Is ClickFunnels a Pyramid Scheme?

Odds are, if you’ve been looking for a marketing platform for your business, ClickFunnels has popped up.

Due to a lot of software companies and online opportunities being border-line pyramid schemes, it’s hard to decipher which companies are legitimate, and which are not!

With my experience online, I’ve definitely run into a few opportunities that seemed to be Ponzi schemes, and some that are legitimate.

In this article, I’ll be giving you insight on whether or not ClickFunnels is a pyramid scheme…

What is ClickFunnels?

ClickFunnels is a Software as a Service company built by Russell Brunson and Todd Dickerson in 2014. The purpose of this software is to help marketers build sales funnels fast and easy – instead of gluing them together with code!

Simply put, ClickFunnels helps you build marketing funnels to scale or launch your business online in a reliable way.

Clickfunnels Promotion
(via Google)

I’ve been a ClickFunnels user for just under a year now, and I can’t see myself switching back. Once I signed up for the free trial, I quickly came to the realization that this software is miles ahead of the competition. I have experience with other funnel builders on the market, and while some were viable options, none came close to the functionality you receive with ClickFunnels.

One thing the founder Russell Brunson preaches is building a tribe of people wanting to pay you! His book Expert Secrets dives deep into this: you can read my review of Expert Secrets here.

What is a Pyramid Scheme?

Before proceeding any further, here is a link to the Federal Trade Commission’s (FTC) Definition of a Pyramid Scheme. I’d recommend reading this so you have a complete understanding, but one key takeaway in this definition is “They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public.” This is coming directly from the FTC website, linked above.

With that being said, in my opinion, a Pyramid Scheme is an unethical business model where a product is used to cover up the fact that they are paid to recruit more members. As more and more recruiting occurs, it eventually becomes impossible and most members don’t profit, but actually lose money.

Pyramid Scheme Overview
(via Google)

A great documentary on Netflix to learn more about this topic is “Betting on Zero.”

The description on Netflix’s website is the following: “This documentary dives into the complex world of Herbalife, the international nutritional products company accused of being a pyramid scheme.”

I’ve watched this documentary a few times, and it opened my eyes to what scam opportunities are out there, how you can tell, and how you can avoid pyramid schemes altogether.

Anyways, let’s jump into ClickFunnels Affiliate Program!

ClickFunnels Affiliate Program

ClickFunnels has an extremely lucrative affiliate program, check out my full review here. The commission percentages range from 30-40% for most products, including the base product, ClickFunnels Funnel Builder. You’ll receive this commission each and every month that a member you sign up stays with the software.

But, what’s important to note is no 2nd tier commission plan exists with ClickFunnels. Let’s say you sign up Joe to use the software for his business, and he signs up his friend Fred. You don’t receive any commission off of Fred’s purchase, only Joe’s.

This is the ethical way of running an affiliate program. Since it isn’t multi-level-marketing and you are selling a legitimate software product, ClickFunnels. You aren’t selling a business opportunity, you’re selling a tool to help somebody improve their business online!

You have to be careful when distinguishing the difference between legitimate affiliate programs (like ClickFunnels), and pyramid schemes!

With that being said, let me give you my final thoughts on this topic…

Conclusion: Is ClickFunnels a Pyramid Scheme?

Now what you’ve been waiting for: Is ClickFunnels a Pyramid Scheme? No, it is not. You can become an affiliate of ClickFunnels. This is where you will receive a commission for selling their marketing software, training, books, etc.

You aren’t receiving commissions for selling a “business opportunity,” you’re receiving commissions for selling a great SaaS product. Think of it like this: What’s the difference between this and being a car salesman at a local dealership? Nothing, you’re receiving commission for selling a product!

If you’ve read this far, you’re doing the right thing to research the topic thoroughly before moving forward!

Still skeptical for whatever reason? You can try out the software for 14-days, risk-free when you sign up for the free trial they offer.

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"Disclosure: I am an independent ClickFunnels Affiliate, not an employee. I receive referral payments from ClickFunnels. The opinions expressed here are my own and are not official statements of ClickFunnels or its parent company, Etison LLC."
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