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For everyone involved in the network marketing industry, having to handle objections is just part of the business.

We hear all kinds of them, and some more often then others.

But make no mistake, we all hear the same ones, even though we speak to different people.

So, in today’s blog post, I am sharing with you how to handle the network marketing objection “Is This A Pyramid Scheme” and overcome it with ease.

Why Use The “Pyramid Scheme” Network Marketing Objection?

First thing to help us overcome this network marketing objection, is to understand why people are using it.

If they are not seeing the value in the opportunity or product you are sharing, they are likely to use an objection of some kind.

But, like I’ve mentioned before, people use objections to get out of the presentation because they have no interest in joining.

If you feel someone is throwing an objection due to not being the right person for the opportunity, then just let them go and move on.

There is no need to prospect someone who is not going to join. Nor is there reason to get someone who is not the right person, involved in your team.

But, when you see a person is legit in their objection, then there is a way to overcome such a thing.

Now we will look into how we can overcome the network marketing objection “is this a pyramid scheme” and go on to sign them up.

What Is A Pyramid Scheme?

What many believe it is, is network marketing in general.

Since you have a pyramid where there is someone on top, and it continues to increase in size as it moves down, people believe it’s a pyramid scheme.

But in reality, a pyramid scheme is where there is payment involved without a product. Keep that in mind.

A pyramid scheme example would be: “Send me $50 to get your book on how to get someone to send you $50 for a book”

Or an even better example would be those mailers you get where they ask for you to send a dollar to the name on the return address, and you’ll get put into a pool of more people sending you a dollar.

Network Marketing is an affiliate based industry, in a franchise style.

Meaning you get paid a percentage of all your sales made, plus anyone you introduce to the model, a percentage of their sales. This goes on for many levels so many refer to it as Multi-Level-Marketing.

Is This A Pyramid Scheme?

Now if someone asks you if your opportunity is a pyramid scheme, there is a couple ways in which you can address the question.

First, you can tell them it is not, because you have a product being sold.

Many may not know what that means, and this really helps to overcome the objection.

When you address “No, we have a product” they sometimes think to themselves ‘do I know what I am asking?’ 

This also leads to a prospect asking why that mattered. You simply explain a pyramid scheme is where money is exchange for nothing.

The second way to overcome the network marketing objection “is this a pyramid scheme” is to ask your prospect what a pyramid scheme is.

Many will say the same thing, “It’s where the people at the top make all the money while the people at the bottom make little to nothing”.

When people say this, you can assure them it’s not. As in your company, it doesn’t matter where you begin, the ones who make the most are the ones who get the most results.

What the prospect explained, was most companies. Such as Wal-Mart. Where the people at the bottom will make little, no matter how well they perform. They must wait for someone to quit, get fired, or die before they even get considered to get a raise or move up.

Explaining this to people, and how you can move up according to your results in your opportunity, makes your company and business model far from what a pyramid scheme is.

I Don’t Like Someone Making Money From My Efforts

I’ve heard this before, so I am sure you have too, or will eventually.

A person who thinks that I get a cut of their money, when they get a result or sale.

If you come across this, make sure that the prospect does understand, it does not come from his check.

Many think that if you get 50% of their sale, then they are splitting the commission with you.

So be sure they know that they receive all of their commission, and the company will pay you directly from their own pockets.


Some think that sponsoring others is not a good thing.

If they ask “why would I have to sponsor people”, you handle this by explaining to them that they do not have to in order to make income.

The only reason this is in place, is so you will share it with others and not hide the fact they too could earn from the sales.

If you were paid nothing from someone you shared the opportunity with, why even tell a soul? You’d create your own competition.

So to keep competition from sparking, and to create a team and helpful environment, they offer a reward for helping others start their own business, and an incentive for you to help them get sales.

If they still can’t understand from that, they do not belong in the business.

Network Marketing Objection Handling “Pyramid Scheme” Overview

So, now you have an idea on how to handle this network marketing objection.

It will be a common one you hear, but perhaps not the most common of all.

Always be sure to prospect, and practice talking to others as this helps you get better and eventually overcome most network marketing objections in general.

But, when you get this objection, you have two ways you can approach it.

I usually mention “no, we have a product” because it will lead to having them explain what a pyramid scheme is to them. Which from there makes network marketing look much better then a standard job.

Good luck with prospecting, and I hope you got a lot of value from this post today!

Did This Help?

If you got value form today’s blog post, please be sure to leave a comment below.

Also, leave a comment on how you handle this same network marketing objection, or if you do at all. I always value your feedback and appreciate all comments.

Be sure to share this with your team members, and on your favorite social platform. Getting the word out that network marketing is a better way is important for all of us.

P.S Want to get in the “Green” rush of the new year? If you’d like to have me build a business and downline for you, and get paid on what I do as well, then simply take the free tour below that will explain more on how this works. See you on the inside!



Jaye Carden
Jaye Carden

Self Employed Network Marketing Entrepreneur

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