Friday, July 2, 2010

One man's idea of "pyramid scheme"

Take a look at this:

"And if this person actually gets their license and sells insurance, you, your immediate supervisor/mentor, the owner of the business, his boss, the regional manager, and so on up the ladder will get a piece of the commission. Hence the appearance of pyramid scheme." from "Mr.Prefect" from Yahoo Answers

This guy obviously has no clue what he is talking about. I've been in the business for years. When I make a sale, no one gets a piece of my commission. I get paid whatever my level is at and everyone else above me gets paid an override. An override to me is money earn when someone else does work. Hence, not an appearance of a pyramid scheme, but an appearance of a working business. You got to be crazy if you don't like overrides. If no one was getting overrides, there will be no point of recruiting. All business are structure this way, even in the corporate world. In corporate world, the CEO makes all the money. The entry-level employee gets paid very little and yet they do all the work. CEO earns all the profits from the work the employees does, which is one big override. Imagine that the CEO was not earning any overrides from the entry-level employee. Then the CEO wouldn't need employees and do all the work by himself. Eventually the CEO will either max out his time or burn out from all the hard work. Then the entire business will fall.

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