Isn’t MLM a Pyramid Scheme?

“Isn’t this a pyramid scheme?”

In the network marketing industry, also known as the MLM industry, this question comes up frequently.

If you have been in Network Marketing for a while, and you have faced this question for the umpteenth time, this is how you might feel….

 

pyramid scheme

 

However, when you present your network marketing business opportunity to someone, and they ask you, “isn’t this a pyramid scheme”, know this: it is a good question! And it’s a very legitimate question as well.

 

The reason it’s a good question, is because most of the time when network marketing is explained, a diagram is used looking similar to this:

 

network marketing

 

Now, when you compare this diagram with what a true pyramid scheme looks like, you will understand the confusion in your prospect’s mind and you will realise that his or her question, “isn’t this a pyramid scheme”, is quite legitimate. This is what a typical pyramid scheme looks like:

 

typical pyramid scheme

 

Definition of a pyramid scheme:
A pyramid scheme is inter alia defined by Wikipedia, The Pyramid Scheme Federal Bureau of Investigation and Debra A. Valentine in her article on “Pyramid Schemes” for the United States Federal Trade Commission as follows:

“A pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.”

In other words the real profit is earned, not by the sale of the product, but by the sale of new distributorships.

 

The Real Problem is not the pyramid shape

The problem therefore is not the geometrical shape, or the so-called pyramid shape of the structure. As a matter of fact, this is the strongest structure known to man and is replicated all through life – from government organizations, schools and corporations. Look at this:

 

legitimate pyramids

 

If you have been working in a standard business model, where you slave away 8 hours or more a day, just to be underpaid for your services (like in all businesses, as they leverage off of your efforts to make profits for the company), you might appreciate this picture:

 

pyramid scheme

In the above legal pyramid scheme, who is getting paid the most and who is getting paid the least?

Do the employees on the bottom have an opportunity to earn more than the people above them?

The answers to these questions are quite obvious and should hopefully serve as an eye opener if you are trapped in one of these legal pyramids where you have no prospects of improving your financial future.

At least with network marketing, everybody gets the same opportunity to create wealth through leverage, not just those who got in first, like with normal corporations.

 

The true test of a Pyramid Scheme vs Network Marketing is this:

Is there a product or service of real market value?

If not, it’s most likely a pyramid scheme!

Are you getting paid for recruiting new members, or are you getting paid when a product or service of real market value is being sold?

If you are paid for recruiting instead of the sale of marketable products or services, it’s most likely a pyramid.

 

For a very good article comparing Herbalife to pyramid schemes, see Herbalife Pyramid Scheme…..Get Rich Quick Scam.

 

EZHealthBiz Training Tuesday Video:

How to answer the “Isn’t this a pyramid scheme?” question in Network Marketing.

 

Please comment, like, share and subscribe.

Training Tuesday: The Power of Events

The Power of Events – Business Building Tool

Events are one of the most powerful business building tools in network marketing, especially the big events. The purpose of this article and the video I share, is to share with you some of my personal event experiences.

 

 

What can big events do for you?

The power of events is usually underestimated. If you attend a big event hosted by your network marketing company, the biggest impact that it will have on you, is building your belief.

In a previous training we saw how important it is to have a strong personal belief in your network marketing company, it’s products and the business opportunity it offers.

One of the fastest and easiest ways to acquire this belief, is to attend a big event hosted by your company. You can build more personal belief in one weekend at one of these events, than you can in a year not attending any events. The money you spend to attend these events, is an investment with big returns.

The second thing that big events will do for you, is that it will help you to grow your network marketing business. Each time I leave one of these events, I say to myself, “I did not have enough of my people here with me!” You can never take too many people to an event.

Attending a big event is life changing; attending a big event with your team members is magic! If you want to accelerate the growth of your business, take your team members with you to these big events. It’s a no brainer.

 

My first big event – The London Extravaganza 1996

About a month after I started on the products, I got “nagged” to attend a big Herbalife event in London. At the time I was intrigued, as the products seemed to work….at the time, I already lost about 10kg. So I thought, sure, I’m in England, perhaps I should go down to London to check it out. One problem though: I went alone. My wife could not come with me, so it was just me, with no down line team members.

power of events

(In the above photos, you will also see Mark Hughes,  Alan Lorenze and Leon Weisbein.
As you can see, I was still quite over weight at the time.)

My second big event – The Vienna Extravaganza 1996

After this event, my belief level in the Herbalife products shot through the roof. I knew the products worked, but it did not think it possible that people could lose like 30, 40, 50 kg etc. That was just mind blowing. So I left the event with a renewed sense of vigour for the Herbalife products.

So, about 6 months after I started on the products, and already lost 36kg, there was another big event coming up. This time in Vienna Austria. I really did not want to go, especially as it would by a costly experience. My upline told me that if I decided to go, and if I took action, I would be able to make that money back and more in no time. So, after about 5 phone calls from her, I decided to go. This time I went with the purpose of looking at Herbalife as a business opportunity. As a result of my product results, I knew the products to be exceptional. However, I did not know anything about the business opportunity.

power of events

(In the middle you see my upline from Elsa Nimb all the way to Allan Lorenze.)

