#1 thing to know - The term "Pyramid Scheme" has a finite definition. In other words, in order for something to be a pyramid scheme, it has to meet certain criteria. And the #1 thing that ties all pyramid schemes together: they offer no legitimate product or service. Instead, they offer promises they never intend to keep. Unlike the Plexus brand which offers amazing products which actually transform lives, pyramid schemes are solely dependent upon attracting new recruits in order to pay earlier recruits, but there is no real product or service of value. This is why it is called a scheme.
#2 - Pyramid Schemes are 100% illegal; Multi-Level Marketing, on the other hand, is not. Multi-Level Marketing is not simply another name for a pyramid scheme, MLM, as it is known is, in fact, altogether different. Legitimate MLM's offer a real product or service in exchange for money. Simply put, MLM's use word of mouth for their advertising, instead of paying for ad space. The success of an MLM is largely dependent the quality of the product or service that is offered. MLM represents a major slice of the American economy, and many very reputable businesses have been built through it. Think of Mary Kay and Avon. Even many well known and respectable insurance companies are structured to be Multi-Level Marketing companies.
#3 - There is no magical formula to getting rich in Plexus. You either share the products because you believe in them, and give other people the opportunity you have been given, or you sit on it. There is nothing illegal or wrong about making money by sharing a valuable product with others. Don't get me wrong, Plexus is an unbelievable opportunity, and you CAN make a lot more money by working hard at it than you can with most any other job, but there is no scheme to it. You simply work hard, like everything else, but YOU set the limits for what you can achieve.
#4 - Some MLM's have given the industry a bad name. Some MLM's have tried to establish themselves through a lot of hype, but when it really comes down to it, the product or service that is offered is lackluster. There is nothing illegal about this, and this does not make them a pyramid scheme, because again, they are offering an actual product that has some value. What it does mean is that their product is bad, and as all bad products, they deserve to land in the dump heap of history. Unfortunately, some MLM's also market themselves as ways to get rich quick. While the MLM structure can lend itself toward making a good living, it is still dependent on working hard and offering a good product.
Plexus offers excellence. There is no magic here, and there is no scheme. We just offer something that people are desperate for, we work hard, and our product delivers results.
Except Multi-Level Marketing companies like this have been declared pyramid schemes. Try looking something up. lawl.
ReplyDeleteJohn, when you say "Multi_level companies like this have been declared pyramid schemes", it sounds as though you are referring to all Multi Level companies. That is exactly the type of thought I am attempting to deal with in the above post. I could post the legal definition of a Pyramid Scheme, which I have read and understood, but I don't know that it would help you to understand my point. Rather, I would suggest you look up Mary Kay and Avon, two long standing, legal companies that also happen to be Multi-Level Marketing companies. There are some Multi-Level businesses that have made Multi-Level marketing look bad. Those companies are ones who took advantage of the structure and lied and manipulated people. But John, the EXACT same thing happens in traditional businesses. In fact, there is absolutely nothing illegal about a pyramid structure at all, because ALL businesses, and governments are pyramid structures. Think about it, unless you are a sole-proprietor, someone at your company is the boss- the CEO, Owner, President, or Big Cheese. Then below him or her you have a few people who make a little less money, but divide up the running of the company- the vice presidents and such. Then, below them you have middle management, and there are a lot more of these people. They make some money, but not as much as the vice presidents. Then finally at the bottom, there are the workers. They each have their individual task, but they don't have to manage anyone but themselves. They make the least amount of money too. If they want to make more money and move up the "corporate ladder", they have to go into management, and have people under them. The government can be divided up this way too. So, the Pyramid is THE structure of all organizations, even non-profits. Multi-Level Marketing is a pyramid structure. The only time that a multi-level can be classified as illegal is if it operates as a scheme, or in other words, incorporates some illegal activity. But illegal activity is not an exclusive temptation of MLM companies. Think of Bernie Madoff. Think of where the term "embezzlement" is most often applied. MLM is by no stretch of the imagination illegal, or even particularly susceptible to any more temptation toward illegal activity than any traditionally marketed company. I hope this clarifies things.
Deletecomment and question:
ReplyDeleteall companies have top level to bottom as you described in your answer to John.
Of course top level makes more and so on.
I agree with that.
But, it seems like, from what I have heard of Plexus, and Thrive and other fairly new companies, the people at the top also make money off the people below them. Is that true?
A 'team' has the one who started it, who makes money off the team members below them. Correct?
To me that is a pyramid, no matter what it is labeled.
Can you clarify this????
thanks
Barb