Pyramid scheme vs. Multilevel Marketing
Yes the two are different. Related but different. If you want to read more, here are a couple articles:
Pyramid schemes require a significant monetary investment and then recruiting people for... Something. Usually just the promise of more money. As in, pay this money and then ask others to pay money with the promise that we all get rich - and then no one but the perpetrator of the scheme gets rich. Illegal.
Multilevel marketing (aka. Direct market, network marketing) like that used by companies such as Tupperware, Jamberry, Amway, Beachbody, Beauty Counter, Rodin and Fields, Mary Kay (the list goes on) is legal because you are not investing money for the sake of investing money, you’re selling a product and you actually earn commission. Sure you hope that you’ll make lots of money but you only make money if you work at it.
What is appealing about this approach is that you can work on your own schedule, hence the number of moms who participate in these companies. But to say that you will get rich quick with little effort is misleading. That’s what I’ve enjoyed about Beachbody. There is zero promise that you’ll earn money with little effort. In fact, there are constant reminders that it takes focus, disciple, dedication and commitment if you want to succeed.
Networking marketing never appealed to me. I didn’t want to sell products. I still sometimes feel like the actual “sales” aspect of Beachbody is the hardest part for me. But I love the products because they are not items. The products are health and nutrition, two things about which I’ve become incredibly passionate. So I’m promoting healthy living and one of the ways to be healthy is to utilize the killer workouts that Beachbody offers, to tap into the online support networks that Beachbody coaches provide and to drink all of your vitamins and get breakfast at the same time.
If you’re not excited about the opportunity to be engaged with a network marketing company, that’s cool. But don’t call it a pyramid scheme. Just say thanks but no thanks and know that hopefully the person who approached you about the opportunity will still be your friend. I know I will be!