If It Quacks Like A Pyramid...

Who gets the Pyramid Quack award?

On our conference call the other day, people wondered how to talk and act so that people would stop asking "Is this a pyramid/one of those things?"

One way is to stop, forever, saying and doing the things that evoke this image in the minds of others - i.e. people "who abuse their friends and try to sell them stuff, and get them to sell and take a percent."

For years, it's been all about getting people to sell and recruit. That's the reason countless people discouraged (and ridiculed) my customer-oriented students, "There's no money in customers. All the money's in the recruiting."

I've taught hundreds of classes to those who prefer to amass customers. It's lucrative in some companies, and many stayed in the business because they learned how to do that, instead of quitting.

But some companies pay you to act like you're a pyramid type. We will bestow upon them the "Pyramid Quack" award. Yes, here. To encourage them to change their pyramid quacking ways which make their people look bad.

If it quacks like a pyramid...

"a pyramid scheme is...[where] the need to subscribe newcomers outweighs whatever benefits the products or system has to offer. Many MLMs sell distributorships more than cosmetics [name your product or service - KK]." -Coercion: Why We Listen to What "they" Say

Some people don't know it from the way the business is promoted, but we do two things to make money in the network marketing business:

1) get customers (earn a percent on their orders)
2) Get sales reps who want to get customers and more sales reps (earn a percent on their orders)

So based on what they pay people to do, which companies get the Pyramid Quack award?

One gal, Phyllis, a Tahitian Noni rep for years, told the group this:

Typical order: $120 for the Noni juice per month.
Pay for getting a customer (who doesn't sell it) to buy it: 6%. That's like $5 for getting a $120 order.(!!)

With such puny pay, who'd want to go after customers? They don't, and haven't, for years, she said. This pay plan tells it all: We pay you to get recruits - people who sell it. We don't care about customers who just buy it (and who don't sell it).

So, we were about to bestow upon the Tahitian Noni International pay plan, the Pyramid Quack award.

Then with great pride, she announced to the group: "But Kim, this past year they've worked to change it - because I think they heard you. As of May 1, 2006, they are paying 20% for customer orders. So now we get $24 for each of those orders!"

That's what, 3 days ago? After almost 10 years of being in business.

(This conference call will be up on the Talking about Your Great Thing podcast site later this week, so you can hear the juicy details for yourself.)

Tomorrow's blog: The story on the pay plans of two more companies: Young Living and Life Wave. Do they get the Pyramid Quack award or not?

Send in your company plan plan info and see if it gets the Pyramid Quack award. (Use Comments below.) Here's what info to submit:

1. What's the typical customer order amount? And what do you get (range) if you find them, front line them, and they do NOT sign on to sell anything?

2. Name of company. And YOUR NAME.

Then we'll check it out, and award the Pyramid Quack award to your company, or not.

After all, if it quacks like a pyramid...

Kim Klaver is Harvard & Stanford educated. Her 20 years experience in network marketing have resulted in a popular blog, KimKlaverBlogs.com, a podcast, YourGreatThing.com and a giant resource site, BananaMarketing.com which features hundreds of stories, tips, books and CD programs for those who want to learn the art of network marketing.

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