Pyramid Schemes?

[iceman504]

Wasn't sure where to put this but after talking with a few people today i have a question. since some of us go to work everyday to make money (for now) it got me thinking, If a pyramid scheme or MLM is pretty much one person having a downline of people isn't the businesses we work for the same thing? I mean Think about it you have the business owner then you have the CEO's and then you got us employees we make the least amount of money and the people above us are pretty much millionaire's are at least well off. Doesn't that sound like a pyramid scheme, so whats the difference between these business's online that are labeled as pyramid schemes and the one's we work for?
Not the clearest explanation but i hope it's clear enough to understand what i'm saying

[LightWerkz]

One main difference is the person above you (your manager/boss) has no commision if you do your job well, the company will just be better off. In a MLM /pyramid type scheme everyone makes money from the people they recruit and so forth.

[wully00]

Most people in a company add value -- owners have their money invested, CEO's direct the company, managers keep the company efficient (or try to, at least...).

Most pyramid schemes and MLM that I know of don't add value, just take profits. Does this make sense? Anyone else think this is the case?

[oldbuddy]

One main difference is the person above you (your manager/boss) has no commision if you do your job well, the company will just be better off. In a MLM /pyramid type scheme everyone makes money from the people they recruit and so forth.

You obviously have never been associated with an Auto Dealership or most other sales based organizations. Everyone above you gets paid more from additional sales you make.

[oldbuddy]

Most people in a company add value -- owners have their money invested, CEO's direct the company, managers keep the company efficient (or try to, at least...).

Most pyramid schemes and MLM that I know of don't add value, just take profits. Does this make sense? Anyone else think this is the case?

The MLM's that your model is based on don't make money for long. Without management a downline quickly grows stagnant and stops producing, just like your company model. If your sponsor is not adding value, you don't have much chance of success.

[wully00]

I don't have much experience with MLM's, so my apologies...

[biz-doggy]

I agree with oldbuddy on the point that "without management a downline quickly grows stagnant and stops producing". An upline has to support his/her downline consistently, and work like a team, to produce results.

[Reilly]

I think there is some confusion about what MLM's and pyramid schemes are. First of all, a pyramid scheme usually has no real product involved and simply works by getting people to buy into the scheme. An MLM is a distribution system that pays commission only on product sold. Therefore, as an upline to your team, you want to make sure they are succeeding or you won't make money. I don't see anything wrong with getting paid to make sure other people are succeeding as well.

[fruitengine_hannah]

isn't it there are lots of scams in this pyramid schemes??? there are lots of negative issues regarding this matter... don't get me wrong but I am just stating some facts...
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