The Truth About the “Pyramid Scheme”

pyramid scheme corina davis

We’ve all heard the term “pyramid scheme” and steer far away, rightfully so. Pyramid schemes are just that, schemes. And they’re illegal. But most of the companies around today, like Beautycounter, are true businesses. They offer an opportunity for women and men to build their own business at home. They offer a way for single parents to bring in extra income for their kids. They offer a way for a mom or dad to be able to stay home and raise their kids instead of sitting in an office all day and night, not being able to watch their little ones grow up.

Most of these home-based businesses you see advertised are mothers who have taken a risk to be Entrepreneurs. They want to take control of their own lives, and have the freedom that they may not have if they work a 9 to 5 job.

And the most surprising part of it all, these types of business actually work.

There’s no pyramid scheme because pyramid schemes are actually illegal. What many companies are called are MLMs (multi-level marketing), which are set up in such a way for small business owners to become successful.

If you think about it, every business has a pyramid—be it Facebook, Wall Street, Vogue, etc. These traditional corporations have supervisors, managers, bosses, CEOs and owners.

And just like with any business, the CEOs and managers are all depending on their team members to work hard so that the company doesn’t plummet. And those workers are doing what they can to be the best in order to be successful, and even get a promotion.

When you see these small businesses owners share their success on social media, promoting their products and offering others the same opportunity to join, is this a “pyramid scheme”? If they like their job, they share it, right? Just like you share your favorite go-to Thai restaurant with your friends, or that new boutique that just opened up around the corner.

If you agree, then all of us are part of a “pyramid scheme”.

small business owner
(Image source)

When you buy from these small business owners, you’re not contributing to some millionaire CEO’s bank account. When you purchase from these mom Entrepreneurs, your helping out a family pay their bills, buy necessities for their kids, and even help a parent take care of a hospital bill.

These parents are staying up late at night, planning, executing, selling, marketing, and doing everything they need to do in order to make money. They are hustlers, and to think they are anything less or to put a “pyramid scheme” label on what they are doing and all of their hard work, is upsetting.

If at any time a business like Beautycounter sparks your interest, give it a shot. Let that mom or dad prove you wrong. The MLM business is a legitimate business, and the opportunities are truly unlimited.