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HOME BASED BUSINESS FORUMS - home based business > Discussion Forums > General Home Based Business Discussions > How To Overcome The Objection--“Is that one of those pyramid schemes?”


How To Overcome The Objection--“Is that one of those pyramid schemes?”
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Ronda
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 Posted: Tue Dec 4th, 2007 07:50 pm

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I completely agree with mlmblonde that friends and family are the worst people to talk to.  Not only do most of them have no comprehension of network marketing, but they also could care less about it.  Nor do they want you to approach them with your latest and greatest business or products.  I have much better luck with complete strangers responding to ads, etc.



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Andrewm
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 Posted: Wed Dec 5th, 2007 05:09 am

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One of the biggest problems in the network marketing industry is that 90-97% of people that start their own business  have zero business and marketing experience. Kind of ironic when we refer to it as "network marketing". Long gone are the days of old school marketing where you make a list of friends and family. There is no need to do this when there are about 300 million people in the US. When you first get started in your new business venture I can almost guarantee you that your upline never mentioned that fact that you will need to actually "market" your business. This means that you must spend some money on advertising (budget permitting). BTW- The whole pyramid thing is never an issue and it never comes up for me personally.



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otto101
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 Posted: Fri Dec 7th, 2007 07:28 am

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A Pyramid scheme?Aren't they illegal?We don't nothing illegal here.That's what  I would of said.

Get a your own business card and pass them out to people who would be interested in making money from home or whatever.I get some refferals from my friends or family about presenting the product or service.Then I would share the biz opp if they ask me what I do then show them company site etc,

From my experience,friends most likely not to join in the begining join because you are not making money or that think you have to sale stuff to people.All you doing is talking to people about your company or product.That's it.The rest follows.I work in direct sales and people always looking for ways to make money.I offer the opportunity to work with me and show them what resources they can use to make it easy.

I believe if you show people you are motivated they will see it in your face that you are making money or feel that you are excited about what are doing naturally.

I like to talk to future clients on the street because they have more respect for you,when you give them your business card with your site and get Their contact phone number...it's ON I get refferals from the same clients I talk to.It works with anything you promote.

It's not  pyramid selling it's networking!



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Tim_Welch
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 Posted: Fri Dec 7th, 2007 01:35 pm

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My advice is for you to not worry about what your friends think. There are a lot of times when your friends can bring you down, you just have to decide what is more important to you. Your friends who want you to stay as broke as they are, or your dreams to become wealthy helping people to become financially independent.

You can lead a horse to water but you can't make him drink.

Just tell him pyramids are in Egypt, and while he's whining about pyramids you'll be kickin' it the Carribean with your MLM.;)



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delta
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 Posted: Tue Feb 26th, 2008 02:49 am

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Right, Tim. That's the idea! That's the way it has been for me. I don't say anything to anyone I know about being involved with any business...then all of a sudden they are like "what are you doing that you always seem to be able to go anywhere at anytime? You don't seem to work but you have money...what's that about?" I love it!
You definitely have the right mindset...and I like that "pyramids are in Egypt" LOL!!!!!



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shop4dreams
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 Posted: Sat May 3rd, 2008 10:39 pm

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Everything Is Network Marketing

You know the reaction you get from some people when you tell them you’re involved in Network Marketing? They cringe and ask, “Is that one of those pyramid schemes?” They act as if you’re Dr. Evil in an Austin Powers movie and quickly excuse themselves from the room. The funny thing is, every business is a network and if it’s a successful business, it’s involved in marketing.

In fact, networks and marketing permeates every aspect of our lives. For example, this computer that you’re using right now is only possible because of a network that some company has built. So is the electricity running through it and the rest of your home. The car you drive was built by a company that brought together networks to produce it. The steel, rubber, interior and even the gas in the tank is only available because of these networks.

It doesn’t stop there. The food we eat and the water in our homes are also a part of a network. The roads we drive on and the gas stations and grocery stores we shop in and the televisions and movies we watch and rent, the cable and satellite subscriptions we subscribe to are also vast networks that were built.

Everything that we own and did not make ourselves are all part of a network and the fact that we are aware that these things even exist is all because of marketing.

Wal-Mart, Costco, Home Depot, McDonalds, TGI Fridays, Sears, BlockBuster Video, Denny’s, Sam’s Club, Nike, Levi’s, Budweiser, Yahoo, Google, Coke, Pepsi, Starbucks, The New York Stock Exchange, all Newspapers and Magazines, Expedia, Century 21, Bank of America, Radio Stations, CNN, ABC, CBS and we could go on forever. They’re all networks that were built to provide people with the number one commodity in the world; Convenience.

