Is ClickFunnels A Pyramid Scheme?
ClickFunnels is not a pyramid scheme, but there are many online pyramid schemes that you must avoid.
The main difference of a legit business like ClickFunnels and a scheme or a scam is on the products and the quality.
ClickFunnels has some great products for internet marketers who want to make more sales.
What Is A Pyramid Scheme?
Pyramid schemes are marketing or investment frauds.
The scheme members don’t make money by selling a product or a service, but when they find new members or referrals.
The referrals can have their own referrals, and that’s how they create a pyramid.
Pyramid schemes are not legit businesses.
It is not easy to figure out a pyramid scheme if you don’t have experience with various business models.
The main problem is that they pretend to be legit and use terms that you expect to hear.
For example, the online pyramid schemes use the term affiliate marketing even if they are not affiliate programs.
Of course, they mislead some beginners that don’t know the difference, and then new members find more referrals with the same strategy.
It is not a long-term business model because of the lack of a product, but some pyramid schemes can become popular for a while.
Here are some basic elements of a pyramid scheme:
Multiple membership levels:
Pyramid schemes always have many membership levels and push the members to the next levels with aggressive marketing tactics.
The highest levels cost thousands of dollars.
However, there are many legit network marketing businesses with multiple membership levels.
Sell The Opportunity:
Pyramid schemes sell only the opportunity.
There is no quality product, and people join them with the promise of big earnings.
If a business invites you to earn money without mentioning a product, it is almost always a pyramid scheme.
Spam Marketing Methods:
If you start receiving spam emails or phone calls to join an opportunity from an unknown person, they may promote a pyramid scheme or a scam.
You can understand what they sell by their pitch but keep in mind that they will try to become misleading.
What Is ClickFunnels?
ClickFunnels was founded in October 2014 by Russell Brunson.
It was a software that helped people to create sales funnels and had some basic templates.
Russell Brunson shared how he created a webinar funnel and then shared it with the members of ClickFunnels.
Today, ClickFunnels is still a sales funnel builder, but there are more templates, features, and products.
The company’s goal is to help people to build sales funnels for their products and have relevant training material.
The members can improve the templates, add their copy, and completely change the elements.
They are 100% free to build their own funnels as well.
The sales funnel builder has a drag and drop system.
You can find different elements on the menu and the sidebar that you can add them with one click on your pages.
It does not require any technical knowledge, and everyone can build funnels that work.
All the above are important because they make clear the product of ClickFunnels.
It is a sales funnel builder.
A company that sells a good product and adds value to the market is almost always legit.
Through the years, ClickFunnels has created additional products.
For example, you may have heard the books
These books analyze deep concepts on their topics and help the reader to apply their suggestions.
ClickFunnels has created training programs and tools as well.
For example, One Funnel Away Challenge, Funnel Hacking Live, and more.
ClickFunnels is not the only program that offers a sales funnel builder and relevant products.
It has competition like any other legit company.
Pyramid schemes don’t have competitors because they don’t have a product.
Their competition is other pyramid schemes.
Recommended Reading: Ultimate Clickfunnels Review: All You Need To Know Before You Sign Up
Why ClickFunnels Is Not A Pyramid Scheme
1. ClickFunnels Have Quality Products
The easiest way to spot a pyramid scheme is from the lack of products.
Those who sell pyramid schemes tell their pitch and put some nice words together.
However, they can’t show you a product or results of their product.
This is the point that all their efforts make no sense to experienced marketers.
Usually, they make unrealistic claims.
They are on the business niche, so they claim to make tons of sales in a short period.
In many cases, they sound like get-rich-quick schemes.
The main difference between these two types of schemes is the levels of membership.
The only thing you will get as a member of a pyramid scheme is a referral code or an affiliate link.
You can get these links from a few dollars to thousands of dollars, depending on your level.
Then, you have to get referrals if you want to get your investment back.
Some pyramid schemes create low-quality products.
For example, they sell outdated or short guides that you could find for free elsewhere.
These low-quality products are their excuse for the big claims and the next level of membership.
Each upgrade will give you a few new short videos or short ebooks.
ClickFunnels is the best sales funnel builder in the market.
The only way to figure out the quality of a product is by comparing it to the other alternatives.
ClickFunnels has many positive reviews around the internet, and many members have no problem updating their memberships every month to get the available services.
All the other products that you can get by ClickFunnels and Russell Brunson have high standards.
They don’t request you to buy or promote any product that is not worth the money.
2. ClickFunnels Has An Affiliate Program
Affiliate marketing is a different business model than pyramid schemes and multi-level marketing.
They don’t have any common things or similarities.
The first thing you need to understand if you want to become an affiliate marketer is that legit affiliate programs are free.