When they asked for product testimonials at this event, I went forward to share my “amazing” 36kg product result, just to be told that there are too many people with amazing results, and mine wasn’t one of them! I could not belief it. So I sat back and listened and watched..and I saw people who lost 50 and 60kg…not one or two, but testimonial after testimonial…that’s when it dawned on me….these products work for EVERYONE.

I remember thinking, “with products like this, there must be a huge business opportunity!”

 

My third event – Mark Hughes Bonus Payout Event in Los Angeles 1997

This time, I took my wife with me. This was an awe inspiring event. I got to personally meet Chris Carley, and many more of the legends in Herbalife. When we came back from this event, even though it was only my wife and I (with no downline) who attended, it inspired us to take as many people as we could to the next event, which was the South African Extravaganza at Sun City. Leading up to that event, we qualified to the Global Expansion Team.

power of events

A big highlight of this event was meeting Chris Carley (middle) and Doran Andre (bottom right.)

If you want to build your Herbalife business fast, I would recommend that you make use of Big Events. Commit right now to attend the next one, and decide how many of your own team members you are taking with you. If you have no team members yet, no problem. You are now going to recruit them with a purpose. Your purpose will be to get them to the next event.

As a matter of fact, the 90 day game plan training series by Eric Worre will assist you a lot. Here’s a link to it: 90 Day Game Plans

 

“Get people on the products, then get them to a big event.” ~ Alan Lorenze

 

I hope that this blogpost was inspirational and showed you a bit of the magic that you will experience when you start using the power of big events to promote and build your Herbalife business.

 

EZHealthBiz Training: Keeping it Simple

Keeping It Simple

keep it simple and smileEZHealthBiz Network Marketing Training

You know the KISS principle, right? Keep it simple and smile. But why do so many people struggle to keep their mlm business simple?

Is it because they lack certain core skills about their company, it’s products or marketing plan? Probably not.

In this  “Training Tuesday – Keeping it Simple (Part 1)” video, we will look at the real reason why some people struggle in their network marketing business…..trust! Let me explain…

 

 

ooOoo

MLM – It’s a Simple Business

In this, the Part 2 video of Training Tuesday – Keeping it Simple, we are going to look at how simple network marketing really is. Most people tend to over complicate their network marketing business. As a result they get frustrated, and some even quit. If you fall in this category, let me ask you this: how attractive is your business to other people? Not very, right? Well, you can change that!

If your network marketing business is not simple, fun, and magical, you are probably overcomplicating it. If so, you need to watch this video!

The key to a happy, healthy, and prosperous network marketing business, is keeping it simple, fun, and magical.

 

 

keeping it simple in mlm

MLM Road Trip!

As you saw in this part 2 video on Keeping it Simple, your network marketing journey is like a car trip you take from YOUR point A to YOUR point B.

Step 1: Decide where you want to go. In order to do this, you first need to determine where you are right now – Your point A. That’s where you start from and is literally where you ARE right now. You are where you are right now, as a result of decisions you took in the past. Own it. Take responsibility for it. If you don’t like where you are, the worst thing you can do is to try and blame other people and circumstances for your “bad luck”. This is the worst thing you can do, because it keeps you stuck!

Unless and until you take responsibility for where you are right now, you cannot move forward. If you do, you realise that if your past decisions caused you to end up at point A, then the decisions you take right now will determine where you will end up in the future; where you want to BE.

Step 2: Buy a car for the trip, if you don’t have one. Your car is your network marketing company of choice. Choose wisely as not all cars are created equally.

Step 3: Fuel up for the journey. Buy some products at a discount from your company. This is for your own use, and to share with others on your journey.

Step 4: Release the brakes! The brakes in your network marketing business are literally all things that are holding you back. The most critical is your own thoughts. Thoughts of fear is one of the biggest brakes you need to release. Fear of what other people will think of you. Fear that you might not be good enough, smart enough etc. Learn to let go of these negative thoughts….it’s only in your head and they will only materialise if you choose to focus on them. If not, they have no hold on you. Read this again. And again. If you don’t focus on your fears they have no hold on you…..this empowers you to tap into your full potential.

Step 5: Step on the gas! Give it all you have got. Focus your thoughts, your energy and your actions on the three R’s of network marketing: Retail, Recruit, and Relationships. Take massive action.

keeping it simple in network marketing

An aeroplane uses most of its fuel during take off.

It stands on that runway, it revs up, then the pilot releases the brakes and accelerates! That plane charges down that runway…faster and faster….until it finally get’s airborne. The pilot then keep’s the nose up and keeps accelerating, gaining more and more altitude. He only levels off and ease of the accelerator once the plane is high enough. You have to do the same thing in your network marketing business.

