Is Multi-Level Marketing A Pyramid Scheme? The Truth Behind Multi-Level Marketing​

My name is Dustin Hale. I am a professional Network Marketer. What does that mean? Well, simply put, it means that I am involved in Multi-Level Marketing companies and use Network Marketing to grow my business. With that being said, I feel as if I have the knowledge and experience to be able to answer the question that a ton of individuals have been asking me.

What Is A Pyramid Scheme?

First, we must understand what a pyramid scheme is. A basic explanation is a form of investment in which one individual recruits two other individuals into their business and makes money from that recruitment. Then, those two other individuals both recruit another two people each into the business, so a total of 4. Those two people make money from the four they just recruited. Then, those 4 people recruit two individuals each, now a total of 8. The individuals in the company continue this process over and over again until they run out of recruits. If you write this on paper, you will clearly see the pyramid being created.

After all the recruitment’s take place, it become clear that the top members in the company make the most money while the bottom recruits make very little if any at all. Can you guess what happens next? The pyramid collapses! Some members make money, but most participants lose all the money they invested. Pyramid schemes are obviously awful; luckily they are illegal in the US.

What Is Multi-Level Marketing?

Secondly, let’s understand what Multi-Level Marketing is. Multi-Level Marketing or MLM is a marketing strategy in which participants enroll members into their business into their “down-line”, if you were to write this on paper is absolutely looks like a pyramid. Billboards, radio ads, TV ads, flyers, and many others are all forms of marketing. However, MLM generally works very well and has the statistics to prove it. Simply, it is word-of-mouth marketing. Real people, real experiences, and real-life marketing is the keys that makes it work so well.

To Conclude, No, Multi-Level Marketing Is Not A Pyramid Scheme!

How Is Multi-Level Marketing Not A Pyramid Scheme?

It appears the definitions and explanations of both multi-level marketing and a pyramid scheme seem quite alike. So, what makes it not the same? Well, a pyramid scheme relies 100% on enrollments to make money. Although MLM includes enrollments it doesn’t rely on them entirely. Companies in which use this strategy allow participants to enroll members to make money, however, the company also offers products. If the products don’t exist and it’s all about enrolling participants, it’s likely a pyramid scheme, which once again, is illegal!

Companies that use the strategy give you the ability to enroll other members but you’re goal, too, is to sell the products the company has to offer. You can both sell the products and enroll new members with Network Marketing. Therefore, there is no such thing as a collapse. It would be the same as, for example, owning a car dealership business. You can hire employees and sell your cars. Your employees will help sell your cars and when they do they will earn a certain commission payout from that sale. Additionally, they have the ability to refer people into the business in which will be able to do the same things as well such as sell cars and refer people into the business. The dealership constantly expands and never collapses.

Let’s Wrap This Up

This is a very brief and basic understanding of both a pyramid scheme and a Multi-Level Marketing strategy. However, hopefully you were able to understand what both are and the differences of each. But the answer is simple; Multi-Level Marketing is not a pyramid scheme. Pyramid schemes are illegal and companies have been using Multi-Level Marketing for years upon years.

Some well-known companies use this strategy to develop rapid expansion and growth while allowing their participants to also create a higher income for themselves. One particular company that is highly respected and well-known is Mary Kay Cosmetics; a vast majority of the world has heard about this company and maybe has been involved with the company itself or even used their products. However, most people don’t know that they are involved in Multi-Level Marketing and that’s one of the most important reasons they are so well-known.

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3 Ways To Generate Leads: How To Generate Leads Like A Pro

In order to grow a business you will need tools and resources. You will also need to understand how to prospect, close, and present. You will need to master the art of writing good copy. Most importantly, you will need to learn how to generate leads and build a lead generation system that works for you!

Wouldn’t it be nice to generate leads that are already interested in what you have to offer and call you for more information? Wouldn’t it be nice to get rid of the frustration of making a list of 100 friends and family and practically begging them to join your business? Wouldn’t it be nice to create a targeted market rather than relying on your warm market to grow your business? Wouldn’t it be nice to wake up to a list of 50 people asking you for the answers when it comes to making a bunch of residual income all from home? Over this review, I will explain how to do exactly that!

