A plea against lazy thinking - and for a fair assessment of an honest industry

"Oh, it's this Ponzi scheme ..."
Anyone who works in network marketing will be familiar with this phrase.
It often comes quickly, in general terms and without any factual background.
The irony? Most people who talk like this have no idea what a Ponzi scheme actually is - and are just parroting what they've heard.

It's time to do away with prejudices, lazy thinking and double standards.
Because network marketing is neither criminal, nor new, nor dubious - but a performance-based sales model that has been tried and tested for decades.
And the problem is not the structures, but the people who use them incorrectly - as in every area of the economy.

What is network marketing really - and what is it not?

Network marketing (NM) - also known as referral marketing or direct selling - means that products or services are not sold via supermarkets, TV commercials or online advertising, but directly from person to person. Sales partners earn through sales and - in some models - also by building a team.

What it is not:

• Not a Ponzi scheme: in a genuine Ponzi scheme, money only flows through the recruitment of new participants, without any real product value. This is illegal - and has nothing to do with NM.

• No rip-offs: Reputable NM companies have transparent remuneration plans, real products with added value, fair entry barriers and rights of return.

• No pyramid game: Even if the structure visually resembles a pyramid - all traditional companies do this too. The question is: who can move up and how?
  In network marketing: everyone - with performance, not with relationships.

What critics ignore: Every company is a pyramid

Anyone who complains about "pyramids" should take a look at traditional companies:

• The CEO sits at the top.

• Management levels below.

• The employees toil away at the bottom.

The only problem is that hardly anyone has the chance to move up or share in the company's profits.
It's different in network marketing: anyone can build something for themselves - regardless of their education or background. Step by step. Performance counts. Not titles.

The biggest joke: the German pension system is the real Ponzi scheme

The oft-cited fear of Ponzi schemes is particularly pronounced in Germany - yet the biggest of them all is run by the state:

• The pension model is based on the logic that the young pay for the old.

• There is no capital cover - but a redistribution that only works as long as new "participants" (employees) pay in.

• If the same standards were applied to the pension system as to NM models, the thing would have been banned long ago.

And yet everyone accepts it without question. Why?
Because it 's state-run. And convenient.

Figures that don't lie - network marketing is a billion-dollar industry

Network marketing is not a marginal phenomenon - it is a stable, growing industry:

Global (2023):

• Turnover worldwide: approx. 172 billion US dollars

• Over 110 million active sales partners

DACH region:

• Germany: USD 19.76 billion turnover, approx. 880,000 partners

• Austria: USD 357 million, approx. 269,000 partners

• Switzerland: USD 431 million, approx. 160,000 partners

And with products that people buy voluntarily and regularly - from nutritional supplements and cosmetics to digital solutions.

The cultural difference: why network marketing is booming in other countries

While alarm bells immediately ring in Germany when it comes to network marketing, things look very different in other parts of the world:

USA

• Network marketing has long been mainstream there.

• Successful distributors are celebrated in business magazines, not despised.

• Companies such as Amway, Herbalife or Monat are gigantic economic players - with professional, ethical structures.

Latin America

• Here, network marketing is a springboard for social advancement.

• People without access to traditional careers use NM to provide for their families - with pride.

• The entrepreneurial spirit is encouraged, not stifled.

Asia

• In countries such as South Korea, Malaysia and Thailand, network marketing is part of the economic culture.

• The values of diligence, discipline and recommendation fit the model perfectly.

• Companies from the region are global leaders in NM innovation and training.

And Germany?

• Skepticism, mistrust and envy dominate here.

• Success is questioned, not admired.

• Those who earn money have to justify themselves - unless they are wearing a suit with the DAX logo.

These cultural differences are no coincidence. They are rooted in a deep German need for security, coupled with a certain fear of the unconventional.
Anything that doesn't conform to the norm is immediately suspected.

Hypocrisy in its purest form: billions for advertising are okay - commissions are "dubious"?

When a company spends millions on TV commercials, social media ads or advertising agencies, nobody cares.
But when a network sales partner receives a commission for a genuine recommendation?
Then people immediately complain: "It's just a rip-off!"

Why?
Because it's suddenly a person - not a company - who is earning money.
And that tends to trigger the envy reflex in Germany.

People are the problem - not the model

Of course there are black sheep in network marketing.
But the problem is not the system, but the people who live it wrong - with false promises, greed or pressure.

But these people are everywhere.

• Bad bosses.

• Dubious financial advisors.

• Fraudulent start-ups.

• Exploitative corporations.

No one would condemn the entire corporate world for this.
So why network marketing?

The fair model of tomorrow: Social. Democratic. Performance-oriented.

Network marketing gives people a real chance:

• Without big business

• Without vitamin B

• With real performance, real product and real responsibility

It does not distribute sales to agencies and advertising departments, but to the people who drive success.
This is the social economy. Not neoliberal - but democratic.

Conclusion: Germany must learn to value performance again

Network marketing is not a promise of salvation. But it is a fair, transparent and humane way to build up an income - on a part-time or full-time basis.
And while the world has long since understood this, Germany continues to sit on its couch and say:
"Surely this is a Ponzi scheme?"

Wrong.
Ignorant.
And a pity.

It's time for a fresh look.
An objective one. An honest one. One that recognizes opportunities - instead of constantly looking for problems.