This was great I can’t wait to watch the series… I thought network marketing was a dirty word as well hahaha now I see differently.
Thanks! I will bookmark this to share when someone cries, “Pyramid!”
Happy New Year!
Kassandra, thank you for getting these Myths BUSTED here.
It will help others to be more open minded, I’m sure !
Thank you for the feedback, Dirk and Muriël! Really appreciate it. And I sure hope so!
It’s not completely true that a MLM company is not a pyramid scheme because a product is involved. I used to be involved in several different MLM companies and I was told this too, that if there’s a legitimate product involved its not a pyramid scheme. Not true. The FTC actually includes companies that have a legitimate product as pyramid schemes. The way a pyramid scheme is identified is by two things, if there is a minimum order amount to qualify for commissions . Also a company should not give commission on distributors purchases. There should be more commissions or sales from outside customers than other distrutors so the focus has to be on customer sales not distributor signups. That percentage I believe is supposed to be 80/20 but don’t quote me on that. Here’s a link where I learned alot of this . MOST MLM are pyramids that haven’t been caught by the FTC, YET.
http://www.mlmmyth.org/mlms-vs-pyramid-schemes/
http://www.mlmmyth.org/ftc-mlms-with-required-minimum-purchases-to-earn-commissions-are-pyramid-schemes/
also the ftc website on pyramid schemes. I think this is most important because it really doesn’t matter what anyone else tells you is or isn’t a pyramid scheme, if the FTC says it is , well you better pay attention…
https://www.consumer.ftc.gov/blog/spotting-illegal-pyramid-scheme-101
Natalie – you are a breath of fresh air. Thank you so much for your insight, intelligent response, and credible links.