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ItWorks!, Rodan + Fields, Jamberry Nails, Younique, Mary Kay, doTerra, LuLaRoe, we all know the deal. Whoever is selling these products from these atrocious pyramid schemes should be avoided like the plague! They’re so annoying right?
We’ve all seen the memes circulating the internet, you know, the ones that look like this:
They’re funny, right? The main demographic of these pyramid schemes are small town white women. They’re typically unemployed housewives, or stay at home moms. Very few people make it to the top of these schemes. All these ‘consultants’ ever do is annoy friends and family on Facebook by trying to make a quick buck off them.
What these Pyramid Schemes really are
These actually aren’t pyramid schemes. Those are illegal in the US, and what you’re actually seeing is Multi Level Marketing (MLM) and Network Marketing.
Network Marketing
Here’s the deal about Network Marketing, ItWorks! (c’mon, you know I can’t pass up a good pun). There is a secret to success, and that secret is networking and reaching out to other successful people. Read this post if you want to know my take on how the top 1% made it.
Multi Level Marketing
MLM is only beneficial with certain types of products. That ‘type’ being products that have a continuous demand, and are fun / uplifting to use. Think: candles, weight loss products, beauty and skincare, and more. Which means that the products these people are trying to sell are products that most of us already need, and frequently buy anyways.
Just Because it Looks so, Doesn’t Make it so
But those companies, they look like a pyramid! The consultants sell something, and everyone above them makes money! True, but do you know which other companies use that similar pyramid scheme business model? Almost all of them.
You have your CEO who makes the most money, who hires a president and a vice president, who make a slightly smaller amount of money. Those two people in turn, hire a team of managers who make less money than they. Those managers then hire the employees, who, like MLM businesses, do the most work, and make the least money.
Why I love MLM companies
- Start up costs are minimal. The only cost most of these businesses have, is requiring the new consultant to buy some of the products first. Which makes sense right? You wouldn’t work at an Apple store on commission if you didn’t personally know and appreciate Apple products would you?
- You don’t have to reinvent the wheel to have your own business. There’s already a demand for these products. We already know that women want makeup. Why would you try to make a brand new product, when an already great one exists? Especially when that great product hasn’t been introduced to your area yet?
- These business models are ideal for people who want a side hustle. These huge MLM style companies have the end goal of selling a product. There are two methods of doing so:
- Method A. This requires pouring money into a research and marketing team to determine an audience, style, packaging, and marketing strategy. They then pay celebrities and other influencers to endorse said products, to gain consumer trust. Finally, they pay for nationwide advertising using various sources of media.
- Method B is much simpler and more straightforward. The business simply allows people from all over the country to try their products at a reduced price. If they like it, then they can sign up to sell the products on their own, for a fair commission. The company spends about the same amount of money, but now, that money is helping a multitude of people.
Why you should purchase products from MLM Consultants
Remember those memes I shared at the beginning of this post? Both of those came across my Facebook feed after being shared by local hairdressers who were mocking MLM consultants. I find that ironic really.
Both of those hairdressers buy makeup regularly. One of them burns candles in her shop daily. Both of them love a good pair of leggings. Both of those hairdressers regularly have open slots in their schedules. One of those women has a family to support. And I’m sure, that both of these women wouldn’t mind more regular business.
Instead of bashing our local MLM consultants, why not support them? Our money will benefit people locally, and we can do some other networking on the side. Let’s utilize one another’s products and services. Buy some leggings from Lauren, and she’ll get her hair styled by you.
Perhaps these Pyramid schemes aren’t so horrible after all. Let’s use them to bring our small towns together once again.
What are your thoughts on the so called pyramid schemes? Do you have a product or business you love? Has social networking been beneficial to you and your business? Comment below! If you loved this article, be sure to share it with your friends using the social icons below.
As always, thank you for reading!
