Is Wealthy Affiliate A Pyramid Scheme?
Is Wealthy Affiliate A Pyramid Scheme?
It’s completely natural to have doubts about online marketing platforms or any platform that makes you money from home as there are many pyramid schemes out there and it’s common misconception that online marketing is ‘too good to be true’.
Firstly, What Is A Pyramid Scheme?
According to Wikipedia ‘A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products. … Some multi-level marketing plans have been classified as pyramid schemes.’
Don’t Get Scammed By Pyramid Schemes
Not only are pyramid schemes illegal, once involved they can be financially devastating. How a pyramid scheme works is quite simple.
See a break down below
- A business model will recruit members by promoting payment through products or services by enrolling other members into the scheme.
- The recruited members will pay an entry fee to join the ‘exclusive company’ the more they pay the more benefits they get.
- Recruits are given products to sell but the main emphasis is to get more people to join the company
- Recruits are paid a commission for every new recruit they bring to the company. The new recruits then recruit new members who pay the entry fee
- The system is designed to benefit the management or early entrants into the company. Therefore gaining the name pyramid scheme
- Eventually the new members, the main source of income to the company, will run out and the entire scheme collapses
- Members at the bottom lose their hefty investments whilst those at the top pocket the money.
How To Spot Pyramid Schemes:
Its always handy to know how to spot a pyramid scheme when looking to earn a living online
- The company will charge high entry fees
- The company’s business model is vague and its source of income is primarily based on recruiting new members
- The ‘products’ sold by the company is the biggest giveaway. They are usually overpriced or have no market or consumer value.
- A legitimate company would discourage sales people from buying too much stock and offer opportunities or refunds for unsold products. Pyramid schemes do the opposite.
- The company would promise you unusually high returns on your investment. The more you invest the higher your returns will be.
Note my last point there (no. 5). Wealthy affiliate firstly, does not PROMISE unusually high returns. What Wealthy Affiliate does PROMISE is with hard work, dedication and successful time management, that you can become successful and wealthy in the world of affiliate marketing. Also you do not have to invest more or in-fact anything into wealthy affiliate if you do not want to.
Furthermore, A pyramid scheme takes some of / nearly all of your profits. Wealthy affiliate takes none of your profits. Your commission is yours to keep!
Although Wealthy Affiliate does offer an optional fixed fee premium membership option to help you grow your business even further, I strongly advise that beginners try the free membership first. This will help you get to grasp with affiliate marketing and open your eyes to great training and benefits that come with wealthy affiliate.
The premium membership is a very reasonable monthly payment of $49 per month or $359 per year. That works out to less than $1 per day for complete access to the platform, support, website, tools, community, and expertise. The price is all-inclusive and includes everything you need to create, grow and scale your businesses to any level online. That has remained the same since the very beginning (15 years ago). Also if you decide to cancel premium membership, it’s as simple as that. Cancel the membership and your payments stop.
You also have complete access to the Wealthy Affiliate founders Kyle and Carson. This is not something a pyramid scheme would do.
Millions Make A High Turnover On Their Affiliate Sales
As you will see once logged into the platform, there are success stories everywhere. Wealthy affiliate provides full training for people to become the very best at affiliate marketing so they train you to earn an honest and fulfilling living. Unlike a pyramid scheme that take all the profits and leave you in the dark financially.
There are no other affiliate companies on the market that offer the chance to study affiliate marketing for free and become an accomplished marketer by following their straightforward step by step training regime
So to conclude and answer the initial question, the answer is no, Wealthy Affiliate is not a pyramid scheme and is a completely legal and legitimate platform that I highly recommend you try for FREE. What’s there to lose? I’ll tell you, nothing.