I still think it is a pyramid scheme...(Pyramid Scheme Cartoon by Pat Petrini)

http://www.PatPetrini.com

For all of us in the network marketing industry that have met somebody like this. ;-)

A hilarious cartoon on the misconceptions between network marketing and pyramid scheme.

http://www.PatPetrini.com

Pat began building his XanGo business at the age of 22. Within one year Pat was out of the 'rat race' because of the residual income provided by his XanGo business.

Pat now spends his time traveling the world while coaching and training people to build successful home-based businesses in the network marketing industry with XanGo.

He has spoken in front of audiences of thousands for businesses and universities around the country on such topics as lifestyle design, time and financial management, leadership, home-based businesses, network marketing and many more.

Pat is the co-author of the popular audio presentation with Tommy Johnson, The Perfect Business for the Young Entrepreneur, which can be found at http://x1tools.soundconcepts.com/p/XC084

About XanGo

A leading global nutrition company, XanGo, LLC is a recognized category creator as the first company to market a premium mangosteen beverage, XanGo® Juice, to consumers worldwide. XanGo continues to lead the category by driving the research, development and advancement of functional mangosteen products. It has expanded its roster of premium, functional products to include 3SIXTY5™, a whole food nutrition multi-vitamin, along with Glimpse™ Intuitive Skin Care. XanGo is privately owned and powered by a global network of 1 million independent distributors in the U.S. and more than 20 international markets such as Canada, Mexico, Japan, Germany and Malaysia. For details, visit http://www.xango.com

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[Darryld1]

It does not matter how the words and terms are mangled, it's Pyramid selling. The only way to climb the 'levels' is to sell more products and invite more people in so that they boost your personal sales and create a new, lower level. So in effect, what is happening is that the original person is not 'climbing' anything but is instead having deeper layers developed below them as more and more people join. The rhetoric used to justify this is nothing more than semantic word games.

[PatPetrini]

@Darryld1 So, what you are saying is that you can't make money unless you build your own sales team and sell a lot of product. Hhhmmmm...sounds a lot like every sales organization I've ever heard of. :)

[HillChris1234]

Network marketing is a pyramid scheme. Just because you create a crappy product to hide what you're really doing doesn't make it any less so. I'm serious! "Hey, look at my crappy products!!! But, where I really make money is by recruiting others to sell the crappy product." See, the difference is, managers in real businesses don't "recruit" salespeople to sell their own stock of crap, they "hire" salespeople to sell their crap.

[PatPetrini]

@HillChris1234 I see...so if I hire people to sell products instead of recruiting them, then everything is different, right? Makes total sense! :)

[ajzile]

@eb2112 finally someone who has common sense !!! it annoys me so much, people think that when they sign up for a network marketing company money is just going to flow into their pockets without doing any work. then when they don't get paid they jump to the conclusion and say "oh i'm not getting money this business it must be a scam ...."

[jubetily]

I think it's pretty obvious what people really dislike about Network Marketing Companies. You get paid by commission than by a set salary. My answer to that is I'd rather work to make my 6 figure income and eventually build a team to make money and teach THEM to do the same and live out their life dreams than sit in front of a cash register 8 hours a day for 20k a year. But that's just me.

[prestojazz19]

@HillChris1234 oh no! I just realized that Howard Schwartz the ceo of Starbucks has 15,000 stores! He gets paid every time every single employee sells a cup of coffee... how did he get 15,000 stores? after 3-4 stores he showed a friend how to open up a store , that friend showed another how to open a starbucks stores that wanted to make money like that... Howard Schwartz gets paid on all the starbucks stores/franchises opening still... Hmmmm sounds like a pyramid then? heh

[Awethentik]

MAD FUNNY!!!!!!! Gotta Love It!

[discodubber85]

Like ANY business, 1 person can only do so much. Was the Walmart empire built entirely by 1 person? No. He hired people, who hired people, who hired people.

Amway does NOT pay a head-hunting fee (reward for recruiting). What an upline IBO is paid for is volume through his team. I find you and share an opportunity, you sign up, I train you, get you educated in the business, and mentor you. Amway sends us BOTH a check for volume.

[discodubber85]

The US Gov't defines an illegal pyramid scheme as a business which pays people to recruit people to recruit people. There is no commerce (exchange of goods or services).

ANY business relys on people.

I am an Amway IBO. We sell product. We are independent contractors (that's a tax form 1099), meaning we represent Amway, however, we are Independent Business Owners, not employees.

Amway pays us for 1 thing: product volume. That's it. The more my organization sells, the more I get paid.

[65Dena]

Money doesn't flow into anyone's pockets unless you are a celebrity. Just as in life and in work, you wil find good companies and bad companies. To say that all companies that use Network Marketing are frauds is like saying that all people are good. Some are good and some are bad, I happen to work for a wonderful co, AmeriPlan USA. We have a Wonderful, much needed product and we dont hard sell either the products or getting people to become members

[SellMeLies]

so awesome!

[bodybyvichallengtn]

Awesome Video Wonderful Information!

[agrowingtime]

Cult like elements all the way...

[ajzile]

@darryid1 well i can reply anyways ... all network marketing businesses isn't physical product based (like the one i'm in ). sounds to me like your one of those people who went into a business, bought and overstocked on a product :D:D have a great day my friend :)