Is Network Marketing a Scam or a Pyramid?

Hey everyone!  How’s it going?  Hopefully everyone has recovered from the election and are looking forward to a great future!!  Anyway, is Network Marketing a Scam or a Pyramid?

Well, lets handle the first one.  Is network marketing a scam?  According to direct selling news, Over 18 million people were involved in direct selling in the United States in 2014, with estimated retail sales reaching $34.5 billion, a 5.5% increase from 2013.  The direct sales channel continues to experience steady growth, as more individuals generated more revenue in 2014 than any year previously.  This is a rise from 2009 of 28.3 billion to 34.5 billion in 2014.  Over 18 million people were involved in direct selling in the United States in 2014.  That’s impressive.  Why?  It is the American dream.  Our forefathers came over here not to get a college education and work for the rest of their lives but to create businesses.  (Not knocking a college education but we have been brainwashed that it is the only way and it definitely is not.) See chart above.



e stats:

Sales is the driving force in ANY economy.  And people in sales make far more than most professions.  Why?  Well nothing gets done until a sale gets made.  And one awesome thing is that a single mom, or anyone else, without resources can join a network marketing company for around $250 to $1000 and be in business.  You cannot say that about a franchise which is the other way Americans are creating financial freedom.  You would need for most franchises a hundred thousand or more-over a million for a McDonalds franchise.  Wow.  That’s a lot of hamburgers just to buy a job.  Whereas with network marketing, the investment is a lot less.  See the chart below:

Over 18 million people were involved in direct selling in the U.S. in 2014, with estimated retail sales reaching $34.5 billion, a 5.5% increase from 2013. (PRNewsFoto/Direct Selling Association)

So what are the risks of having a business today?  See the chart below:



Wow, looking at this, is it worth the risk of having a franchise or a brick and mortar business if we cannot get time and lifestyle freedom?  And look at the risk.  Huge.  Network marketing has a very low cost of entry and promises significant income.  People like Ray Higdon ( have been able to recover from foreclosure and being a million dollars in debt to creating a fantastic lifestyle of freedom.  If you want to find more people that have done this I highly recommend reading The Networking Revolution by Jessica Higdon and April O’Leary.  Wow.  Women that have changed their lives, are earning more than they did in corporate America and are doing it from home.  More people that have overcome debt and significant challenges are Mark Hoverson.  He started his business in a public library in $40,000 of credit card debt.  There are many, many others.

Ok next, Is Network Marketing a pyramid scheme?  According to Wikipedia, the definition of a pyramid scheme is: a business model that recruits members via a promise of payments or services for enrolling others into the scheme rather than supplying investments or sale of products or services.  .  Now, looking at this definition, if what you are looking at is a pyramid scheme, then they do not have a product to sell, which is definitely the opposite of most network marketing companies.  Actually, most network marketing companies have superior products offered for sale.  From health and wellness, to makeup and skincare as well as travel products.  So, they do not meet the definition of a pyramid scheme unless they do not have products to sell.  For me, I love customers.  Customers become representatives as they LOVE the products.  Otherwise, they are awesome customers.  Furthermore, pyramid schemes are ILLEGAL and are soon shut down.

Guys, I hope this helps if you are truly looking at something that could change your life and the lives of your loved ones.  Look closer if you are looking for a vehicle to change lives and get the freedom you deserve.  To all those in this profession I definitely applaud you!!  We will see you at the top!!

Deb Alps

720-690-2947 (Cell)

303-658-0376 (Office)

P. S. If you are tired of talking to family, friends, and trying to prospect your grandma-I recommend the Attraction Marketing Formula by Ferny Cebellos


About The Author

Deb Alps

Helping Network Marketers, Entrepreneurs, and Affiliate Marketers Get More Leads, Recruit More Reps, and Become Top Earners in Their Companies

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