How to Deal with the “Pyramid Scheme” Objection

Everybody’s heard of “pyramid schemes” but most people have no clue what they actually are, ask the average man on the street to explain the term and he’ll probably fail miserably.

The press and news media always uses the term detrimentally when talking about MLM (Multi-Level Marketing) or network marketing so when you hear the words “oh but this is just another pyramid scheme” from a prospect, then it’s a good idea to know how to get around this common objection.

It’s tough at first. You may be giving a great presentation and feeling quite confident when this objection is thrown into the conversation. Whether it’s a face to face meeting or on the phone you’re going to have to learn to handle this confidently and without confrontation.

Part of your training as a network marketer should include understanding how and when this industry started. If your company has not filled you in on the background, then it’s up to you to do your homework. The history is interesting and many of the companies that work within the MLM business model generate billions of dollars worldwide every year.

This industry is either called multi-level marketing (MLM) or network marketing. It works just like any other business. There are people at the top, the CEOs, the owners, the regional managers etc. who make more money than the local managers and general staff. You could put any business model into the form of a pyramid.

The most common objections:

Is it Legal?

Of course it is! This is a multi-billion-dollar industry that has been in existence for over 100 years and like any other business in the United States it’s open to scrutiny and regulated by the government. Every major network marketing company has a website and operate in an open and transparent way they’re not like secret societies!

It’s Only the People at the Top That Make the Big Money!

Isn’t that true in any business? How many of our parents worked for the same company for 30 or 40 years hoping for the next big promotion? You can get to the top in network marketing without waiting – your success is entirely dependent on your own efforts. The more successful and effective people you can recruit into your downline, the more money you will earn. Some people can do this in just a couple of years. The only person who will hold your business back will be you.

Successful network marketing companies have heard all the objections and you should be able to attend classes or presentations that explain how you can effectively overcome these objections. If you haven’t joined a company yet, inquire about the different kinds of training a company offers before you sign on the dotted line.

A good network marketing company wants YOU to be successful, because without effective representatives they wouldn’t have a business. The company should offer you as much help as you need either with regular training or via the knowledgeable and experienced sponsor who recruited you. The more you know about the history this industry the easier it will be for you to deal with these negative questions.

Once your prospect realizes that Amway, Mary Kay, Pampered Chef, Avon, Herbalife and all those other network marketing businesses that have become household names are not dubious pyramid schemes but legitimate businesses, the faster you can get onto more positive ground and help your prospect reach his financial goals.

How do you deal with these “pyramid scheme” objections? We’d love to hear from you if you have any further tips or comments on this subject.


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