Is Network Marketing a Pyramid Scheme?

If you look at this industry, we’re now over a hundred years old, thousands of companies around the world. Some of the biggest names are backing this industry. Matter of fact, let me give you a few statistics. If you look at, for example, the NFL, and these are the numbers from the last year or two years, $12.1 billion industry, the NFL. If you look at the music industry, over a $15 billion industry, look at the gaming industry, $91.5 billion industry. Network marketing over $184 billion last year alone. Again, big numbers in this industry. If you look in the United States, $36.1 billion last year, up 8% worldwide from 2014 and over 103.3 million people are now involved in the network marketing industry. Over 20.2 million just in the United States alone, which is 11% increase from 2015. Again, great numbers about this industry, lot of credibility, but let’s look at what some other people are saying because so many people come to me and they go, well, Darin, my neighbors said this.

Well, if we buy people’s opinion, we buy their lifestyle. Let’s look at some of the other people. For example, if you look in this book, The Four Year Career, number one is Stephen Covey, the author of The Seven Habits Of Highly Effective People. “Network marketing has come of age. It is undeniable that it has become a way to entrepreneurship and independence for millions of people.” Let’s look at Warren Buffet. Okay. Warren buffet is a billionaire investor, owner of three direct selling and network marketing company companies. Warren Buffett’s words, not mine. “The best investment I have ever made.” And this is just a few quotes, there’s quite a few in this book.

If you look at Robert Kiyosaki, he actually has an entire book, one of the best selling business authors of all times called Business Of The 21st Century. If you also look at a book that Donald Trump and Robert Kiyosaki wrote, Why We Want You To Be Rich, there’s an entire chapter in this book called Why We Recommend Network Marketing. One of the best selling business authors of all times the president elect of the United States going we recommend network marketing, not our broke neighbor, not our broke family member, but documentation beats conversation. And then when you look at who the president elect just nominated as the Secretary of Education for the United States, Betsy Devoss. Who is Betsy Devoss? She is married to Dick Devoss, who is Richard Devoss’ son, who is actually one of the co-founders of Amway, which is one of the top hundred wealthiest people in the United States, according to Forbes magazine.

Again, that’s a lot of credibility knowing that we have a lot of people supporting this industry. The number one myth, network marketing is a pyramid scheme, it’s illegal, absolutely not true. Illegal pyramids are illegal. Everything is a pyramidal structure. The government, my church, you have the pastor, the deacons, the congregation, your workforce. You have your boss, the managers, the employees, but illegal pyramids or where the money goes up and the services don’t come down. We’re going to go look, you give me some money and then you go collect money from several other people and then they do the same thing. The person at the top is going to cash out and everyone else gets hurt. A great way to really give it the legitimacy test is do you have a product or a service that people would want without a business opportunity attached?

Is network marketing illegal? Is it a pyramid scheme? Absolutely not. Myth busted. There’s good and bad in every single industry, but the majority of the industry is awesome. It’s great. You can be proud to give you enough documentation to know that you are one of the best industries in the world and it’s only getting better every single day.

Question of the day, what other myths do you hear that you would like for me to bust for you to help you handle objections and building your network marketing business? Please make sure to post those in the comments below.

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