There are 3 ways in which you can generate leads, 3 systems you can create to get 700 leads or more per year. Let’s get the ball rolling and figure them out!

3 Lead Generation Systems

1. Pay-Leads – I use all 3 ways that I am going to discuss to generate leads. However, I didn’t begin using this method until my business was already flourishing! Why? Because this method requires you to spend money! You can purchase these leads from an unlimited supply of different websites. You basically go on one of these websites and send them some money, they will in turn, send you a list of leads! Generally speaking, the more you spend for leads, the higher the success rate. However, keep in mind, that’s not always true.

At the end of the day a lead is a lead is a lead! You should never have to pay more than $1 per lead! You should never want to pay $0.01 for a lead! A good area to start if you are a beginner in this industry is to find leads for around 25 to 45 cents per lead! Most of these leads have already been prospected and it turned out that they weren’t interested. However, that’s not something you should let discourage you. They could have not been interested in the product offered, they could’ve not been interested in the opportunity offered, or the prospector didn’t master the art of prospecting before calling and made a significant mistake to turn that lead off.

There’s a ton of information I will be leaving out in terms of Pay-Leads, but this is a very brief explanation of them and how they work. They are a great way to build a business rapidly, however, if a marketer on a tight budget is trying to grow their business it probably isn’t the best idea, yet!

2. Content Marketing – This is my favorite lead generation system. What is content marketing? Well, it’s exactly what I am doing right now! Content marketing can be writing an article, creating a vlog on youtube, creating a blog in general, making audio recordings of information, and many other things. It’s the easiest way to generate leads and it’s absolutely free! However, it does take time and work! You don’t need to work 8 hours a day to generate leads, you can work 1 hour a week if you’d like and you will still build a fantastic lead generation system. However, the faster you work and the more work you complete, the faster you’ll generate leads and the more leads you’ll generate. It’s a very simple concept.

You basically, give away free, accurate, and great information. People read your information and want to work with you. Then, they become a targeted lead! The biggest problem marketers have with this system is it does require work! You can’t just give out free content that isn’t useful! You have to learn! You have to work! You have to be accurate, informative, and knowledgeable.

If you create an article about lead generation and have no idea what you’re talking about, you’re going to hurt yourself more than you’re generating leads! For example, other marketers (even more successful than me) have a tendency of stealing my work! They will literally copy and paste my article onto their webpage and generate leads for themselves. They include I am, in fact, the author, so it’s not plagiarism. However, people that would like to work with me, click on the robbers’ links thinking it’s leading them to work with me and turns out I’m not included at all. They end up working with some guy or girl that has no idea what they’re doing. It happens daily so don’t be surprised if it happens to you as well! Some people just don’t want to actually work!

3. Social Media Marketing – This is kind of the same of content marketing, but it’s not! Social media marketing means you will be using platforms such as Tumblr, Twitter, Facebook, or many others to give out free information relating towards your specific company! If you are affiliated with Mary Kay Cosmetics, you will generate leads that are interested in getting more information about Mary Kay and Mary Kay only! You will not be able to generate many leads this way! If people want more information on a specific company, they will generally just go to their official website! However, you still can be successful in generating leads this way! I do not recommend you trying to build your entire business from this one way of generating leads.

The Best Lead Generation System

Well, the answer is none! You will not be able to generate 700 leads per year or more by just using one of these systems! If you are serious about your business and would like to see massive growth, you should be using all three! There’s still a ton of information when it comes to lead generation and these 3 systems that I have left out! I suggest, if you are interested in seeing your business experience the most growth you’ve ever seen, to research these 3 ways in depth or you can find a mentor or a coach to teach you these 3 ways and how to master them perfectly!

Once you get these leads, then what? Well, if you don’t know how to professionally do Network Marketing, the answer is nothing! You get leads, you pat yourself on the back and then you go back to your daily routine. However, if you know what you’re doing then you get these leads, you present your offer to them, you prospect, you close, you train, and then you succeed and make money! Although this article may seem to be a little long, it’s not. It’s the very tip of the iceberg when it comes to the information you need to know about Lead Generation.

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