Handling The Pyramid Objection

Many people get stumbled when they are asked this
horrible question, “Is this a pyramid scheme” or
“Is this one of those pyramid selling structures?”

When someone asks you this question, you must
not fumble or stutter… in fact, you must be very
happy that they ask this question because it shows
genuine interest on the part of the prospect because
better to have a passionate, negative prospect than
a lukewarm person. A passionate, negative person
can be turned into a passionate positive person
who will go all out for your team, but only if you
handle the pyramid objection intelligently.

Firstly, a pyramid scheme is often confused with
network marketing or multi level marketing. People
feel that the guy who starts FIRST is often the one
who gets all the money while the downlines do all
the work. Others would associate the MLM company
as being illegal.

You see, MLM generally pays over a multi-tier
compensation structure and you can earn money up
to many levels deep. However, it doesn’t mean that
the person on ‘top’ will generally earn more money
than the downline.

Let’s take Amway for example. If you want to
‘Go Diamond’ you will need to build up 6 teams.

But if you want to go Double Diamond, you need
to personally build up 9-12 teams (as an example).
So if you build 6 teams only but your DOWNLINE,
builds 9-12 teams, does it makes sense that your
downline should earn more money than you?

Sure your downline is part of your team and he is
helping to expand your group, but since he put in
more hard work in personally building a team,
it makes sense that the downline Double Diamond
earns DOUBLE of what you should make even though
you are on top!

Next, if you consider that network marketing is a
business about helping people, you can’t try and sponsor
as ‘wide’ as possible (e.g. personally sponsoring 20 yourself)
but you don’t help any of them succeed. You are no longer
building a network but you are creating a recruiting job
for yourself! And if they don’t succeed, you can bet your
next commissions check that you will be sponsoring
people over and over again for the next few years.

Most compensation plans pay you well only when your
downlines succeed so unless you are prepared to
HELP your people.

So in order to handle the objection, consider that
– network marketing is a LEGAL network building
business that MOVES PRODUCTS through many levels
and the one who works the hardest will get paid the
most (contrary to a corporate pyramid where the CEO
might not necessarily work the hardest compared
to the clerk, but the CEO gets paid the most nevertheless).

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