How to Handle Pyramid Objection

It’s gonna happen if it hasn’t happened to you yet.  You decide to venture out and approach someone who has NEVER been in network marketing.  The only thing they know about network marketing is that it’s a PYRAMID, so they think.  How in the world are you going to overcome the pyramid objection?

The first time I encountered the pyramid objection in my business, I wanted to run the other way and not even waste my time trying overcome the objection. After clearing my head, I decided this can’t be the first time I am going to hear this objection so why not master the objection.

So let’s first define the difference between a pyramid scheme and a legitimate network marketing business understanding.

What is a Pyramid Scheme?

pyramid scheme is a fraudulent money-making scheme that is based on a non-sustainable business model that involves the exchange of money primarily for enrolling people into the system without a legitimate product or service delivered.

The easiest way to identify a pyramid scheme is to look at the business and see if there is a product or service involved.  If there is not then yep, it’s a pyramid scheme.

Another example would be that you actually don’t get a legitimate product or service in return for your initial investment.

Bottom line is a pyramid scheme focuses on the investments (cash-0-la) of people.

What is a Legitimate Network Marketing Business?

Network marketing is a business model that allows a company to sell their products and services directly to the consumer. Advertising is done through affiliates instead of typical advertising such as, TV ads, billboards, magazines, newspapers, etc.

The company saves money in advertising by rewarding their distributors through commissions for their efforts in selling/promoting their products.

See examples below of what “looks” like a pyramid.

Pyramid Objection

But, I have to say this is the funniest video I have ever seen on handling the pyramid objection.  Don’t miss it, I promise you will laugh.

Below are some examples of how to handle the pyramid objection.

Note: Always smile and don’t take the pyramid objection personally.  Just be professional and answer with confidence.  The goal is to understand why they are using the pyramid objection.

Answer the ? with a ?:

Prospect: Is this a pyramid scheme?

You: What do you mean by pyramid scheme?

Prospect: Well is this a type of business that you recruit a bunch of people to earn money of of them?

You: Is that what are you looking for?

Prospect: No!

You: Well then, welcome aboard!

Look Puzzled:

Prospect: Is this a pyramid scheme?

You: Huh?! (Scratch your head and look baffled) No, of course not!

You: Here…it only takes 5 minutes to sign up!

I Don’t Know Answer:

Prospect: Is this a pyramid scheme?

You: I don’t know but all I know is that Mr. X in my company went from the bankruptcy, losing his house, having only $2 in his bank account, and over 30K in debt and now he is the top earner in our company.  But, he had an open mind and a strong enough why to overcome his obstacles and in his first month he made $2400.  In his second month he made $5000. and now after 1 year he is making $45,000 a month.

You: So Mr. Prospect do you want to make a little bit of money or a lot of money?

Prospect: a lot!

You:  Well then, welcome aboard!  It takes 5 minutes to sign up, how would you like to pay? Visa, Mastercard or Discover…

The Pyramid Answer:

Prospect: Is this a pyramid scheme?

You: You mean like in corporate America? Like the company you work for? I bet your CEO earns off of your President who earns off of the VP who earns off of the Sales Manager who earns off of the Sales Guys… I right?

You: So my question is do you like that your boss makes more money than you?

Prospect: No

You: Wouldn’t you like to be in control of your own income?

Prospect: Yes

Great…do you want to make a little or alot of money?

Prospect: a lot!

You: Great Welcome aboard!

The Money Game Answer:

Prospect: Is this a pyramid scheme?

You: Pyramid Scheme are just a money game, and we are in an advertising business. Why you like gambling by playing the “money game”?

Prospect: No!

You: Welcome aboard!

You don’t need to explain the difference between the pyramid and a legitimate MLM unless your prospect ask you the difference between a network marketing business model and a pyramid scheme.

What your prospect wants to be assure of is that they are not entering into an investment scheme.

Sadly, bad news travels faster than good news. And much of the positive news about the opportunities presented by network marketing businesses is overtaken by the few bad ones that manage to get their way at the headlines. Add to these the numerous so-called “experts” who mistakenly conclude that all network marketing opportunities are Pyramids.

Just remember the pyramid objection is like any other objection and should be handled professionally and by no means should you take it personally.

Comment below on how you have handled the pyramid objection in your business.


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