It is fine to pay for a tool or information.
But you must not pay to promote the product of another person.
There are quality affiliate programs that you can join with thousands of products to promote as Amazon Associates, eBay affiliate program, ClickBank, ShareASale, ClickFunnels affiliate programs, and many more.
You can find different types of commissions and conversion rates.
Some network marketing companies and pyramid schemes pretend to be affiliate programs.
You understand if they lie to you when they ask for money.
In pyramid schemes, you need to pay more money to get bigger commissions.
Affiliate programs have one standard commission for everyone without a joining fee.
It should make sense because if Amazon looks for people to promote their products, they should pay them for their work and not the opposite.
Of course, affiliate marketers get paid for their sales and not for the hours of their work.
Both affiliate programs and pyramid schemes use affiliate links or referral links.
Using links for tracking is simple and effective.
Many companies use links for different types of tracking and not only for referrals or commissions.
The fact that ClickFunnels has an affiliate program you can join for free is proof that it is not a pyramid scheme.
It gives 40% recurring commissions even if you don’t buy the software.
They offer a free training program for the affiliate marketers of ClickFunnels.
3. You Don't Have To Promote ClickFunnels
If you join a pyramid scheme, you have to promote the system or the opportunity as they tend to call their schemes.
You don’t have any other options, and the available resources are helpful only for getting new referrals.
This business model can’t work in the long-term because it does not add value to the market.
They try to get big sums of money from people and then put them in a position to do the same thing to other people.
On the other hand, ClickFunnels can work with every product that you sell online.
Russell Brunsons has created funnels for books, B2B services, network marketing, physical products, and digital products.
The main focus of ClickFunnels marketing is on people that want to increase sales to their existing products.
If you are an affiliate marketer, you don’t have to promote the ClickFunnels affiliate program.
You can join ClickFunnels as a standard member and create sales funnels for the products you promote.
You can also use templates from existing sales funnels to speed up the process.
There are unlimited affiliate programs.
You can find many alternatives in every niche with a simple Google search.
There is no obligation to use ClickFunnels or a lack of opportunity for those who don’t have a product.
Pyramid schemes try to convince you that they are your only chance for high commissions or a full-time income online.
These claims are unreasonable every time.
4. ClickFunnels Is A Brand Name
Pyramid schemes have a bad reputation.
Many people lose their money in these types of programs.
Some blogs and YouTube channels expose pyramid schemes regularly and save a lot of money from potential victims.
Many pyramid schemes can become popular for a while.
They can take from a few months to a few years before they collapse.
However, many people tell the truth online, so there are negative reviews and complaints about how they work.
The reputation of an online company is important because it can bring more customers when everything is right or warn us to stay away from it.
ClickFunnels is a brand name.
Most internet marketers that use sales funnel already know about it.
The affiliate marketers of ClickFunnels say positive words on blogs and videos all around the web and create a positive image for the program.
If you search for ClickFunnels reviews on the internet, you will discover that over 90% of them are positive.
There are pros and cons to every company, but most people are happy with the product’s performance.
The next thing to consider is the reputation of Russell Brunson.
He is a popular name and co-founder of ClickFunnels.
There are videos with Russell Brunson and other big names like Tony Robbins.
Lastly, ClickFunnels is in business since 2014.
Pyramid schemes can’t survive so many years without getting exposed or running out of referrals to maintain the business models.
Instead of that, there are many success stories of people who use the software and have made many sales with that.
Russell Brunson presents some of these success stories in the training programs. ClickFunnels has created the Two Comma Club as well.
It is for entrepreneurs that used ClickFunnels to build seven-figure businesses
5. No Membership Levels
It is the most obvious part of a pyramid scheme.
However, they use different tricks to confuse their members.
Membership levels are not upsells or additional products but levels of members with more advantages and higher commissions.
If someone promotes you a pyramid scheme, whether he knows the scheme or not, he will try to sell you the first level that does not cost much money.
Then, he will tell you to get the next level for higher commissions and more resources.
Pushing the referrals into higher levels is critical for a pyramid scheme.
Legit products can have multiple pricing plans.
The higher plans should offer more features of a product or a service.
The plans are explained from the beginning, and the customers must know their options.
ClickFunnels is in the second category.
It has two pricing plans based on your needs and a 14-day free trial for those who want to test the sales funnel builder.
Of course, the pricing plans don’t change the commissions of affiliate marketers and don’t affect the marketing part.
ClickFunnels is not a pyramid scheme but a legit company with a great reputation.
The affiliate program does not have membership levels and does not force you to buy the product.
You can easily promote even if you are not a member.
Lastly, the members use the software to create sales funnels for their own products.