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Bad Arguments: Misrepresenting Pyramid Schemes, esp. by people who should know better

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Some of the most persistent bad arguments presented by network marketers (not just noobs, but also many veterans) are various misconceptions about pyramid schemes, and using those misconceptions to explain how network marketing is NOT like that. However, that explained nothing since the rebuttal is based on a misunderstanding.

Today, we shall explore a website called "Engineered Lifestyles" by a guy named Jamie Messina, who claimed to be an automotive engineer before getting bitten by the network marketing bug. You'd think that an engineer would know about a bit of critical thinking... but let's look at the evidence, rather than presumptions.

Okay, what does Jamie Messina say about pyramid schemes? This can be found at:

http://engineeredlifestyles.com/mlm/pyramid-scheme.html

For a page with the title "Recognizing Pyramid Schemes, and subtitle: Is MLM a Pyramid Scheme?", the page is surprising light on information, as there is not a proper definition of pyramid scheme on this page at all. Instead, the entire page is actually a sales pitch about network marketing in an attempt by pointing out the pyramid like structure is all around us therefore a pyramid shaped organization is nothing to be afraid of.

While technically correct, that pyramid shaped organization is all around us and nothing to be afraid of, it is IRRELEVANT as it has NOTHING to do with a "pyramid scheme". This is a very common obfuscation defense even by famous "advisors" such as Robert Kiyosaki. A pyramid scheme is a type of FINANCIAL FRAUD and nothing nothing to do with organizational shape of an organization.

Jamie has gotten off to a bad start. Let's see if he can redeem himself in the second half...




Unfortunately, the second page revealed that Jamie Messina was bitten by the "recruiter" type of NM bug... that he doesn't care about sales. Remember, it's called network "marketing" for a reason, yet there's nothing here about sales or marketing. Instead, it's all about recruiting. This particular paragraph from his 2nd half really illustrates the point:
Alice Krige as the Borg Queen in First Contact
Alice Krige as
the Borg Queen in First Contact
(Photo credit: Wikipedia)
Below you will be your frontline distributors / associates. These will be the individuals that you personally sponsor. They in turn will start to sponsor individuals just as you have. However when they sponsor a new distributor / associate it is their frontline distributor / associate and your downline. As there are more people below you this will benefit you from leverage and duplication.
"Leverage" and "duplication"... Sounds like the Borg, doesn't it? All they do is hit more creatures with the Borg nanoprobe, which takes them over, and turn them into more Borg.

Note that there's no mention of the word "sales" or "marketing" in the article at all. NONE WHATSOEVER (other than "network marketing", which is not defined)

It's all about recruiting more people, and have the people you recruited recruit even MORE people. (Marketing? What marketing? Just recruit more people!)  Just like the Borg.

Yes, I may have exaggerated somewhat, but only somewhat.

It's clear that Jamie Messina has absolutely NO understanding of what network marketing is other than what his upline told him directly or told him to read (which would be MLM marketing books)

In a way, I don't blame him, as he's obviously taught by someone who were taught by... recruiters. Somehow he doesn't see what he taught was... offbase.

Network Marketing is marketing first, network second. Network is used as an adjective to modify "marketing". The idea of network marketing is you can interact with your customers, and if some of them are helping you make sales, and may be looking for extra income, THEN you can recruit him/her to help you make more sales. You should be picky / choose-y when it comes to who you recruit, which should be a tiny fraction of who you sell to. Clearly, very few people are good at sales, and even fewer knows how t spot such talents.

Yet recruiter type MLMers proliferate because they THRIVE on replication... like Zombies or the Borg. They replicate / network first, market second. Even NM veteran commentator Len Clements (who is pro-MLM) had lamented about why are a lot of MLM training "Bass Ackwards"

And with the Internet, every such "yahoo" has a voice... and it's up to you to figure out whose opinion is based on facts... and whose are based on misinformation and misunderstanding.

And that's why this blog and website exists.
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