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             23 February, 2020
 

    
Category:  Articles » Business » Entrepreneurialism

 

Just One Of Those Pyramids

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2007-01-19 22:18:24     
Article by Joel Sanders

Isn't this just "one of those pyramids?"

Well, let me ask you a question. What's the perception of a pyramid? Most people think of a "pyramid" as this idea that the people at the top make all the money, and the people down below do all the work. Isn't that the perception of a pyramid?

Let me explain why this is NOT a pyramid, and why the people at the top don't necessarily make all the money. First, let me point something out about the perception people at the top make all the money.

In 2005, the CEO's of the largest 500 corporations in America received, on average, 54% pay increase. Now, that is on top of a base salary that is already typically in the millions.

What percentage pay increase do you suppose the people 'down below' in those companies received? 5%? 8%? What percentage pay increase did you receive in 2005?

Terry S. Semel, CEO of Yahoo, received a $204 Million dollar pay increase in 2005. Could anyone else in that company request a $204 Million pay raise? I don't think so. But Terry S. Semel can, because he has people underneath him doing a lot of work. He has incredible leverage that no one else in Yahoo has, or ever will have.

The unfairness in traditional business is that the CEO and his or her inner circle of executives are the only ones with leverage. No one else in those companies has the same opportunity for growth as the CEO.

In fact, in any company, would any of the Vice Presidents earn more money than the President? No. How about a manager or supervisor? Would they earn more money than any of the Vice Presidents? Of course not!

Again, the inherent unfairness in traditional businesses is that the only people who have leverage are the people at the top. How many people do you suppose they step on, push down, or backstab to get there? Corporate politics is truly an ugly mess...

But in network marketing, people "down below" earn more than people above them all the time. Here's one example: Jeff Smith, the first distributor for Usana Health Sciences, has dozens of people in his organization right now who earn more than he does.

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