Tuesday, July 26, 2011

A Pyramid of Nothingness

Okay, so let's have a conversation about residuals in pyramid schemes. I have been approached TOO many times, usually in the same setting (bookstore) by people who see that I'm looking at books in the business section and want to provide a "money-making opportunity"(pyramid scheme by most standards but some are legit) for me. I usually don't turn down a conversation because you never know who you may be talking to, so I try not to be rude. But they always pitch me the same type of idea. They tell you only about 5 minutes about how they do it (they know that if you have any knowledge that any longer than that you'll be running), get your number or email, set up a meeting then give you a little more info, then ask for a small (usually $500 or more) start up fee.

Now...The only way that these "businesses" work is that you have to convince more people to be a part of your team. The more people on your team, the more residuals you make and eventually end up at the big EVENT with the BIG DOGS of the company.

I'm not saying that this doesn't work because I have had a few friends of mine approach me with the same business and some of them do make some money. I just know that it is NOT for me. If I was going to give someone $500 or more to get started on something that I know I could come up with myself, why would I give in? I'd rather invest in my financial and entrepreneurial education, which might take a little longer, but in the long run would benefit me a lot more.

Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime- Chinese Proverb. I think some of these companies "give you the fish" instead of teaching you how to fish, building a system around it and teaching others to fish to benefit themselves AND you (in the form of profit of course). Learning how to create passive income is something that I want to strive for to build wealth so that I can do other things that I think I'm supposed to do on this planet. I don't want to spend my time trying to get people to sign up for something I don't even believe in. 

At the end of the day you do the research and make your own decision. It's up to you!