Lately many friends, and others, have asked me if this Empower Network thing is one of those pyramid schemes. Sometimes the question comes, not as a question, but in the form of affirmation. “Ah, this is one of those pyramids.”
So I decided to clear things up a bit, and so I don’t explain it one person at a time, also for the benefit of many who are interested in this matter that will never cross my way, so they wouldn’t have the opportunity to ask me any questions or make any claims, I decided, as I was saying, to write a clarification on this subject.
So, if they are not the same, are they so different?
They are radically different, even though, they can use a similar outfit. Let’s see this similarity that covers a very different reality:
This garment is called “invitation”. In both cases, the Empower Network or any other multilevel business and pyramids, the pursuit of the activity is based on an invitation. Someone who is “inside” invites another person, who is “outside” in an attempt to make them “get in”. This “guest” will in turn invite others, in a chain of invites. This results in an activity that aims at achieving capital. This capital is due to the person who invited, in a certain percentage, this percentage also extends to people in turn invited by the first guest. Right?
It’s easy enough to understand that, theoreticaly, there is a potential here for unlimited gains, both in multilevel and pyramid. I spoke of the “invitation” and the compensation chain, and the similarities end here.
Let us now turn to the differences.
In a pyramid scheme, an individual pays a certain amount to “get in”, and from that amount is withdrawn dividends for the chain of “inviters” above. There isn’t any creation of wealth, not through the sale of products or services, nor for financial investment that will bring dividends, for example, nor the valorization of currency or pieces of art. It’s very clear: someone puts thousand of euros in the system and expects to receive 10 or 20 or 50 thousand € within a certain time, if enough people are recruited. Imagine for example that the profit ratio is 1 to 10 (of 1000€ invested the participant will receive 10.000 €). This only means that, for this participant to receive this money, 10 other participants will receive nothing, or lose money. And the whole system of participation has this assumption. 100 people earn 10 times more money than they invested… there has to be one thousand (1,000) other participants losing all their money. Right?
In a pyramid, who pays the dividends are the losing participants. When will the game end? When participants get tired of trying to attract new participants and give up, thus losing the money. In that moment the whole system collapses because it can only pay if there are new participants.
Basic rule of the of the Pyramid Game: ” FOR ME TO WIN… MANY HAVE TO LOSE”.
Interesting, right? One friend of mine, one of these days invited me to a scheme of this kind… I even asked her if she was really my friend because I believe that a friend does not invite another hoping he loses money or arranges someone else to lose money too.
Needless to say, this kind of system is illegal in almost all Western countries (I’m not sure if it’s all of them), yet, the greed of quick profit overlaps the law and friendships and family ties, reason which outbreaks of this type arise from time to time, that quickly gathers a legion of followers more or less greedy, but, definitely losers, excluding one or another who manage to keep other people’s money.
Multilevel on the other hand, is a form of distribution of goods (products or services) and of revenues derived from the sale of these goods. Have you detected the fundamental difference? In multilevel there is creation of wealth. The difference in value between the purchase and sale of goods generates revenue that will pay all the dividends on every level of sponsorship (of “inviters”).
Let me explain: A participant invites another. And he has to do two jobs: use some kind of product or service (that is sold through multilevel) and recommend it to others in hopes that they will become consumers / users of those goods, on one hand, and on the other to teach new participants to do exactly the same thing. This movement of goods generates a revenue for the main company that is used to pay the comissions up through the chain.
When does it collapse? Never, as long as there are consumers / users. If a particular participant ceases to be a customer for any reason, it fails to make money in sales, but they may possibly still earn commissions from their distribution network.
What is your role in this distribution chain (of “invited participants”)? Help them earn as much as possible and help them teach others also to earn as much as possible, because, since the revenues come from the volume of the participants’ business, the greater this volume the more money is earned by the chain of “inviters”. Thus it creates a relationship of “win-win” unsurpassed in its effectiveness in any line of work.
Then, what is the secret, the golden rule in the Empower Network and Multilevel? “FOR ME TO WIN… MANY HAVE TO WIN.”
Noticed the fundamental difference?
- If you want to know my opinion… abject pyramids because they are based on the logic of many traditional businesses, “the most for me”.
- On the other hand I love multilevel because it’s based on a sense of independence but also of assistance: “if you earn a lot I also earn a lot.”
They’re different paradigms… just a little…