That Sounds Like A Scam / Pyramid Scheme!

This article goes out to all the entrepreneurs, home business owners, and bravehearts with the tenacity to do something different and follow their dreams!  I would also like to share a little bit of history about a man named Charles Ponzi...

I'm no Charles Ponzi, that much is certain.

I am new to the world of network/referral networking (a.k.a. MLM) but I have been around enough to notice that any time someone has an opportunity they are excited about, there are plenty of naysayers quick to shoot down their dreams.  I have only just started sharing the MCA business opportunity as well as other prospects and products I truly believe in, only to be met with the dreaded response I am sure many of you have heard or said yourselves:

That sounds like a pyramid scheme!

When responding to such a blunt and perhaps caustic claim, there are countless routes one could take.  It's important to note that this superficial, knee-jerk reaction is usually touching upon deeper root issues and questions, such as:

• Is this company reputable?
• Should I risk my reputation/friends for this?
• What is the potential risk versus the reward?
• How long have they been around/established for?
• Is it working for you?
• Can it work for me?

Change is scary so doubt and debunk are the first reactions to claims of "a better way".  These questions are all loaded and perhaps even after addressing them the doubt, fear, and comfort/complacency I have touched upon in other posts would take over.  Even when people know there is a need for great change, they may fear it because at least they are making it, albeit barely scraping by.

Let's look at some facts that could put the pyramid scheme/scam business to bed...




Pyramid Vs. Ponzi Scheme

The terms pyramid scheme and Ponzi scheme are almost synonymous but, for our purposes, I would like to make a distinction.  There's a rather extensive history behind the latter so I recommend reading the Wikipedia entry on Ponzi schemes.  As you can see, pyramid schemes have a history that date back to the 1920s, maybe earlier.  Education is the first step to empowerment, and it goes well beyond the classroom, online or offline, my friends!

Note that Ponzi schemes are highly illegal because there is no actual exchange of goods/services for money.  It is 100% about recruiting others so you can recoup your losses and perhaps turn a profit.  The FTC and other organizations are quick to point out such systems and shut them down.

It is the unfortunate reality that most see a pyramid shape to an organization and automatically assume it is a scheme (read "scam").  The best thing to do before regurgitating those words we dread is to simply do some research.  If the product or service is real, it is not a Ponzi scheme though it may look like a pyramid scheme by design.  These are two very different things.  


Capitalism & Corporate America Are Pyramids

Whenever someone gets stuck on that scary pyramid shape, let's be honest with ourselves and our audience: pyramids are everywhere!  Corporate America and capitalism as a whole are pyramid schemes, or at least structured that way.  The people at the top make the most money and likely do the least work while work increases and income potential decreases the further you go down the pyramid.

I think this humorous comic strip says it all and yet the masses still subscribe to the old way of doing things, knowing they will struggle while the 1-5% continue to thrive.  Capitalism, can't live with it, can't live without it.  (Thought I should lighten up the mood some.)

I would venture to say that online and home-based businesses finally give us a chance to make what we are really worth and not just make others rich.  It's a more balanced, fair endeavor.  As some may say, it's the great equalizer.
 

Fear Of The Road Not Taken

As I have said countless times, fear is a very powerful thing.  We all have had moments where we deny ourselves of something we deserve simply because we are afraid.  Fear of change is one of the most common fears out there.  We may be tired of the way things are but at least we have a routine and there is some comfort, if not security, in the mundane.

Typically, the only way to break from that fear is to finally get sick and tired of being sick and tired.  Stop me if you've heard this before but, when your dreams finally become bigger than your fears, or you finally decide that enough is enough, then opportunities really start to open up.  The blinders come off and we see there are other ways, better ways even!


Responding Passionately, Not Aggressively

Dealing with rejection is always tough and it's not much easier when prospecting and sharing great opportunities with others.  The temptation may be to go into "verbal dump mode" and try to address every fear, question, or root issue in one fell swoop.  This may be well-intended but usually has terrible results.  Your passion may seem like desperation or aggressiveness on the other end.  

I believe there are only a few steps that will yield positive results and save everyone time (and frustration):

• Put yourself in their shoes then ask one calm, simple discovery question to find out what the real issue or obstacle is.
• Listen more than you talk.
• Leave them with a simple one or two step process for follow-up (the less steps, the more likely they will take them).

You may very well have all the answers but sometimes prospects just want to be listened to or given some alone time to digest all the information they have been provided.  Heck, feel free to use this blog as a follow-up tool.

How do you respond when someone says the opportunity you are so excited about is a scheme or a scam?