Do you know how many parked and crashed network marketing planes are on the runways of this world? Thousands!!! Why? Halfway down the runway, they lose hope! They lose focus. Perhaps someone nudged them of course. Perhaps a spouse, relative or loved one gave them negative feedback or criticism. Who knows? Then they just quit. They might have been only 300 meters from lift off….now, they lost all that momentum and are back to square one.

Then there are those, who shortly after lift off, prematurely takes their foot of the accelerator…expecting the plane to fly on it’s own, just to see it smash to pieces on the runway moments later! I have personally crashed like this many times! Very silly, I know. 🙂 You put in all that effort, build all that momentum to get lift off, and then you take your foot of the accelerator too soon. This is a heart breaking experience.

 

When at first you fail, try again.

The great thing about network marketing however, is that you can always start over. Look at the above FIVE steps above – work through them. Learn it. Do it. Teach it. Try and try until your aeroplane soars through the sky…

Above all, learn to keep it simple, fun, and magical. That way you will attract many more people along your journey to join you. If you are frustrated and have a complicated business model, you repel people…they look at it and at you and think to themselves, “I don’t want’ to do that!”

You want the exact opposite reaction. You want people to look at your network marketing business and think, “hey, that looks simple, fun, and magical…I want in!!!” 

In order to achieve this, you have to keep it simple, and smile. 🙂

 

(Your likes, shares and comments are as always appreciated.)

 

Basics of the Herbalife Marketing Plan

Knowing the Basics of the Herbalife Marketing Plan

You do not need specialised knowledge and skills about the Herbalife marketing plan, in order to make use of it. All you need are a few basic Herbalife Marketing Plan Basics.

In this video we look at the following Herbalife Marketing Plan Basics:

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  • Understanding Herbalife Volume Points
  • The difference between Personal Volume and Personally Purchased Volume
  • Unencumbered Volume
  • How to use your Personal Volume to qualify to the Senior Consultant, Qualified Producer and Supervisor Levels in Herbalife.

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In life it is always better to know how to switch on the lights, than it is to understand electricity. You will find people sitting in the dark all day and night, trying to figure out and understand how it all works. They simply refuse to flip the switch until they understand everything there is to be understood about electricity. They refuse to trust you. They refuse to believe based upon your say so. The result: they remain in darkness for a very long time.

And then there are those who simply couldn’t care how it all works, as long as it works. As soon as they hear about the switch, they flip it! And viola; they have light!

The Herbalife marketing plan is similar. You do not need to know everything about it before you start making use of it. With electricity the end result you seek is light. So what’s easier? To first study how it all works and how you can generate your own, or to just flip the switch?

To flip the switch and benefit from the Herbalife marketing plan you only need to understand the basics covered in this video. Know what volume points are and how it fits into the marketing plan…then take action.

In the end, it’s about taking action. Nobody can flip the switch for you. That is something you have to do yourself. Your sponsor can guide you to where it is; and which direction you need to flip it, but in the end, you have to walk to it, stick out your hand, and flip it yourself.

 

This diagram about the basics of the Herbalife Marketing Plan will assist you:

 

basics of the herbalife marketing plan

 

If you like this post, please “like”, “share” and “comment”. Also feel free to grab a free copy of our e-book, Network Marketing Skill Sets.

 

 

 

Training Tuesday: Herbalife Presentation

herbalife presentationWelcome to Training Tuesday! We start off with a typical Herbalife presentation.

The idea is for you to familiarize yourself with the format of this Herbalife presentation, and then to do it yourself. You will find the slide show to this Herbalife presentation in your www.myherbalife.com back office.

So what is great about this presentation?

Well, for starters you get to see my pretty/ugly face again. 🙂 They say beauty is in the eye of the beholder. So how you do you behold?

On a more serious note, this presentation is an official Herbalife approved presentation. We suggest you stick to the official Herbalife literature and approved presentations that you will find on the myherbalife.com website.

It covers the basic history of Herbalife, the products and the business opportunity.

 

I have chosen the Herbalife Presentation that you will find on the United States myherbalife.com website, as a large part of our demographic, readers and followers are from the USA. Herbalife USA is also the “mothership” so to speak. That’s where it all started in February 1980, with the founder and first distributor, Mark Hughes. From humble beginnings the company grew to a world-wide giant in the health and nutrition industry. Mark’s dream was to take Herbalife around the world; customer by customer, city by city and country by country. The Herbalife products are currently available in over 90 countries. Mark’s dream is certainly being fulfilled.

The Herbalife products are the heroes of Herbalife. Each Herbalife product is assigned a volume point value. This is to ensure that worldwide, in spite of the different currencies, Herbalife has a way to track how much business is done. To learn more about Herbalife Volume Points, click here.

So, back to Herbalife presentation. The methodology of doing Herbalife comes down to using the products, wearing the brand and talking to people. What do you talk about? The content of this presentation! You share with them about the Herbalife company, the products and the business opportunity.

So, without further ado, here is the presentation. (Please like, subscribe and share.)

 

Training Tuesday: Herbalife Presentation