Pyramid Schemes (MLM)
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Colt

Columbus, OH

#1 Jan 3, 2013
Has anyone been duped into joining an MLM scheme?
Colt

Columbus, OH

#2 Jan 3, 2013
It seems most of them you have to pay to join, or pay for a bundle of products or services each month to stay active, then you have to find others to do the same by recruiting. The majority never make money.

“Be Kind to Animals”

Since: Nov 07

Nelson, VA

#4 Jan 3, 2013
Amway, Avon, Mary Kay, Tupperware, Pampered Chef, etc. are MLM's. Do your homework before being involved and don't listen to those trying to recruit you as you're only going to get the "good news" from them. Amway is considered a LEGAL pyramid scheme. I watched a Mary Kay awards show and thought their hype was disgusting. I had relatives involved in Amway and they lost their asses but they went for it because a close friend convinced them they would get rich with Amway. My daughter finally quite selling Avon but owed them over $300. when she quit. There is plenty of information available for those thinking of becoming involved with these "work at home" plans and very few people are ever successful enough to make a living doing it. And, if you lose, you have no recourse because all these plans are legal.
Colt

Columbus, OH

#5 Jan 3, 2013
Guest wrote:
The most common pyramid scheme is Satan's christian pyramid scheme they pretend is the gospel of prosperity that is preached by ALL of Satan's christian evangelists. Give me $10 and the Satanic christian gods will bless you ten, 100 a thousand fold ! Just make sure you give your money to me ! LOL Satan first preached the christian gospel of material prosperity to Jesus in Luke 4:5-7 which states -
5 Then the devil took Him up to a high mountain and showed Him all the kingdoms of the habitable world in a moment of time in the twinkling of an eye.
6 And he said to Him, To You I will give all this power and authority and their glory (all their magnificence, excellence, preeminence, dignity, and grace), for it has been turned over to me, and I give it to whomever I will.
7 Therefore if You will do homage to and worship me just once, it shall all be Yours.
I believe many of these schemes use false profits to gain followers in this very way especially during their meetings/ business presentations. Many people will think the business is based on christian belief, but it's a trick in order to make newcomers feel welcome.
Colt

Columbus, OH

#6 Jan 3, 2013
Barbara Hathaway wrote:
Amway, Avon, Mary Kay, Tupperware, Pampered Chef, etc. are MLM's. Do your homework before being involved and don't listen to those trying to recruit you as you're only going to get the "good news" from them. Amway is considered a LEGAL pyramid scheme. I watched a Mary Kay awards show and thought their hype was disgusting. I had relatives involved in Amway and they lost their asses but they went for it because a close friend convinced them they would get rich with Amway. My daughter finally quite selling Avon but owed them over $300. when she quit. There is plenty of information available for those thinking of becoming involved with these "work at home" plans and very few people are ever successful enough to make a living doing it. And, if you lose, you have no recourse because all these plans are legal.
Exactly....that seems to be the theme and the main feature when recruiting, they want you to go after friends or family members, someone that will trust you.

I had a friend try to approach me and while he was involved with the scheme, I avoided him because that is all he would talk about.

I would think in most cases friends and family will avoid people involved in these things and in some cases friendship would be lost.

“Be Kind to Animals”

Since: Nov 07

Nelson, VA

#7 Jan 3, 2013
Colt wrote:
<quoted text>
Exactly....that seems to be the theme and the main feature when recruiting, they want you to go after friends or family members, someone that will trust you.
I had a friend try to approach me and while he was involved with the scheme, I avoided him because that is all he would talk about.
I would think in most cases friends and family will avoid people involved in these things and in some cases friendship would be lost.
I was quite distressed when my family member became involved in Amway. He may as well have joined a cult. Everything they did revolved around "The Business" and I was considered evil because I refused to support it. Eventually, he had to learn the hard way, like everybody else, that it was a losing venture. I am so relieved that he is no longer involved. I wish our government could shut these things down but all they have been able to do so far is to issue warnings, post complaints, and create rules for the individual corporations. Amyway was forced to disclose to every one of their recruits that the average IBO earned $150. per month. But, this wasn't much of a deterrant because at the meetings they had all these "success" stories to offset the bad news. Recruits were advised to refrain from listening to "negative" comments. In my case, it was a nightmare watching someone I loved being caught up in and suckered into this scheme. I'm glad it's over for me, but there are many others being caught up as we speak. What can we do?
guest

