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MLM Training - What To Do If You're Still Getting the "Pyramid" Objection

Mar 15, 2008
A recent survey indicated that one of the most frequent objections network marketers get is the "pyramid objection." 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 a recent MLM training conference call I walked my students 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 shown on this page: brilliantexchange(dot)com/images/mw(dot)jpg 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 on page: brilliantexchange(dot)com/images/m2(dot)jpg.

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 cannot 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 the image on this page: brilliantexchange(dot)com/images/ml(dot)jpg

You don't need to draw three levels to make the point. 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."

Following all the steps as I've outlined them in this MLM training tip help you solve the pyramid objection once and for all.
About the Author
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.brilliantexchange.com/mlmtraining
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