Pyramid Myth

Multi Level Marketing (MLM) The Pyramid myth and other

misunderstandings

By Ted Nuyten - The Netherlands www.businessforhome.org

Is MLM or Network marketing a Scam?

Madoff

By Ted Nuyten - The Netherlands www.businessforhome.org

Short answer ..

If MLM or Network Marketing is a pyramid scam, 67 million people worldwide, would be in prison ‌.

By Ted Nuyten - The Netherlands www.businessforhome.org

Long answer!

Network marketing and Multi Level compensation plans were declared legal ways of compensation over 50 years ago:

By Ted Nuyten - The Netherlands www.businessforhome.org

Direct Selling Organisation (DSA) •67 million Direct Sellers •95% has a MLM compensation plan •$110 billion revenue worldwide

By Ted Nuyten - The Netherlands www.businessforhome.org

Direct Selling Supporters • Bill Clinton - Former USA President

• Tony Blair – Former UK Prime Minister • Michael Gorbatsjov – Former USSR President

By Ted Nuyten - The Netherlands www.businessforhome.org

DSA Facts & Figures • USA is the largest market, 15 million distributors, $30 billion revenue Country

Year

Revenue

United States

2007

$30 billion

15,100,000

Japan

2006

$20 billion

2,700,000

Brazil

2008

$10 billion

2,200,000

South Korea

2007

$9 billion

3,187,933

Germany

2007

$9 billion

778,000

Mexico

2007

$4 billion

1,900,000

United Kingdom

2007

$4 billion

419,500

By Ted Nuyten - The Netherlands www.businessforhome.org

Distributors

Misunderstanding: “Only the top make money” • There are numerous examples of

distributors who make more money then people who joined earlier…

By Ted Nuyten - The Netherlands www.businessforhome.org

Why? If it would be not possible to earn more then your up-line, nobody would join an opportunity‌.

By Ted Nuyten - The Netherlands www.businessforhome.org

An other way to explain this misunderstanding If you introduce a “Top Earner” you could make a small fortune.. The “Top Earner” will earn more, but you can receive a % over his or her earnings.

By Ted Nuyten - The Netherlands www.businessforhome.org

Misunderstanding: “You have to be broke to start” • Some people are broke, however people from all walk of life join Direct Selling • Millionaires, Actors, Doctors, business men, stay home moms and many others..

• The start up costs are often between $25$500, a small investment to start a great business.

By Ted Nuyten - The Netherlands www.businessforhome.org

Fact: The average Top Earner Income The average Top Earner make approx. $ 25.000 a month / $ 300,000 a year.

There are over 5,600 people who make a full time year income ($60.000+) with Direct Selling Source: www.businessforhome.org

By Ted Nuyten - The Netherlands www.businessforhome.org

Fact: Newbies often introduce Top Earners The majority of Top Earners are introduced by rookies. People with no experience in direct selling!

By Ted Nuyten - The Netherlands www.businessforhome.org

Where is the money coming from? 

 

The majority of the revenue in Direct Selling (80%+) is coming from customer orders. People who only want the product.

It’s obvious that a customer will not be rewarded as a networker.

Customer revenue is put into a “networkers pool” and is rewarded to networkers who build up an Direct Selling organization.

By Ted Nuyten - The Netherlands www.businessforhome.org

A few MLM Celibrities‌.

AC Milan, Boston Red Sox, Phoenix Suns, Inter Milan, and many more endorse MLM products

By Ted Nuyten - The Netherlands www.businessforhome.org

Success!

By Ted Nuyten - The Netherlands www.businessforhome.org