What Do You Say When Asked “Is This A Pyramid Scheme?”

Is this a pyramid scheme?

Today I was going to make a video about a question I would hear years ago during presentations on my MLM business.

The question was, “Is this a pyramid scheme?” I gave up on replying that yes, MLM is a legal business and yes, you will always find some companies that are scams in whatever business model they choose to use.

Then I settled on this. The following is somewhat typical.

  • Me: “So, do you have a job?”
  • Person: “Yes, I do.”
  • Me: “And do you have a supervisor or a boss.”
  • Person: “Yes I have a boss”.
  • Me: “And does that supervisor also have a boss and so on?”
  • Person: “Yes.”
  • Me: “Then that sounds like a pyramid scheme”.

In my search for ideas I came across this brilliant little video. I couldn’t stop laughing.

Pat Petrini you have done a first class job with this video and I admit I couldn’t improve on it. I also want to thank you also for introducing me to Xtranormal, the service you used to create the vid. I will be using it in the future.

PS Don’t join any pyramid schemes.

I gratefully accept your comments and feedback.




May there be peace in our hearts.

May there be peace for all humanity.

May there be perfect peace on earth.



About Dev Khalsa

Welcome my friend! My name is Dev Sarang Khalsa and I am a visionary scientist, yogi, master kinesiologist and entrepreneur. I have a passion for following the path of the heart.


  1. Hi Dev, I used to get asked this quite a lot a couple of years ago, however these days I’m finding that people are a lot more open. If I still get the question of pyramid scheme, I quite often ask them “What do you understand by a pyramid scheme” – because you’d be surprised by what someone may actually perceive it to be. Often they say “this thing where someone at the top makes all the money”, or “this illegal thing” or “scam”. Very few will relate it to MLM, most don’t even know the difference. Most important – we are here to educate, not complicate or convince. You will find some people are not prepared to listen and you need to let them go. For the ones that are, here’s what I do.

    Once I’m clear where there understanding is, I explain what makes something an “illegal” pyramid scheme: 1) No product exchanging hands (based on just signing up people and making money on memberships), 2) the person at the top always makes more money than the person at the bottom (based on early positioning).

    More often than not I will do what you do and share examples of how pretty much everything in life revolves around a hierarchy or pyramid (ie. governments, companies, families, schools, the army, etc, etc, etc. and there’s nothing wrong with that). Its when it becomes illegal that you need to look out for.

    Then I will let them know that MLM is a certified, legitimate form of marketing designed to reward any individual who is prepared to market their products to the public (not limited to family and friends as most believe). Its a direct distribution model that cuts out the middle man and pays the distributor for doing the work. Its such a good model because there’s no high upfront costs, no staff, overheads and one can choos how, when and to whom to distribute to. Also, if the payplan is designed well, the individual who works hard can make more money than the person who introduced them in the beginning.

    Good examples of successful business people endorsing MLM are Richard Branson, Warren Buffet, Donald Trump. If its good enough for them, then its good enough for me!

    Then I would introduce them to the benefits of my company, products and payplan and put it all in place.

    Hope this helps.

    PS – If anyone would like to get in touch with me on a personal level, I run a successful MLM business with my partner Liza and we’re always looking for bright individuals who want to make it in this industry. I love MLM – its provided us with a great income, got me out of my corporate job of 12 years and now I can spend quality time at home, travel and enjoy a better lifestyle, most importantly without the stress.

    PPS – In MLM, there’s room at the top for anyone who wantst to get there!

  2. Too funny. Good answers though. I think everyone who does MLM faces this person.

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