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Pyramid scheme is when the top people make money off people who enroll and invest into the pyramid. It is when a company make more money from enrolling people than it does from actually selling products. All MLM have a pyramid scheme to an extent. It is not about my boss making more because I sold more that happens in all companies, but in a job I do not get paid when someone joins the company and neither does my boss.
There are some legitimate MLMs out there (Primerica is a decent example), but most are useless and more focused about getting people in then selling a product.
I deal with this a lot. Friends constantly trying me to buy their essential oils/vitamins/supplements. When I say I can't afford it they usually try to convince me that if I stopped seeing my doctors and instead bought their products that I wouldnt have medical expenses (LOL)... It's so funny because I have seen a couple friends become beach body coaches.. Making meal plans and "helping people get healthy" and yet they have NO medical background, NO licensure/certification, no training in dietetics/nutrition... The qualifications are: do you have a social security number? Over the age of 18? Great! Sell _____ [young living, shakeology, etc] .. So ridiculous!
I give a stern "no thanks, I'm not interested" and then give a piece of mind if they push it further. Sometimes it's quite funny, because depending on the friend/type of person they'll sit there with all of the rebuttals that they're taught in their sales training class ...and other times they get offended. One friend didn't talk to me for a couple years.. Then when her Mary Kay venture stopped being successful she quit and called me to apologize for yelling at me when I would not blow $$ on her crappy makeup lol
People who use other people to increase their monetary status are not friends. Just say no. If they keep on about it, change the subject or get away from them. Real friends don't munch off you.
Business is business and I do not like to do business with friends. I have veered from this a couple of times and regretted it.
You get to a point where you just have to flat out say your not interested, not something you need based on your budget, ect.
To me, it would be easy as I would be upfront and honest. I had a friend who was selling jewelry(like Avon, getting commission or whatever) and I told her, there's no way I'd be interested based on price and it's not something I need. She also wanted me to attend parties, but I never did. Stuff was way overpriced!
I'd never buy out of guilt, that's not good for you or her. Just be honest.
I'm in the network marketing industry and let me say I get pitched too. Here's my take. Not all things are for all people. Just say no thanks but consider this. Anyone working a job has no guarantee to always have that job or if let go when and if they can find something comparable which is why people should have a part-time business.
For those who yell pyramid please define what is a pyramid scheme. If it's about different levels of earnings I'm pretty sure your boss earns more than you and so on up the ladder. Sure friends and family may be trying to sell you on their products or business but here's is something to consider. In the big picture none of us is that important. No matter how many people say no there are people who say yes.
Everyday people are starting or are deep in the 40/40/40 plan. Work 40 years, 40 or more hours a week, to retire on about 40% of their income. So just say no. Some will say yes. Some will, some won't, so what. Next. If your not interested just say no.
A pyramid scheme can be defined by several methods, but by far the largest is the ratio of internal consumption to outside selling. And while many MLMs to not pay based strictly on recruiting, they all pay a commission based on the sales made to these new recruits. A few other methods used to extract cash from their own people, in addition to any sign-up fees, is by charging for marketing/training materials, online access subscriptions, seminars, conferences and conventions. The sale to a new recruit is the easiest sale of all. They purchase to thank those that introduced them to the dream, and as a way of proving loyalty and a willingness to follow "the winning system" or to "test drive" the product. Because this internal selling is the easiest, the focus soon shifts to recruiting rather than selling to the public.
Google the "Annual Income Disclosure Statement" of any MLM you think that doesn't apply to and lets have an open discussion about it.
This.
I've looked at tons of these income disclosure statements, the numbers are always dismal.
For example, World Ventures MLM: 80% of their reps earned under $500 in one year. How pathetic is that. They could have worked a couple of weeks at Taco Bell and made that.
The problem is that some many of MLM people have zero boundaries.
My wife's sister-in-law sells Arbonne. She has basically interrupted dinner parties at our house to give her spiel. Once when I was traveling overseas on business, she honestly wanted me to hit up my professional contacts in that country to see if they wanted to peddle the stuff. Her FB feed is all Arbonne all the time.
Mind you, my wife's SIL is a sweetheart in so many ways and she's done a good job building her biz. But There comes a point where you simply don't flog your friends and family any more.
Real estate agents, by the way, fit neatly into the same dynamic. All three times we moved, we either had a family member or a family friend be our realtor out of some sense of obligation. I will never do that again.
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.. So ridiculous! 
...and other times they get offended. One friend didn't talk to me for a couple years.. Then when her Mary Kay venture stopped being successful she quit and called me to apologize for yelling at me when I would not blow $$ on her crappy makeup lol
