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Business Brokerage On a call yesterday following the pyramid post, people wanted to know what to say if, they're presenting the business or product, someone pops the question,

Pyramid schemes generally ignore the actual selling of products and services, and concentrate on the commissions one could earn by recruiting new distributors. Pyramid schemes may or may not involve the sale of products.

Forex Broker "Is this a pyramid?"

Online Brokerage Before you brainstorm over your winning comeback, how about a quick check to see whether 1) your company acts like one or not, or 2) if you are acting like one (without realizing it, of course)?

The Great Pyramid of Giza is the oldest and last remaining of the Seven Wonders of the World and the most widely recognized pyramid in the world. It is part of the Giza pyramid complex. Though no pharaoh has ever been found buried in an Egyptian pyramid, it is presumed by traditional egyptologists to have been built as a tomb for the Fourth dynasty Egyptian king Khufu (also known under his Greek name Cheops), after whom it is often called Khufu's Pyramid or the Pyramid of Khufu.

Real Estate Broker Here's the question we discussed:

A regular pyramid is a pyramid whose base is a regular polygon and whose lateral edges are all equal in length. A pyramid is named by its base. Figure 1 shows some examples of regular pyramids. Figure 1 Some different types of regular pyramids.

Agency Brokerage Spark 1. Is your business all about recruiting?

You can have a terraced garden in approximately 6 feet of space for vegetables, flowers, or both and Pyramid Garden will hold 50 strawberry plants ... Pyramid Garden, Netting Netting for the Pyramid Garden, sold separately. ... Pyramid Garden, SPECIAL You receive 1 Pyramid Garden with all 3 accessories listed below PLUS 50 Ozark Beauty stawberry plants.

Business Broker If so, you are acting like a pyramid, according to Rushkoff's book, Coercion:

Brokerage Account "a pyramid scheme is...[where] the need to subscribe newcomers outweighs whatever benefits the products or system has to offer. Many MLMs sell distributorships more than cosmetics [name your product or service - KK]."

Stock Broker Yes of course you want to recruit reps - but if that's all you do, you are in the pyramid zone, because you give the impression that the product and customers don't matter, except to sell distributorships.

Brokerage Online Stock Trading Everyone quickly re-evaluated what they were doing to be sure they weren't coming across like that.

Broker Justin Ticket All could see how a fixation on doing 1. above might give someone else the impression that "Yep, there goes one of those pyramid schemers."

Real Estate Brokerage After a quick review of 9 different company pay plans (of distributors on the phone) it became clear - it's true what the recruiters say: "There's no money in customers. All the money's in the recruiting."

Commodity Broker Company owners decide where to put the money they pay their reps. Say a network marketing company pays out to the field, 50% of what it takes in. They have complete disgression on how to divide that up - between paying for recruiting and amassing customers (for those companies that make the recruiter/customer distinction - and some don't.)

Brokerage House So, how much were companies paying for getting customers (who were not also distributors)?

Real Estate Broker Exam On product orders ranging from $85-120, some people reported getting paid from 0 - 7%. In one company, they got nothing on those customer orders if they hadn't reached a certain position in the company based on their sales; and for other companies, the reps reported getting 5 or 6% for orders of $100. (A few paid more. List to be posted soon.)

Brokerage Services Five bucks for a hundred dollar customer order?

Broker Live Ticket There are much easier ways to make money than that!

Online Brokerage Firm However, for recruiting, we got much higher returns. With sign-up bonuses and fast start bonuses of $50-350 or more, for orders ranging from $300-1000.

Security Broker Dealer Who else wouldn't rather make $50 than $5 for making one sale? Big money in selling distributorships (which may include products). Versus getting just customers.

Coldwell Banker Residential So yes, companies whose pay plans are weighted so much to recruiting are acting like a pyramid. Worse, they make their reps look like it too, since they want to get the most return they can for their time, and would rather make $50 than $5. Who wouldn't?

Freight Broker Well, as they say, if it quacks like a....

Freight Brokerage Oh. What to say to that question, "Is this a pyramid" (or 'one of those things')? One option (we discussed several):

Broker Lie Ticket Let me tell you what we do, and you can call it whatever you want ok?

4th Boost Brokerage By PAUSE

Florida Mortgage Broker We market products directly to consumers, people like you and me, and we also find people who want to do that with us. You think you could do that if I showed you what to do?

Insurance Brokerage (That's from the Truth book.)

Online Broker And yes, there are other options...for another post...send in yours that have helped. (Use 'Comments' below).

Catalogue: Business | Marketing
Title: What To Say To, "Is This A Pyramid Scheme?" By: Kim Klaver

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