So why, when we mention that we’re involved in Network Marketing, do people cringe?

The simple answer is, they don’t understand that everything is a network. Life has become so convenient that we have forgotten that someone actually built a network to make our life easier. The truth is that we work forty hours or more a week so we can support someone else’s network all in the name of convenience.

The job that most people work in is part of a network. Truckers, builders, retail clerks, bank tellers, insurance salesman, police, firemen, politicians, writers, manufacturers, real estate agents, etc. etc., all work for networks. Once they get a paycheck, most of their expenses are spent supporting others networks.

All of the biggest and most successful businesses have built, own or control their own networks and what stops most people from building their own networks is laziness, fear and moving out of their convenient comfort zones.

The one thing all successful networks have in common is someone built it to begin with. Some of the largest, global companies all started on a kitchen table with just an idea and some motivated people. People with a vision. People willing to build a business because they had a strong vision and reason why.

So, when people look at you like you’re crazy for even thinking about building your own network marketing business, they’re right! And I promise you that every one of the CEO’s that started the companies mentioned above were called crazy too. Donald Trump was told that his first big project would never work and he would never get the financing for it. Robert Kiyosaki, author of Rich Dad Poor Dad, couldn’t get a single publisher to publish his book and is a best-selling author who flunked high school English. Sam Walton who started Wal-Mart, was a high school drop out and everyone told him he was crazy to think people would shop in a warehouse! Bill Gates was told that nobody would ever want a personal computer and businesses were the only market! In fact, every crazy idea has been mostly responsible for the advancement of society and life as we know it.

There is not a day in most peoples’ lives that they can get through the day without being part of a network in some way. The minute they wake up and brush their teeth they supported a network (Colgate). When they turned on a light bulb they supported the electric company. When they get dressed they supported the fabric industries. When they eat breakfast they supported agriculture and grocery networks. When they drive their car they supported car manufacturing and petroleum networks. When they listen to the radio they support radio networks and when they get to work, nine times out of ten, they are working for a network.

So many people supporting so many networks is good for businesses and the economy.

For all those people who say, “ Is that some kind of pyramid scheme?”, when you tell them you’re in network marketing, I offer this suggestion. Explain to them what you learned in this article and it will open their eyes in a new way. Some will understand that unless they build a network of their own, they will always be working and supporting someone else’s. Some will never get it, and they make good customers. Either way, you can’t lose.

If you have used other ways of overcoming this objection:

“Is that one of those pyramid schemes?”

Please reply to this post and tell us what you do that works for you.

Traveling this journey with you…

Frank Tocco



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 Posted: Sun May 4th, 2008 12:10 pm

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I couldn't have put it better myself Tim.

There's no better feeling than not needing a job because your business is doing so well. The only thing I can think of that's better than that is helping others do the same.

Frank Tocco



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 Posted: Sun May 4th, 2008 12:18 pm

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Tim, one of the greatest things about MLM is that you can live anywhere you want. With computers and the right system, it makes no difference where you do business.

Pyramids are in Egypt and networking is everywhere.

Frank Tocco



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MLM Mentor
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 Posted: Sun May 4th, 2008 03:36 pm

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nstaley wrote: So I get a call from my friend, We haven't spoken in a little while, we're chatting about this and that, as you do. It WAS good, then I say I've started doing this new thing, it's going really well, In just 4 wks I've got 168 signups. I'm really excited about it!

What's that then?

Did I not send you the link?



This is just my opinion (based on MY OWN core personality and my experience)...

The problem might have been the fact that you didn't value the relationship first (above the "opportunity").

In other words, you hadn't been in contact for a while but instead of just calling to get re-acquainted, you sent him a "link".  You were probably just following the suggestion given to you by your upline (or company training) to contact all your friends, family and co-workers to let them know of your spectacular opportunity so that you could help them be successful too!

When he actually called you to get re-acquainted, you bring up the link and he automatically feels you're trying to sell him on "your new thing".

I also learned this lesson (and the lesson was excruciating for me).  But my lessons have evolved into an approach to my business that honors my core personality and my core values.  It's about honoring relationships and building new ones.  It's about knowing myself and listening to my strengths and weaknesses.

It's about having interested people contact me, rather than assuming "everyone" should be interested...because they aren't!  I'm a great example.  If I don't know you first, you'll get nowhere with me!

Don't listen to those trainers that say everyone is a prospect.  The key to success in NWM is honoring relationships first.

 



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Ronda
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 Posted: Tue May 6th, 2008 04:25 pm

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Hi Theresa-

You are so right that not everyone is a prospect.  Most of my friends have absolutely NO interest in joining my company, or any other company.  They are perfectly happy going to work each day and collecting their paycheck, and that is what they will continue to do.  I would be wasting my time, and making them angry, if I did not take "no" for an answer and move on.  We should be dealing with interested prospects and leave the others alone.



