A hilarious video on Pyramid Schemes from my friends at ThoseGirlsAreWild.com
Only YOU Can Prevent Stupidity
We all know Pyramid schemes are as old as time itself, however, I’m sure each one of us knows someone that has been or currently is being affected by this crap to this day. Hey, especially in Los Angeles- the land of dreams, right? After the whole 2by2.net fiasco that basically fell apart almost 10 years ago, I actually began to have some hope and thought maybe, just maybe people are waking up. I mean even my same “friends” who made it their mission to try to recruit me in Pre Paid Legal had since started referring to them as pyramid schemes and acknowledging I was right about them. We were finally headed for the scam free promise land right? Nope. All the industry did was paste a new face on it and call it MLM (multi level marketing). And whats worse, those same people who were trying to recruit me for Pre-Paid legal are back…and more convinced than ever before that they finally found “it”.
According to PyramidSchemeAlert.org:
“Those who tell the truth about pyramid schemes face a wall of myths, deceptions and delusions. Charting the pyramid model and its flawed structure and characteristics, documenting the 99% failure rates, reporting the testimony of insiders in lawsuits and books who offer first hand accounts of the calculated lies about “income opportunity” – none of this breaks down that wall of deception. The media continues to buy MLM’s masquerade as a “fallback for consumers during the Recession.”
Sadly, few people get the big picture about multi-level marketing schemes. For the most part, MLMs are all the same scheme! From old established schemes like Amway to new startups like the Trump Network, these are the same flim flam in different clothing. One MLM may sell vitamins while another sells weight loss herbs. One sells legal services insurance and another fruit juice. But all of them, in reality, sell the exactly the same product: an endless chain income promise. MLMs are all in the “business opportunity” business, not “pills, potions and lotions.” And all of them sell the same “opportunity”, which is the chance to sell the “opportunity” to others who sell the same opportunity, forever and ever. Amen.
Here’s one obvious clue of their sameness: Most MLMs prohibit a consumer from joining different MLMs at the same time. Even though one scheme may sell juice and another vitamins, the schemes will legally prevent a consumer from being involved in both. Some even prohibit consumers, after they quit the scheme and move to another, from soliciting their downlines to join the new scheme for months or years afterward — even when their “downlines” may be their own family!
Why? Because the MLM companies know that while other MLMs are selling different products, they are in fact, bitter competitors for the real product – the income promise – which is exactly like the one they sell. The income promise is what they all sell, and their promises of income are always based on the same compensation plan: the endless recruitment chain.
For one thing, the MLMs themselves say so. All the MLM warns consumers about others that they say are scams, but reassure them that they are not among those fraudulent MLMs. The media also tell consumers that “multi-level marketing” is legitimate” but then also always cautions them against the many scams within the MLM ranks. They never tell consumers which ones are the scams. More shell games.
In addition, their income promise is a terrible lie. The “endless chain” income scheme, in fact, dooms 99% to losses. It only transfers money from the bottom to the top, rather than generates profit for all by creating value. Those who fall for the lie can run up great debt and lose their life savings. Much worse, the fraud leads people to prey upon their friends and neighbors in a futile effort to become part of the 1% of recruiters at the top that benefit from all the other people’s losses.
Another reason people miss the big picture and keep picking MLM shells with fraud beans underneath: they are told that if the scheme sells a product, it is automatically legitimate! Only schemes that charge large upfront “fees” are scams, they are told, even by the likes of the Better Business Bureau. But, they are assured, if the MLM charges you for products and marketing materials, it’s legit. This is utterly false and dangerously misleading, but many reporters and BBB offices are merely repeating what the MLM industry tells them.
In fact, few MLMs charge large upfront fees any more. They now use a different way to get your money and transfer it to the schemers at the top of the recruiting chain. Nearly all the money they get now, whether upfront or monthly, comes from the salespeople’s own purchases of “products” (overpriced) and “marketing materials” (worthless). Most consumers pay and pay and pay and don’t’ ever earn a dime in income but they believe it was all legitimate (even though they lost money) because they purchased products (at absurdly high prices and in order to qualify for commissions they never got), rather than paid “fees.” Here’s the MLM trick: the purchases are the infamous “fees” in disguise!
