Before we decide if ClickFunnels is a pyramid scheme, we must first get our description of a pyramid straight, which we will do later on. ClickFunnels is one of the biggest sales funnel platforms in the world. With this tool, you can build landing pages, small websites, and create a marketing campaign that works automatically.
There are a few unhappy customers because they thought ClickFunnels is a get-rich-quick scheme. But it is not. While ClickFunnels offers an affiliate program, it is mainly selling a tool that allows you to create a landing page, complete with an email opt-in pages, and a way to charge your customers for the product or a service that you are selling.
What is a pyramid scheme?
If you think about it, almost everything in life is a pyramid. An organization is a pyramid because one person sits at the top, and you will see more and more employees at the bottom. Networking and multi-level marketing companies are also pyramids, but not all of them are fraud or scams.
The correct word to describe a scam is a Ponzi scheme, which many people call a pyramid. But to make it easier to understand, let us stick with the word pyramid.
The pyramid scam started back with a man named Charles Ponzi back in the 1900s. This man realized that that price of US stamps that were used in snail mail was cheaper if he bought it from another country. He wanted to buy large amounts of these stamps, which was also called IRC, and then sell it in the United States for a profit.
He was able to get investors and promised that he would pay 50% interest within three months. The problem was, he did not buy the stamps. He used the money for his own benefit, like buying houses and partying.
He ended up asking more money from other investors and then used that money to pay the first batch of investors, but he never bought the stamps. And that is how the pyramid scam was born.
A pyramid scam is a business where there really is no product. If a company is earning profits from the money that a new recruit gave, and not from the sales of a service or product, then it is a pyramid, and it will collapse.
So, is ClickFunnels a pyramid?
What is ClickFunnels?
ClickFunnels is a marketing tool that is sold at a base price of $97. This price is not a one-time payment. It is a monthly subscription. So why would people a price as high as this? ClickFunnels is built for a marketer. The platform is used for digital advertising, and to boost sales and revenue.
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If you pay for this subscription, which is called the Start-Up Plan, you will get the following services:
- 20 funnels
- 100 web pages
- Automated email campaigns
- Unlimited contacts or subscribers
- Email integration with other email subscription providers
- Maximum of 20,000 visitors
- Maximum of three customer domains
- Opt-in pages
- A/B split testing tools
- Sales funnels
- Webinar funnels
- Landing page
- Membership funnels
- Order page
- Billing method
This is what a customer pays if registered for an account. In exchange for his money, he will get all the tools that he needs to create a marketing campaign. If he upgrades to a higher plan, which is called the Etison Suite, he will be paying $297 per month, and but he will have more power such as unlimited funnels and unlimited pages and unlimited site visitors.
Why do people think ClickFunnels is a pyramid?
ClickFunnels has an affiliate program. It is a program where, as a member, you will be selling the ClickFunnels tool and service. If you make a sale, ClickFunnels will reward you with a commission. Clearly, it is not a pyramid scam.
Here are the reasons why it is not a pyramid:
- It has a product – pyramid scams do not really have a product that is useful to the customer. They earn money because of the money that a new recruit puts in. ClickFunnels has a product. The product is a marketing tool.
- It does not earn money from recruits – in a pyramid scam, the company only earns a profit because the new recruits shelled out money to join. This money is shared between the recruiter and the company. In ClickFunnels, you buy the product, and then it is up to you if you want to be able to earn a commission.
ClickFunnels is not fake. It has a product that is useful, and it earns its profits from the subscription of its members. A pyramid is a company that only earns a profit because new recruits give money, and if you take away that model, that business is going to collapse because it has no product to sell.