How effective would my blog be without mentioning what business I do and what the model is? Not very effective at all. As I mentioned in prior posts, I am in the health and wellness industry. The business model is Network Marketing. Uh oh!!! This is the part where everyone runs for the hills screaming ITS A SCAM, SCHEME, PYRAMID (or some other geometric shape) right? Well, maybe thats because what you know of the business may be just from what others tell you or perhaps your own experience is negative. I would like to address these 2 issues here. I hope I can shed some light on this topic. Perhaps you may see something you did NOT know.
Let me address the primary issue everyone has about this business...ITS A PYRAMID SCHEME! Ok, a TRUE pyramid scheme is NOT a true form of business or a sustainable form of business. This scheme purely revolves on enrolling people into the scheme with the lure of money, purely for the sake of enrollment. There is no product or service being bought or offered. Hence you are paying money in exchange for NOTHING. That is the true scheme and as the name refers to, it is in the shape of a pyramid. This type of activity is illegal in all 50 states and in most parts of the world.
Here is where a discerning mind should question and consider this fact: If Pyramid schemes are illegal, how is it that there are so many companies that use this pyramid model that we all run from? The answer is simple...a Pyramid Model is used in just about EVERY form of business out there. Its just that the illegal ones have cast a negative light on the term. In fact, if you are at your job, ask your HR person or supervisor for a listing of the corporate structure of the business. Once you get it it might look a certain way. I will avoid the "PYRAMID" term here. Lets use words people are more comfortable with. Your organizational chart will look 1 of 3 ways: 1) Hierarchial 2) Matrix or 3) Flat. Statistically speaking, Hierarchial structures are the predominant business structures used. Here is he definition of it in Wikipedia: "A hierarchical organization structured in a way such that every entity in the organization, except one, is subordinate to a single other entity. This is the dominant mode of organization among large organizations; most corporations, governments, and organized religions are hierarchical organizations. Hierarchies denote a singular/group of power at the top, a number of assistants underneath and hundreds of servants beneath them." In other words, there is a person or small group at the top with many below....Top to bottom structure....UH OH a PYRAMID!!! Now before you flip out...just relax and realize that just about any job you have ever had...you were in and still are in a pyramid structure...hierarchy...model...WHATEVER!!. There is good news though. Keep reading and find out what it is.
Network Marketing and the companies who use this model still use a Hierarchial form of business. You can say pyramid you know. There is good news about this form of business...at least for the company I am with. I will not speak for others. It is an INVERTED PYRAMID. Traditional business cannot survive without KEEPING people at the base of the pyramid. This model cannot succeed for you or others without bringing you to the top. Dont believe me? Fine. Go to Barnes and Nobles or any other venue. Pick up, or just go to the page if you chose, Why we Want you to be Rich by Donald Trump and Robert Kiyosaki (hmmm...I think these 2 know a little bit about business and how to make some serious money dont you?) Look at chapter 27 page 307-308. This is Robert Koyosaki's response to the Pyramid Scheme question everyone LOVES to ask. Here is one GREAT point that I love about this. If a Network Marketing business is an inverted pyramid, it means then that you really have no superior or subordinates...everyone dictates their own pace...their own level of success...your own creativity. When was the last time you heard of a job offering that to you? There are so may other things to say about the business. I will save that for the next post.
Now that I have explained the model, I hope you have a clearer understanding , in principle, of Network marketing. I will be writing some more posts about this business so that you can gain more insight into a revolutionary form of business and a way to achieve a LIFESTYLE. I wish you all a VERY HAPPY NEW YEAR!!
Monday, January 5, 2009
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1 comment:
Hi David,
I enjoyed your blog and you have a great way of getting the message across.
Warmly,
Cari S
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