If You’re Still Getting the Pyramid Objection…
Last week I sent a survey out and one of the questions was, “In presenting MLM, what two objections do you most often get?”
Your answers have been very informative. They tell me so much about what’s going on in your business. One of the main objections most are still getting is the “pyramid” objection.
Even though I’ve handled this objection before in the newsletter, I want to handle it again in a different way in the article below. Here’s an incredibly brilliant MLM training tip that teaches you how to explain MLM without raising any red flags in the prospect’s mind.
On the MLM training conference call next week, I will walk you through the specific steps of what you say and what you do with prospects to overcome the pyramid objection, but I want to give you the basics here of another way to explain MLM.
To start with, if you’re doing a one-on-one where you’re actually with the prospect as opposed to talking with them over the phone, then you will want to draw for them what I’m going to show you here. If you’re on the phone, start by sending them Brilliant Compensation Online and then have this discussion with them over the phone while asking them to draw it while you walk them through it.
When/if the pyramid objection comes up, ask them to think about a typical business where there is a sales rep and a sales manager. Draw the picture below showing ONLY one sales manager (the man in blue) with sales reps working for him. Make sure you make the statement, “The manager is only valuable to the sales reps if they have experience selling what they’re asking the sales reps to sell.” Then ask, “Does this make sense to you?” Or “Do you agree with this?” It’s very important to get them involved in this discussion.
Once they are involved with the discussion, I normally probe a little with “Does the sales manager normally make a little more money than the sales reps?” Which most people will answer “yes”. I then ask, “Is what I’ve just drawn a pyramid because sales reps work under a sales manager? Is it a pyramid because the sales manager makes a commission off what the sales reps sell? “This is where the discussion normally opens up. Try to keep them on just answering what has been discussed up to this point. Meaning, if they try to take it further and ask or say something else, reply with, “We’ll get to that…right now just tell me if this is a pyramid.” After that is settled, then move on.Ask them, “What happens when there are more sales reps than the manager can handle?” What you’re facilitating them to answer is, “The company needs to hire another sales manager.” Then you can say, “Good! Where can the company get this new sales manager from?” You are trying to guide the prospect to see that either the company can hire a new person from Monster(dot)com (or wherever) or they can take one of the existing sales reps and make them a manager.
Guide them towards seeing that the better way would be to take an existing sales rep and make them a manager because they are already knowledgeable on how to sell that product. If they were to hire a new person they would have to educate that person on the products and the way the company operates. But, that new person wouldn’t have the respect of the sales force because “He’s never done it!
“But if they take an existing sales rep and make them a manager – they would know the product, know the way the business and company operates and would have the respect of the sales reps. But regardless of which place the company chooses to get this new manager, you’ve now added a new manager. Now draw another manager (beside and to the right of the man in blue) with sales reps below her – just like the image below.
Then ask, “This is the way that most companies grow their sales force. Does this make sense?” Get their agreement.Then label the top of the picture “Multi-Width-Marketing.” Then say, “Multi means more than one. Width means that it grows laterally and marketing means that they are all marketing the product. Make sense? Any questions on this?”Once all of this is settled in their mind – then move forward. DO NOT MOVE FORWARD UNTIL THEY UNDERSTAND UP TO THIS POINT. There can not be any confusion AT ALL. Then say, “Let’s just take the same picture and draw it a little differently”. Circle the man in blue and his sales reps and say, “I’m going to draw this sales manager again.” Draw it on your paper. Then say, “Instead of hiring a new manager from Monster(dot)com we’re going to take a person who already knows the product, the company and the business and make them our new sales manager. Since it will be one of these sales reps, I’m just going to keep the drawing the same by drawing a new sales rep under them.” Draw it like this image:
You don’t need to draw 3 levels to make the point. So just draw two levels to begin with. Then, label level 1 and level 2. Then write at the top “Multi-level Marketing and say, “Multi meaning more than one, level meaning growing vertically and marketing meaning that everyone is marketing the product.” This should give you the basics of how to handle this objection once and for all. DO NOT MISS NEXT WEEKS’ CONFERENCE CALL. I will go into depth on this as well as give you the most important points to make early in the conversation so that if they claim it’s a pyramid later – you can take them back to what they already said. For those of you who’ve never quite understood the concept of how to “facilitate” handling an objection – on this conference call you will hear me doing it fully.