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PMHayes
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 Posted: Sun May 25th, 2008 09:54 am

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Ok Y'all, I don't know about you, but i truly am fed up with this business of misinformed people, self righteous pundits calling my business and many others as well, a scam! Someone needs to take a stand for the truth. So here goes. Let's first examine the definition of the word scam:

1. Scam (noun) dishonest scheme: a scheme for making money by dishonest means


2. Scam (verb) trick somebody: to obtain money or other goods from somebody by dishonest means

This post is for those of you who are seeking answers, seeking a good business opportunity, and you have come here to learn about our industry, MLM, and examine different opportunities. You have heard the "S" word and it has you scared. Or perhaps you are new to MLM and you are getting bludgeoned by all the whiners, nay sayers, self professed experts, etc. and you are not sure how to answer the accusations.

So here's the deal, seems to me the operative word here is dishonesty! In other words, lying, making fraudulent promises or claims to get people to trust and open their wallets, the intent of which is to take their money and deliver nothing but thin air! In earlier days we would call this a con artist. Now Dishonesty, that's a strong word, it implies intent, planned action, with but one goal, one's own gain at another's expense.

Yes, there are scams out there, people, companies, systems intent on making a lot of money by dishonest means, fraudulent practices, etc. One comes to mind, one we have all more than likely experienced. You get this email claiming you have won some lottery somewhere or someone has died and left you a bunch of money and if you will supply your details they will rush your money to you. You are to receive a check, a rather large sum, deposit it, and then write out a small check to the organization who declared you a beneficiary or lottery winner, to cover some of their expenses, or some other reason. A few days later your account is frozen, you are in a negative balance, and have to repay the bank. This theme plays out over and over, different stories, different reasons for which you are suddenly very wealthy, and people fall for it every day. Now pay attention class, THAT IS A SCAM!!!! Remember, "dishonest means?"

It's not a scam is when a particular MLM's compensation plan isn't as good in actuality as it is on paper. it's not a scam is when people fail at a given business because they didn't do their part by following the training of their sponsor, or because they are lazy and want to make the money without putting forth the effort. It's not even a scam when people don't understand the claims of a given business opportunity or compensation plan and when things don't pan out the way they thought they should they don't make as much money as they wanted to make. It's not a scam when an MLM requires some up front money, membership fees, product purchase, whatever. Those are not attempts to make money from people by dishonest or fraudulent means. You may not agree with a given companies policies, but that does not make them a scam. Don't join, fine, but don't accuse them of being a scam.

I am in The Berry Tree. Great company, great compensation plan, great products. Is it perfect? NO. Is it for everyone? Certainly not. Our business is under fire, lately from self professed gurus out there who don't have their facts straight, claiming we are misleading prospects into thinking they can get in, make money, with no effort of their own, due to "spillover" from upline sponsorship efforts. That is, for lack of a more sophisticated word, "hogwash!" We make no such claims. They have their facts mixed up, and are confusing two completely different concepts. Yes, you do get "spillover" and it can improve your group volume, and help you reach bonus pools. No, there is no free lunch, you still have to build a business, you still have to work for it. If you have heard claims of scam, or fraud, regarding The Berry Tree, bring them to me, ask me, i will answer the accusations with the truth. Yes, that's what i said, truth. Not dishonesty.

If you have heard those same or other accusations regarding another MLM or business represented in this or other forums, or even about MLM in general (you know MLM is just a pyramid scheme, after all or so they say) do yourself a favor. Go to the source. Ask a person in that company, or call the company yourself. But don't just believe what the "nay sayers" and detractors, are saying, no matter how informed they claim to be, without doing some research on your own! Bring those claims to me or some of the other honest and hard working people in this forum and let us examine them and expose them for what they are, a load of  you know what!

Respectfully submitted,

Mitch


 



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Justlive
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 Posted: Wed Jun 4th, 2008 07:34 pm

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This was taking from a good friend and mentor blog. I really like this, he said it was ok for me to share this with you.

