Find a job - The Pyramid Shape and Commission Tracking Explained

First, let’s address the pyramid shape. To get right into it, the shape is simply a hierarchical structure.

If you draw out your family tree, the organization of the company you work for (CEO at the top, middle management, then employees at the bottom), the government (President at the top, etc), your church, the school you attended (Principal at the top, vice principals, teachers, teacher’s assistants, etc)… you’ll find the same pyramid shape in all of them.

Because of miseducation and a lot of news programs that have covered ponzi schemes (money games), the pyramid drawings have been interpreted as part of something that’s negative or a scam. That is completely inaccurate. Again, just about all hierarchical structures (including the army) have a pyramid shape.

There are indeed money games where a person is asked to put in $6 (chain letters) or $1000 (or whatever the case may be) and then find others who will put in that same amount of money and repeat the process. In this case no product and no value is being exchanged.

It’s simply a group of individuals playing off of the concept of selling hope. Meaning they sell others (illegally) on the idea that they could get rich quick by putting money into this money game (ponzi scheme) and through geometric progression, as they find others, they would start making a lot of money. These schemes are illegal and since the majority lose out (the people at the bottom when the program gets shut down), it’s also immoral.

Do not confuse the above with the word of mouth growth that occurs as customers create more customers in an ethical, legal and fast growth business.

In network marketing, the referral-genealogy diagrams are drawn to illustrate how a customer could start also developing a network of other consumers and therefore earning an income. But in this case the commissions are based on product sales.

The computers (tracking systems) need a way to track who referred who. This is accomplished through the membership (or associate) numbers that are assigned after the appropriate application is filled out. This membership or id number is no different than the customer number you may have with your telephone company, internet service provider and hydro/utilities provider.

When someone that you referred becomes a customer, their customer id (membership number) is linked to yours and the computer knows that as this new person pays for the products or services (and as they generate additional customers), you are to be paid your portion of their purchases as a “referral commission”.

The “pyramid” shape is simply drawn to illustrate the hierarchy of this referral process. It simply provides an image of who referred who (therefore giving you a visual of where the ongoing checks are coming from).