And then there is the sad and outrageous role of our Federal Trade Commission (FTC), which was corrupted by lobbyists and campaign contributions. In 2000, it virtually stopped investigating and prosecuting MLMs. This has given MLMs the aura of legality. MLMs now routinely use the very same defense that fraudster Bernard Madoff employed so successfully for years. When questioned about his scheme, he would say, “How could I be running a scam if the government is not even investigating me and has never prosecuted me?” So, too, MLMs use the lack of law enforcement as part of their false claim of legitimacy and the FTC’s inaction becomes a tool of the fraud.
Pyramids and Ponzis can steal years time and a lifetime of savings. In doing so, they can frequently break up families, end friendships and destroy marriages. Some say the pyramid scheme has the power to steal people’s very souls. Indeed, some people who are infected by the fraud seem to lose their minds, their personalities, their ethics and their values. They appear addicted and to behave like followers of a cult.
Pyramid and Ponzi frauds use all the powerful aspects of modern marketing — branding, product claims, positioning (social class, ethnic, family, patriotism, religion), identity, community, hope and meaning — as tools of deception.”
Here are all of the pyramid schemes & MLMs they discuss on their website from A-Z:
- 7 Figure School of Marketing
- Ambit Energy
- Biometics International
- Biz Calling Card
- Black Business Builders
- Black Shopping Channel
- Britt World Wide Group
- Business in Motion (in Canada)
- Carbon Copy Marketing
- Daily Income Maker
- Elite Activity (tu prosperiedad hoy)
- Empower Network
- Escape International
- Forever Living
- Fortune High Tech Marketing
- Gifting Schemes
- Global Resorts Network (grn)
- Gold Mine international
- GuardIt Technologies
- Healthy Chocolate
- ICF WORLD HOMES
- Ideal Health (part of the Trump Network)
- Instant Massive Cash Flow
- Juice Plus
- Liberty League
- Local Ad Link
- LTD (div. of Amway)
- Maximum Success
- Millionaire Club
- My Great Opportunity
- Motor Club of America (MCA)
- Narc That Car (Crowd Sourcing International)
- National Chamber of Commerce
- Online Business Systems
- Organo Gold
- P 2 P” or “Carbon Credits
- Penny Matrix
- Pre-Paid Legal
- Process at Home
- Quattro University
- Quest International
- ReGenesis Marketing Group
- Send Out Cards
- Shop To Earn
- Syntek Gas Additive
- Tahitian Noni
- Team National
- The Magicofmakingup.com
- Travel Ventures International or TVI
- TVC Matrix
- Trump Network
- UFirst Financial or MMA
- United Pro Media
- Vemma/Verve Corp.
- Wake up Now (wunlife)
- Wealthy Affiliate University
- World Financial Group (WFG)
- World Ventures (Travel Agency)
- Xocai Chocolate
- “Your Promised Land,” a ‘faith based” MLM base selling “Divine Water”
- Zoegetics or Zoe life
Look. These companies are going to be here and keep popping up no matter how much we complain and prosecute. The only real deciding factor here is YOU.
So here’s how you, the individual, can get one leg up on the mental mind control these people try to push on you.
The next time these scam artists are in your face, just remember to ask yourself the following questions before seriously considering signing up for this crap:
If it was so easy to get rich quick in this specific business they are pushing, do you think the people who are offering the information/class/seminar/lotion would really be doing the work to get you involved?
Why exactly are they talking to you, the person they barely know in the first place?
Oh thats right, its because you ARE the product.
The entire idea is to get the pyramid structure stacked so your money keeps flowing to the top. There are no products outside of you.
IT’S ALL ABOUT ENCOURAGING YOU TO GIVE THEM MONEY SO YOU CAN KEEP THE CYCLE GOING.
Now that you know, how does it feel to be the product and be tricked into selling faux “cover -up” products?
And also understand is this- real wealth does NOT want competition. At all.
It all comes back to what your momma told you- “If a deal seems too good to be true, then it’s probably financed with the devil’s illegitimate drug money…”
(oh that aint what she said?)
Info on one of the largest Pyramid schemes to date – Amway/Quixtar:
More info on Amway here: http://pyramidschemealert.org/PSAMain/news/AmwaySuedasPyramidScheme.html
Statistic analysis showing noone makes money from multi level/pyramid schemes:
And a great tool if you’re feeling a little mischeivious..muahahahhaa:
Disclaimer, the views expressed in this post are those of ThisIsWhyUBroke.com and not of Thosegirlsarewild.com
What you will learn from this book:
How to decrease specific expenses and beat debt.
How to pay off collection accounts and fix your credit report.
How to purchase a car the right way.
The right types of insurance to purchase.
How to get started investing.
Tips for getting into position to purchase rental income property.