Following all the steps as I’ve outlined them in this MLM training tip help you solve the pyramid objection once and for all.
Much Respect and Admiration,
Tim Sales
Tim Sales helps network marketers gain the skills necessary to be successful in MLM. His MLM training is based on his personal success of building a downline of 56,000 people. Instantly access Tim’s free MLM training and learn the steps to achieve success at www.firstclassmlmtools.com/MLM-Training-W13.aspx.
December 18th, 2007 at 5:21 pm
Hi Tim,
“One of the main objections most are still getting is the “pyramid
objection.”
It is still mind boggling to get this type of objection – even for people who do direct sales! I must have MLM etched on my head. I have a direct sales product which has a rebate offer so that people who introduce others to the product get progressively higher rebates as they introduce more people – to the point that when they introduce 10 people, they would have gotten theirs for FREE!
When I explain this rebate system, I get the “pyramid” objection.
I have had some success handling this objection by leading the objector (for a lack of a better word for a prospect who raised the objection) – to a large corporation. If they have worked for one large corporation, they always would be able to relate to the President on top, then layers of VP’s, Directors, Managers, Supervisors, then all the subordinates. I also point out how the money is distributed in the corporate ranks.
If the prospect does not have any corporate experience, I try the armed forces route (generals, colonels, etc.) or other structure like churches, schools, and hospitals. Sooner or later, the prospect has to relate to one.
Thanks for illustrating your approach. I will use that one the next time.
Sincerely,
Adrian
December 26th, 2007 at 12:48 pm
Excellent training. Thankfully I do not get this question much any more but it helps reenforce what I have used in the past.
December 26th, 2007 at 1:40 pm
You explain this so logically. Thanks so very much.
December 26th, 2007 at 3:17 pm
Your explanation is very clear to me now. Thankyou so much
December 26th, 2007 at 3:20 pm
This training was very valuable, great way to lead the prospect to repond themselves what a pyramid scheme is.
December 26th, 2007 at 3:45 pm
Thanks for this great explanation. It has really opened my own mind about how businesses and structures are levels. Thank you for all your help.
Susan
December 26th, 2007 at 4:30 pm
Awesome information…Thank you:)
December 26th, 2007 at 9:42 pm
Awesome, this states clearly how to handle pyramid. Thanx Tim for being so clear to the point.
Habib
December 27th, 2007 at 4:31 am
Its a wonderful information and I never thought it was so easily handled. I am amazed by this answer on pyramid. Thank you so much
December 27th, 2007 at 7:23 am
I did not realize that there was so much ado about the pyramid objection but your explanation was very informative. thanks
Jim
December 27th, 2007 at 5:04 pm
Tim your responses are right on and very helpful for us all. Thank you for all you do and have a wonderful holiday season!
December 27th, 2007 at 8:45 pm
tim, you are a gem. thanks for all of your great trainings. keep up the awesome work.
jumpin’ joe
new york city
December 28th, 2007 at 2:40 pm
Tim you have motivated me to take my business to another level. Your info is priceless and keep up the good work.
December 28th, 2007 at 3:21 pm
Hi Tim,
Thank you for this simple explanation. I know it will help when I come up against this in the future.
December 28th, 2007 at 5:43 pm
I will cherish this explanation. Thanks Tim for caring enough to share your knowledge.
CedReynolds.com
December 31st, 2007 at 8:52 pm
We feel that this training on how to handle the pyramid objection will assist us and our team greatly. Great Job! Thank you!!
January 1st, 2008 at 7:36 pm
When I first heard you speak last year at the Usana conference — I thought “you are brilliant”! Thank you.
