20/11/2025
MLM and Pyramid Schemes — What You need to know.
This year marks my 5 years in this industry.
I have a few lessons to share.
One of the arguments against network marketing is that, it is a pyramid scheme.
This is far from the truth
Let us set the records straight.
👉 A pyramid scheme is an illegality.
This illegality hinges on collecting monies from people without giving them any real product.
And yet promising them returns.
In the end, money flows to the top.
One day, leaders give good reasons why a system has crushed leaving "investors" broken hearted
👉 Network Marketing (MLM) is a different ball game. It is a globally recognized, registered and legal business model in which distributors market real PRODUCTS of a company to real comumers of the products.
The income generated in MLM comes through the stream of genuine sales.
Unlike a pyramid scheme, MLM does not rely on recruiting alone, but on repeated sales. Real value is provided.
Real consumers benefit from real products.
Teams are built, trained and maintained.
Why do people criticize MLM?
A lot of people think the MLM industry is a get rich quick scheme. They see it as money machine that should begin to work in a few weeks.
Team building and customer retention is a painstaking, time consuming and a gradual process that requires patience.
And many are not ready.
Bitter Truth
Attrition rate is very high. Research says attrition rate can be as high as 95%, so yes, a lot of people quit.
That does not make it a scam
A lot of people get scammed with certain brand names. That does not make it a scam
You just didn't find the right company to partner with.
People have applied for jobs, paid monies and never got them, does that make employment a scam?
In the end, MLM is only a business model where you are trained to be a tough leader, one who never quits.
In MLM we learn, we do and we teach.
By duplicating ourselves consistently, we build wealth genuinely
Pyramid Schemes eventually collapse, MLM lasts.
To be continued....
_________________________________
Sylvanus Gatorwu is a Coach in the TIENS Group Ghana , an 8-Star distributor and a certified city level lecturer