Is it any more different than in the Corporate World?
I’m not going to discuss actual pyramid, ponzi schemes today where money goes up the chain and nothing of value in a bag, bottle or box comes back down. I want to talk about the argument between real world Corporate structured Companies versus Network Marketing, Direct Selling, Home Based Businesses.
And much to my reader’s surprise, this is going to be real easy, short and accomplished mostly with a diagram.
The Traditional Corporate Structure Compensation Plan:
As you can see, the person at
the top, the CEO, makes the
greatest amount of money. If
you also note in this diagram,
there are 5 pay levels,
CEO, President, Vice-President,
Manager and then the humble,
slave labor, hard working employee.
It is doubtful that the CEO ever invites the employee to his home or gets on a training call with him to teach him the skills necessary to earn the same or better income as him (The CEO).
However, with a home based business there are different type pay plans, the binary, matrix, breakaway, uni-level, and hybrids of all (I am not going to go into Aussie 1-up, 2-ups as most of them are negligibly legal to begin with).
In the more ‘streamlined’ Network Marketing structures, you can actually surpass the person above you in level of accomplishment and income.
Next time someone tells you that Network Marketing is a pyramid, where only the people at the top earn the big money, I hope you will remember to draw out the above diagram for him/her. I am not saying the person is going to like it too much (dependent on their own mindset); however, I think you will have proven your point.
~Jennifer
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April 27th, 2009 at 12:22 pm
Thanks for this info. I am still trying to get past the secnod level of my home shopping mall.
I’ll keep at it though.
April 27th, 2009 at 12:52 pm
Building any home business has it’s challenges, but I know, given the right company, support and training, most people can be very successful at Network Marketing. It’s all about people and helping them reach their goals.
Best of Success,
~Jennifer
April 30th, 2009 at 5:55 pm
You make some very good points here. Bring on the pyramid, I’ve had my belly full of CEOs and corporate babble.
May 1st, 2009 at 3:42 pm
Jennifer,
I really liked this article and the diagram! I’ve been told so many times, as obviously you have, that MLM’s are pyramid schemes. I wouldn’t trade my MLM for any corporate structure, not only for the money but for the training. And, by the way, my Presidential leaders have invited me to their house and on a cruise!
Where does that happen in “Corporate America”?
March 7th, 2010 at 6:59 am
I enjoyed the article. MLM is definitely not a pyramid scheme though because I could sponsor someone tomorrow who goes out and builds a bigger organization than I have and he/she will make more money than I will. Corporate America does not give anyone under their pay structure the opportunity to make more than the people at the top. With MLM you can give yourself a raise whenever you want. Network marketing Rocks!
Kathy