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Is this a pyramid scheme?
Is this a pyramid scheme?
Many of us in Plexus get asked if this is a pyramid scheme.
Let's break that term down.
Pyramid:
Pyramid:
- Every large company I know of has this shape: executives at the top, middle management in the middle, and lower-ranking employees at the bottom.
- Every large company HAS to have this shape to work effectively!
- We've been watching the leaders of our team for a while - and they work HARD! They have put hours and hours into this company and into us, into encouraging and supporting those who started out where they were a few years ago.
- We've contacted these leaders and had them respond to us, in a way that almost no CEO would respond to the lower-ranking employees in his company.
Scheme:
Scheme:
- A scheme is "a plan or program of action, especially : a crafty or secret one" (https://www.merriam-webster.com/dictionary/scheme)
- If you want to think of Plexus as a plan of action to make people feel better, then I suppose you are correct in assuming it's a scheme.
- Is it a crafty or secret plan? Since the compensation plan is readily available, I don't think that description applies!
But is Plexus a PYRAMID SCHEME? According to the FTC*, legitimate multi-level marketing companies (and not all are legitimate!) will have a real product to sell. Plexus definitely has real products to sell, products that have improved the quality of life of thousands. Many people are even finding they are paying less for supplements - and having to take fewer supplements and getting better results!
Shoshanna Easling says it's less like a pyramid and a lot like a sunburst effect. Check out her video!
Here's an excerpt from a Huffington Post article on network marketing:
"Something to keep in your back pocket: when you’re buying from a chain store, you’re helping contribute to the retirement of the millionaire or billionaire CEO. When you’re buying from a small business owner, you’re helping pay for that family’s groceries, you’re paying toward the electric bill and helping Tommy afford a baseball glove or helping pay down Sarah’s outstanding hospital bill....
And these small businesses - well, there’s nothing small about them with the amount of effort and time that these Entrepreneurs are putting into them. Yes, it’s more than a few posts on social media. Yes, it’s more than setting up a couple groups or sending out some invitations to their next party or group. Yes, it’s even more than posting those witty, inspirational sayings or selfies you see each day.
It’s staying up late and getting up early to plan and strategize what you need to do to grow your business and share your product.... It’s constantly learning the most recent updates in your business, adding to your contacts to ensure you are on the path to growing a thriving company, and working on your own personal development of bettering yourself as a business owner."
*The Federal Trade Commission warns, "It’s best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products." It states that research is your best tool and gives eight steps to follow:
- Find—and study—the company's track record.
- Learn about the product.
- Ask questions.
- Understand any restrictions.
- Talk to other distributors. Beware of shills.
- Consider using a friend or adviser as a neutral sounding board, or for a gut check.
- Take your time.
- Think about whether this plan suits your talents and goals.
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