If you are searching for ways to make money online you may have heard of affiliate marketing and possibly BuilderAll Compensation Plan or affiliate program. BuilderAll has one of the best affiliate programs on the market but many people have this question, is Builderall a Pyramid Scheme?
In this post, we will discuss what a pyramid scheme exactly is (so that we surely know what we are talking about), Builderall’s compensation plan, and our main focus will be on finding out if BuilderAll affiliate program is a pyramid scheme or uses Multilevel Marketing(MLM).
Many people fear pyramid schemes and Multi-level Marketing because there are many times in the past that companies who used these tactics were destroyed and many people lost money and they also lost their businesses.
So, before we dive into answering if Builderall is a pyramid scheme, let’s find out exactly what a pyramid scheme looks like and if you should become involved in pyramid schemes.
What Is A Pyramid Scheme In Online Marketing?
In simple terms, a pyramid scheme is a business model that recruits new members that pay for the existing members with the promise that they will also get paid when they recruit new members, and so on.
The vast majority of these schemes are not promoting or selling a high-quality product or service and they mainly rely on fees from the new recruits.
How does the pyramid scheme work?
The pyramid works fine when new members that join the pyramid are far more than people above them on the pyramid. For example, on the top of the pyramid there can be 1 person then below him there are 10 people on tier 2, then on tier 3 there can be 50 people, then on tier 4, there can be 100 people and so on.
Those people pay for the people above them.
However, when the economy is going down, it is possible that newer people will be less than in the tier above them. In simple words, when the pyramid shrinks, it gets destroyed. It is a matter of time for a pyramid to be destroyed because it is impossible to widen the lowest tier of the pyramid forever, right?
I hope it makes sense.
And when that is done people are losing money.
Now, I want to make a distinction here. MLM is not illegal. Multi-level marketing involves products and sales. This is a little bit different than traditional pyramid schemes. MLM is a business model that can work. Some companies, though, fake selling expensive products like courses, etc. These companies can also get destroyed and people may lose their money.
But, in general, Multi-level Marketing is not a scam or a pyramid scheme by definition. It can become during the process but it is not from the very beginning.
Now, that we understood the pyramid schemes let’s go back to Builderall.
I will now make a really quick reference on BuilderAll’s features because it is very important to understand what it offers. Pyramid schemes do not offer products or services. BuilderAll has 32 features, of course, I won’t analyze everything because this is not the point of this article.
If you wanna learn more about BuilderAll, feel free to check out my BuilderAll review.
BuilderAll main features are:
- Sales Funnel Creation
- Website Creation (WordPress Installation)
- Email Marketing with their own email autoresponder
- Chatbots(website and messenger)
- On-Page SEO tool
- Video Editors and Design Editors
- Browser Notifications
- App Creator
- Script Generator
And many more…
This is not an article to talk about Builderall and how good it is but I have to show you that this platform does a lot and I mean a lot of things. It is a very important factor when you want to make sure if something is a pyramid scheme or not. If it has endless valuable products and features, refund policy, great reviews, etc there is no possibility that this can scam anyone.
Builderall Compensation Plan
First of all, Builderall is an all-in-one software that helps online marketers create and grow a successful online business. It helps people create amazing sales funnels, WordPress websites, landing pages, do email marketing, and much much more.
Like any other product online, BuilderAll has an affiliate program( Compensation Plan).
They give you a 100% commission for your first referral and then 30% of what they pay monthly. They have 5 pricing plans so this amount of money can go really high, despite the fact that Builderall is very cheap.
If your referral becomes an affiliate marketer and specifically for Builderall and brings new referrals, you will also get a 30% commission on those as well and he will also get 30%. (For the first sale, he will get 100% of the money and you 0% as you did on his tier 1 referral but from then on you will both take 30% every time the customer pays BuilderAll.
Related Post: BuilderAll Compensation Plan
Does this seem similar to a pyramid scheme? Of course, no!
BuilderAll just gives incentives to people to bring new customers. They sell a very reliable funnel builder software and much more in their packages. Many companies do that to acquire more customers and it is totally understandable from a marketer’s perspective to give affiliate marketers incentives to promote you.
The pyramid schemes would make more tiers and tell you to bring customers in order to get this money without giving anything or without doing anything and that’s why they crush. Because people stop paying. In BuilderAll’s or any other similar company’s situation, the company promotes itself instead of paying ads for example, with affiliates that do the job, and they only get paid if they bring a customer.
Why BuilderAll Is Not A Pyramid Scheme
BuilderAll is not a pyramid scheme. This is 100% sure. I have been doing this job for years. You can always check out in other places for the definition of pyramid schemes but one thing is undeniable. Builderall is legit.
In pyramid schemes:
- There would not be a product.
- Commissions in pyramid schemes are not paid immediately after 1 sale as it happens in these kinds of software like Builderall, Clickfunnels, Leadpages, etc.
- Pyramid schemes do not return money back. Legit platforms always have a refund policy.
- The products should also have a market value. For example, Builderall is a funnel builder software, website creator, email marketing tool, etc. Clickfunnels is a sales funnels builder, etc.
I hope you can distinguish the differences, now.
BuilderAll is a very solid platform and in my opinion the best all-around budget option for internet marketing. If you have much money feel free to pay Clickfunnels, Getresponse, Leadpages, Kajabi, and more to have the same things that BuilderAll provides.
But, if you don’t wanna break the bank, feel free to test BuilderAll. It is pretty legit.
Pyramid schemes are unstainable business models that have repeatedly crushed in the past. Many people have lost money during that process. These schemes promise that you will pay a fee to get in and then other people that you will bring in will pay for you and make you rich.
But, money goes to the top tiers of the pyramid, and when people realize it, and the bottom of the pyramid shrinks then people lose money and the pyramid is destroyed. That’s why in many countries pyramid schemes are illegal.
In order to distinguish pyramid schemes from MLMs, you may have to be experienced but you can easily understand that companies that just promote themselves through affiliate marketing are not scams.
Even Amazon has Amazon Associates which is their affiliate program and people promote Amazon. That does not mean that Amazon has a pyramid scheme or anything like that.
It is pretty easy to understand.
BuilderAll has tier 1 and tier 2 affiliates and that’s the reason why people ask if it a pyramid scheme. The tier 2 affiliate option incentivize tier 1 affiliate to teach the tier 2 affiliates affiliate marketing using Builderall so that tier 2 affiliates bring more affiliates and both of them get paid.
Builderall is an all-in-one tool that lets you do everything online businesses need. It has 32 features, cheap pricing, refund policy, great reviews, etc that show even to those that are really skeptical that it is very legit.
You can get Builderall 30 day free trial to check it for yourself and form your own opinion, here.
There is no one on the internet that will tell you that Builderall is a pyramid scheme because it has tier 1 and tier 2 affiliates. Kartra has also the same thing and many other companies have tier 2 affiliate options just to incentivize people to promote their services.
That’s it for today’s topic. I really hope to have answered your question adequately because I tried my best.
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