In a pitch right now? Words you can use →

Recruiting phrase

What if an MLM pitch says it is not a pyramid scheme?

Also heard as: is it a pyramid scheme · this is not a pyramid · are MLMs pyramid schemes · legal not a pyramid

If you are being pressured right now: You can pause the conversation without debating the opportunity. Ask for written documents, take time away from the pitch, and decide later.

What to do next:

  • Skip the label debate and ask how compensation is actually earned.
  • Ask what share of pay comes from customers who are not participants.
  • Ask what typical participants keep after expenses.

What the phrase usually means

The phrase may be used to reassure a prospective participant that the opportunity is legitimate.

The useful next step is to review the compensation plan, income disclosure, expense expectations, and customer-sales information.

Why it matters before joining

A label does not answer how a specific opportunity works for typical participants.

Written information is more useful than a verbal reassurance when money, purchases, recruiting, or relationships are involved.

Questions to ask in writing

Documents to request with your questions:

  • The current income disclosure or earnings statement.
  • The compensation plan or business plan.
  • A full first-year and recurring expense list.
  • The refund, cancellation, subscription, and inventory return rules.

You can ask to read these away from the pitch before paying, ordering product, joining a subscription, attending a paid event, or contacting friends.

What this does not prove

The phrase does not decide anything about the opportunity. It is a reason to return to written disclosures and public sources.

Related questions

Helpful next pages

Sources