Are Top Tier Direct Sales Companies Pyramid Schemes?
When first exposed to a top tier direct sales some people are confused. The profits are fantastic and to some, seem ‘too good to be true’. The compensation plan is often difficult to understand at first. They are often suspicious, driven by stories about scams and pyramid schemes leaving those at the top very well off, and those at the bottom losing their money.
So, here is the research:
Firstly what is a pyramid scheme?
Definition 1: From Wikipedia, the free encyclopedia…..A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered.
Definition 2: from Wiktionary the free dictionary…..A pyramid scheme Is an illicit money-making investment scheme whereby early investors are paid primarily or wholly by later investors. Eventually all such schemes fail to the detriment of recent (later) investors.
There are several reasons that top tier direct sales companies are not pyramid schemes.
1. Top Tier Direct Sales businesses have products that are sold for profit.
2. Pyramid schemes are illegal. Direct sales companies are legally registered to operate in many countries.
3. Top Tier Direct Sales Companies generally have stand alone products of high quality that are in demand separate to the business opportunity.
4. The products come with a flexible business opportunity if the purchaser wishes to pursue it, but it is not compulsory. Many people buy the products and have no interest in building a business or pursuing the opportunity.
5. If someone were to take up the business opportunity, they themselves can market (on-line or off-line) to sell these products. They may choose to sell these products for profit always, WITHOUT EVER gathering a team of people underneath them or encouraging others to do the same. No pyramid scheme there!
6. It is not necessary to gather a team of people or to form down-lines to make a profit from the product sales in this business.
7. The products will usually come with some kind of money back guarantee – there is NO RISK to consumers.
8. There is no difference or advantage to an individual’s business opportunity if they commenced 12 months ago, or they have commenced recently. Your position is irrelevant because this is not a pyramid scheme. There is equal opportunity for all.
There are many companies who market their products on-line and ‘franchise’ the opportunity to do so. Just because this business is ‘new age’ does not mean that it is illegal, misleading, pyramid or a scam. Even traditional corporations have the structure of a pyramid with a CEO at the top, senior management below, then middle management and lastly the workers. Would you, therefore brand these businesses as ‘pyramids’ as well? Or what about rapidly expanding franchises e.g. boost juice, could these be branded as pyramids?
It is very easy for people to jump to false conclusions about these businesses, due to lack of knowledge or proper research.
Top Tier Direct Sales Companies have low start up fees, training, on-going support, branding, established business systems and often product handling services. There is very little financial risk and they are a better opportunity than purchasing a franchise because many franchise start-ups are $50,000+ and have costs associated with leases and staff etc.
"Direct selling gives people the opportunity, with very low risk and very low financial commitment, to build their own income-generating asset and acquire great wealth." - Robert Kiyosaki, Rich Dad, Poor Dad
Top Tier Direct Sales companies are an amazing opportunity for those who may not have another opportunity in the current economic climate, or for those who simply choose to work from home so that they can spend time with their families. The financial rewards are fantastic and the possibility of making a substantial six figure income in the first year of operation is realistic.
My #1 High Ticket recommendation is with a company that provides valuable cutting edge digital products with a unique business model. This high ticket industry leader and innovator is the first franchise-style system in the home business industry.
If you would like more information about this life changing Home Business call 24/7: 302-231-2013 or contact me directly.
To Your Success,
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