   The human mind tends to reject what it doesn't understand. The implications of this statement are enormous. Once you understand this truth it helps explain everything from religious wars to racial tension; from political mudslinging to sports rivalries. Read it again. The human mind rejects what it doesn't understand. The main reason that people reject network marketing as a legitimate business model is that they don't understand it.
The most common objection I hear is that network marketing is a "pyramid scheme." When I ask what they mean by "pyramid scheme," they usually respond, "You know, where the guys at the top make all the money and the ones at the bottom do all the work."
Let's look at a few pyramids. First, let's look at the corporate pyramid. I'll use Wal-Mart for my example because they are the largest employer in the US, but you could just as easily insert the name of any major corporation. At the bottom of the Wal-Mart pyramid you have hundreds of thousands of sales clerks, greeters, stock clerks, etc. Moving up one level you have tens of thousands of department managers. Above them you have thousands of store managers, and above them, hundreds of district or regional managers. Near the top you have a handful of vice presidents, and at the very peak, the CEO.
Do you see the picture of a pyramid? Hundreds of thousands at the bottom, working for minimum wage, with smaller numbers as you move toward the big money.
Now, let's look at the government pyramid. I'll use the post office for my example, since it is most visible to the majority of us. At the bottom of the postal pyramid are hundreds of thousands of letter carriers, clerks, mail handlers, etc. Moving up one level you have tens of thousands of craft supervisors. Above them you have thousands of postmasters, and above them are hundreds of district and regional managers. Near the top you have the 11 member board of governors, and at the very peak, the Postmaster General.
Do you see that our government agencies are structured like corporate America? The same pyramid shape. The lowest paid on the bottom, with a few at the top making the big money. You will find it in every branch of the government, just as you do in every corporate organization.
Finally, there is the network marketing pyramid. At the bottom of this pyramid, in the larger companies, there are hundreds of thousands of consumers and entry level consultants. Most of these sign up because they love the products. Most have no intention of ever pursuing network marketing as a business. Next are the tens of thousands at the second level. Since network marketing companies use so many different names for their consultants, I will just use the term level. These people occasionally will sponsor someone into the business, or host parties. They make a small amount of money each month, but never enough to quit their day job. At the third level are the thousands of people who start to get serious about network marketing as a business. They are telling people about their business every day. They actively recruit new people into the business. They probably still have a conventional job, but they make about as much in network marketing part time as they do in their full time job. Finally, at the top of the network marketing pyramid, are the superstars. Those hundreds who have reached the top pay level in their organization. They are making ten, twenty, fifty thousand dollars per month, or more. They are equivalent to the vice-presidents or CEO's of corporate America.
The term "pyramid" best defines the shape of network marketing companies. It is the same shape that best defines companies in corporate America. It is the same shape that defines our government agencies. They are all pyramids, and there is nothing wrong with that.

So, now that we have that out of the way, let me show you why the network
marketing model is the best. Most of you, as you visualized a pyramid in your mind, probably pictured the Egyptian pyramids. Four sides meeting at a point. For the corporate and government pyramids that would be correct. A single person at the top.
The network marketing pyramid is more like the pyramids in Mexico. Rather than a point, they have a flat top. This is what sets network marketing apart from other business models. There is no limit to the number of people who can get to the top level.
In our Postal pyramid, if you want to be a postmaster, you will have to fight for the position with dozens of others who will apply for the job. And of course, you have to wait for a postmaster to quit, retire, get fired, or die. The post office will not just build new post offices so that you can move up the ladder.
It's the same with our corporate pyramid. If you want to be a Wal-Mart store manager, you have to wait for the current store manager to quit, retire, get fired or die. Wal-Mart may build a new store, but hundreds of department managers will fight you for the position.
In the Network Marketing pyramid, anyone who decides to go the top can get there. You don't have to wait for one of the top money earners in your company to quit, retire, get fired or die. Once you assemble a team of consultants that reaches the required sales volume, you are promoted. There is no limit to the number of people who can reach the top. With network marketing, you are not climbing a ladder where you have to push someone out of the way to move up. You are on a ladder where you help someone move up to the next rung, and by doing so, you move up a rung as well.
If everyone was motivated enough to get to the top level, then this would be a pyramid scheme. You would run out of new prospects in a very small number of levels. But human nature is such that only a handful will catch the vision. Network Marketing is gaining ground. Men such as Robert Kiyosaki and Donald Trump see the wisdom in its design.
So, the question needs to be answered. How did network marketing come to be seen as a pyramid scheme, when it seems that the corporate model and the government model are the true "schemes?" The answer, in my mind, is expectations. When a person gets a job at Wal-Mart, or Wendy's, or the post office, they normally have no aspirations to move up the ladder, even if that opportunity exists.
On the other hand, when a network marketer meets a prospective business builder, we explain the power of residual income. We explain how there is no limit to the amount of money they can make. We know how well we have done and assume that they can (and will) do the same, or better.
When they decide that our opportunity is not for them, they don't look at their lack of motivation, or their unwillingness to do the necessary legwork. They remember all the grandiose potential and assume that because it never materialized, it must have been some kind of scheme.



Thanks,

David
VisionTeam Marketing Group
Leadership Council


So what do you think about this let me others know



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