Last night we talked about direct selling versus regular type 9-5 jobs. We are continuing that conversation tonight and exploring a little more about what a pyramid scheme is and what direct selling is not.A pyramid scheme is a non-sustainable business model that involves the exchange of money (by enrolling others into the scheme) without any product or service being delivered. Pyramid schemes are a form of fraud. Many people also believe that direct sales models (sometimes called multi-level marketing) are nothing more than a pyramid scheme repackaged.
In a pyramid scheme, there is some type of business that claims to be simple to understand, yet have this awesome method of making tons of money without a lot of work needed to be performed. Essentially one person makes one payment and recruits others to make one payment each. The first person gets paid out of some of the money from his two recruits. Those recruits are then pushed to get two recruits, and the process continues. Each time a recruit pays into the system, the people above them get a piece of the action. The problem with this type of scheme is that the people at the bottom do not make a dime, while the guy at the top becomes rich.
OK, that sounds pretty bad, right? Well... if you think about it... what is the difference between the above described pyramid scheme and working for a regular company? Doesn't the guy at the top make a whole lot more money than the guys at the bottom of the work force? Don't the mail clerks make pennies for the work they do compared to the top level management of the same company? Essentially, everything we do is a type of pyramid. There is always someone on top making more money than you. The difference between a regular job and a pyramid scheme is that the people at the bottom in a regular job do make some money.
So again, it all boils back down to attitude. If you want to work for a direct sales company selling a product or service, if it is a reputable company (look at Avon, Mary Kay, etc...those are reputable Direct Selling companies), you should be relatively successful if you actually put the work into it (just like a regular job). Just like in a regular business though, sometimes you do well, sometimes you won't. Nothing in life is guaranteed, not even a regular job working for a brick-and-mortar company. The upshot of this two part post is to not necessarily promote any one direct sales company over another, but to at least suggest that if you look with an open mind, regular jobs can be pyramid schemes too. I am sure you know a person or two that couldn't succeed at any company they worked at. Perhaps their failure to succeed at that company was more because of their attitude towards that company rather than the company taking advantage of them.
All I am requesting is that you keep an open mind regarding direct selling (also known as Multi-level marketing [MLM] companies). Some are really not good companies, and they will take advantage of their distributors. Same holds true for regular brick-and-mortar companies. But if you do your homework and research before you get involved in any company, you may find one that can help you to get closer to your dreams. Just like anything else in life, you need to research, ask questions and research more before you put any money into any business opportunity. Do not summarily dismiss direct sales models just because someone related to you their bad experiences. Don't believe all that you hear (from others or from companies trying to get your business), do your homework. Again, not all people are cut out to do well in direct sales at all. That is not a reflection of the particular company, or of the person. The particular opportunity may not be a good fit for that person. Just like a commission sales job would not work for an introvert.
Hopefully this two part series was helpful and provided food for thought. If you are interested in seeing what we have for business opportunities, please feel free to check out http://www.hawgwash.net/, or feel free to contact us via e-mail at hawgwash1@yahoo.com.
As you can see from our website, even though we offer some direct selling opportunities, that is not our only focus. We want to help people help themselves. We offer products directly for sale (retail sales) that may improve health, or help save the earth's most precious resource - water, or we also offer products for sale that will just make you smile. It is up to you what you want out of our website.
Until tomorrow...
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