Now that I’m working with Rolution to I received the same question/response. I’ve looked into this and I found the following explanation. Network marketing is NOT a pyramid scheme because it has a product. GDI has the .ws domain name and the website builder and Rolution has the Vault and also the possibility to build a website. A pyramid scheme doesn’t have anything, you’re just asked to put in money and together you’ll find more people who are willing to do that. The problem is that when people decide to step out and take their share the pyramid collapses and a lot of people lose their money.
A pyramid scheme is illegal in a lot of countries. There’s no legit company behind it. With network marketing there is a legitimate company behind the product. You can contact the company by email and by phone and they are registered as a real, legitimate business. So before joining a network marketing company check if they are registered and check the company’s history.
I get this response a lot when I tell people about network marketing. For some reason one of the negative things about MLM is that people think it’s a pyramid scheme. Why? I don’t know but I hear it very often. Now that you know the difference you can explain to people right away that your Rolution or GDI business opportunity is not a pyramid scheme. Believe me, if you can’t tell them this right away, your story isn’t interesting anymore.