Great question, or is it?  This is one of the typical quesitons that get asked at one time or another when you own a home-based business.  I can answer it by giving you practical information to think about.  This is one of those questions that people ask and if they just thought about it for a minute could figure it out (the anwser) on their own.

So, Does the guy at the top make all the money?  In simple terms, YES, let me explain.  The guy at the top of every business, Microsoft, Lowes, Home Depot, Staples etc... makes most of the money. 

Staticscally  speaking, in 2006 the average U.S worker worked an entire year, including weekends & NO VACATION time, to earn what the average CEO made in one (1) day!  And that is according to the Associated Press survey of 386 Fortune 500 Companies in 2006.

The executives averaged $10.8 million in total anual compensation, at the same time the average U.S. worker earned $29,544!  In nearly every field you'll find that only a few people earn most of the money, mostly at "the top".  Makes sense doesn't it?

If the first thought and question is Do Only The People At The Top Make All The Money, then "probably" the next question might be, "Is It A Pyramid Thing?"

Again, relatively easy answer, if you think about it. What is an "illegal pyramid", notice I said "Illegal Pyramid"? An illegal pyramid is defined, as its name indicates, the pyramid scheme is structured like a pyramid. It starts with one person - the initial recruiter - who is on top, at the apex of the pyramid. This person recruits a second person, who is required to "invest" $100 which is paid to the initial recruiter. In order to make his or her money back, the new recruit must recruit more people under him or her, each of whom will also have to invest $100. If the recruit gets 10 more people to invest, this person will make $900 with just a $100 investment.

The 10 new people become recruiters and each one is in turn required to enlist an additional 10 people, resulting in a total of 100 more people. Each of those 100 new recruits is also obligated to pay $100 to the person who recruited him or her; recruiters get a profit of all of the money received minus the initial $100 paid to the person who recruited them. The process continues until the base of the pyramid is no longer strong enough to support the upper structure (meaning there are no more recruits). Sorry for all the details.

Lastly, is corporate America a "pyramid scheme"? It is not a scheme as such, yet think about the structure of a regular corporation. CEO/Owner at the top, one, two or three (sometimes more) Vice Presidents, numerous managers, see chart below. Then ask yourself, have I honestly given a look at an opportunity that could set me financially free? Something that someone told you was "a pyramid scheme"? If so, maybe with things taken into perspective it is time to give the ownership of a home-based business a NEW/RENEWED look.

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