January 1st, 2008 at 11:17 pm
tim, the explanation was a big help and i do really appreciate it. thank you so much for imparting your knowledge with us.
January 3rd, 2008 at 3:22 am
Tim this was an absolute awesome training call on how to handle the “Pyramid” objection. I thank God for your wisdom and patience to teach the industry of MLM and Network Marketing. I’m so greatful to have stumbld upon your website. God bless you and I can’t wait until the next call. Merry Christmas
January 9th, 2008 at 12:32 am
Thanks for this simple explanation.Will help me a lot.
January 9th, 2008 at 10:17 am
This is my first introduction to MLM . As of may of last year .It has been slow but I’m learning as I go . This will be the help I need to get passed all the bumps in the road. I’m a visual learner so this way of teaching was just what I needed ,I can do it! Thank’s so much. Debi
January 9th, 2008 at 10:20 am
This is just what I needed, thanks so much. Debi
January 9th, 2008 at 6:59 pm
Tim, I had a prospect respond to me like this:
One of the big differences between the car salesman example and MLM is that the car salesmen/managers are not buying the cars! They are selling the product to outside customers. Once you require those car salesmen to purchase the cars themselves to get paid their commission, the whole thing changes.
So, Tim, how do I contrast the differeces…what ARE the characteristics of an actual pyramid?
January 9th, 2008 at 8:43 pm
I do not have much of this type of objection anymore, but my business partners have. This info very valuble for their training.
Thank you so much!
January 16th, 2008 at 11:48 pm
Hi Tim,
Although I have not used the term “Multi-Width-Marketing
yet, I think it is a great way to explain the “branch office” aspect of building a downline marketing network.
I like to frame the conversation with these words to clarify the “pyramid” issue,
“Think of Network Marketing, or a downline marketing network, as opening ‘branch offices’ with people you DO KNOW who also open their ‘branch offices’ with people you DO NOT know.”
This is network marketing leverage!
Your “residual income” comes from sales made by people you do not know!
To me, that’s VERY EASY to comprehend.
Sometimes it helps, sometimes it doesn’t. So what. It’s not my issue, so I leave it where I heard it, and move on.
If SIMPLE doesn’t help to move the conversation forward…
Or, as you said in your January 2008 newsletter that I just read today,
(my first in my email… although, before I signed up to receive your newsletter, I read all 75 of your previous newsletters and all of the FirstClassMLM.com articles that I heard about on the audio)
“Ultimately where are we headed?
Training.
You’re paid in this industry for being great at training – not recruiting and not presenting.
If I have 100,000 people in my downline and I personally brought in 1000 of them … that means that I brought in 1% of my downline.
Are you starting to get the impact of what good training means, versus good recruiting?”
It is in this context that I wrote, “If SIMPLE doesn’t help to move the conversation forward…” then I’m talking to the wrong person.
We remain as friends, but we do not discuss what they “think” they know is wrong with mlm, since they do not want to discuss what I “know” is accurate about mlm.
Especially after reading your “gold dust” free info. I can just imagine (that’s a nice word, isn’t it?) how much I will “know” after digesting your “gold nugget” paid info.
Thanks for an inspiring first email (+75, I think).
Also, I am finalizing a web site on which the online “Brilliant Compensation” and “What the Poor, Middle Class and Wealthy Buy on Payday” videos will be promoted.
PS. After Amway/Quixtar and then, one more time, Skybiz in 1999/2000, I have only been back in the BUSINESS of network marketing for less than 1 year, so my “info” need is high and I’m ready to soak it all in like a sponge.
Thanks again,
Art
January 17th, 2008 at 11:53 pm
Tim,
Well done.
Broken down to the simplest terms, of what is considered a tradtional business model
July 21st, 2009 at 2:49 pm
Very useful information
July 23rd, 2009 at 5:55 pm
Very useful information. I think it is useful for many people. Thank you for your blogs.
March 12th, 2010 at 3:45 am
Your article some nice! Keep up the amazing work!