Network marketing describes the process of leveraging personal relationships to build a customer base. While this term can be accurately applied to most pyramid schemes, where individuals network their existing relationships to accrue human capital, network marketing extends outward beyond the pyramid to include many multi level marketing companies, like YOR Health.
YOR Health is not a pyramid scheme in the strict sense of the term. In fact, it is not a pyramid scheme at all as defined in this article. YOR Health does not pay for the recruitment of human capital. Though there are opportunities for distributors to make money in a “downstream” fashion (i.e., from sponsored distributors), revenues are generated not through recruitment but though sales.
This being said, YOR Health distributors never need to recruit a single person in order to be successful within the organization. Because the product offering stands alone as high quality and effective, distributors who are only interested in retail profits can meet significant success by selling the product to end-users without ever needing to sponsor a new distributor.
Not all network marketing companies can rightfully be labeled as pyramid schemes. It is important to accurately understand the distinction when evaluating this type of organization. A pyramid scheme – in the truest sense of the term – describes an organization through which employee revenue is generated by adding distributors (or recruitment). Or – said in another way – a pyramid scheme describes a scenario wherein an organization does not offer a real product; the only way to make money in this scenario is via the recruitment of human capital.
Network marketing for YOR Health, then, is twofold. First, the organization offers a wide variety of health products for distributors to sell to their personal networks. On top of this, the organization incentivizes distributors to recruit members of the personal network who are motivated and competent. Distributors do not make money by bringing in new distributors, but if they sponsor distributors who are themselves successful at selling product, they earn a percentage of the sale.
This serves to distinguish YOR Health from many other network marketing or multi-level marketing organizations, and is a significant reason why prudence and critical analysis should be applied when examining this type of company. Rather than lumping all MLMs together into one pot, or labeling all of them as pyramid schemes, individuals would be better served treating each on its own merits and determining the relative value independent of the industry as a whole.