Jonesboro, AR

#8 Jan 3, 2013
Barbara Hathaway wrote:
<quoted text>
I was quite distressed when my family member became involved in Amway. He may as well have joined a cult. Everything they did revolved around "The Business" and I was considered evil because I refused to support it. Eventually, he had to learn the hard way, like everybody else, that it was a losing venture. I am so relieved that he is no longer involved. I wish our government could shut these things down but all they have been able to do so far is to issue warnings, post complaints, and create rules for the individual corporations. Amyway was forced to disclose to every one of their recruits that the average IBO earned $150. per month. But, this wasn't much of a deterrant because at the meetings they had all these "success" stories to offset the bad news. Recruits were advised to refrain from listening to "negative" comments. In my case, it was a nightmare watching someone I loved being caught up in and suckered into this scheme. I'm glad it's over for me, but there are many others being caught up as we speak. What can we do?
I'm in the same position. I hurts to see my family member keep throwing their money away. The organization they are associated with gives them praise and takes their money, but there is never the return they are led to believe they will get. Over the years they have thrown away a lot of money. And their constantly pushing their 'business' is painful to watch and pain to be subjected to. I'm all ears on what can we do. But I haven't found the answer yet. I hate these organizations that do so much damage to people's lives to make a buck.
Colt

Columbus, OH

#9 Jan 3, 2013
Barbara Hathaway wrote:
<quoted text>
I was quite distressed when my family member became involved in Amway. He may as well have joined a cult. Everything they did revolved around "The Business" and I was considered evil because I refused to support it. Eventually, he had to learn the hard way, like everybody else, that it was a losing venture. I am so relieved that he is no longer involved. I wish our government could shut these things down but all they have been able to do so far is to issue warnings, post complaints, and create rules for the individual corporations. Amyway was forced to disclose to every one of their recruits that the average IBO earned $150. per month. But, this wasn't much of a deterrant because at the meetings they had all these "success" stories to offset the bad news. Recruits were advised to refrain from listening to "negative" comments. In my case, it was a nightmare watching someone I loved being caught up in and suckered into this scheme. I'm glad it's over for me, but there are many others being caught up as we speak. What can we do?
Something that might help those being lured into one of these schemes is to request their (income disclosure statement or IDS). Most of these companies have it availabe online I would think. Some of them I've looked did and it made me laugh, espeically when when you have someone claiming to be making good money and want you to sign up, but if you look at the companies IDS they show about 95-99% are barely able to make anything.

“Be Kind to Animals”

Since: Nov 07

Nelson, VA

#10 Jan 3, 2013
Colt wrote:
<quoted text>
Something that might help those being lured into one of these schemes is to request their (income disclosure statement or IDS). Most of these companies have it availabe online I would think. Some of them I've looked did and it made me laugh, espeically when when you have someone claiming to be making good money and want you to sign up, but if you look at the companies IDS they show about 95-99% are barely able to make anything.
In the case of Amway, there are some glitches in the law that precludes them from showing their financial status. However, I learned from various online sources that about 80% of their income is made in Europe. They want to make more money in America but apparently, Americans have become wiser. I suppose the money that Europeans make goes much further than it does here.
Colt

Columbus, OH

#11 Jan 3, 2013
Sometimes sites like http://dockets.justia.com/ will show pending or closed court cases involving some of these schemes. Attorney General or State Auditors website may have info on their on the company, like cease and desist orders. The Better Business Bureau should have info on a company as well. But since these types of businesses are a word of mouth, then the same can be done to let others know about the scheme, use word of mouth.

“Be Kind to Animals”

Since: Nov 07

Nelson, VA

#12 Jan 3, 2013
guest wrote:
<quoted text>
I'm in the same position. I hurts to see my family member keep throwing their money away. The organization they are associated with gives them praise and takes their money, but there is never the return they are led to believe they will get. Over the years they have thrown away a lot of money. And their constantly pushing their 'business' is painful to watch and pain to be subjected to. I'm all ears on what can we do. But I haven't found the answer yet. I hate these organizations that do so much damage to people's lives to make a buck.
I feel your pain. But in my experience, there is absolutely nothing you can say or do to change their minds. These companies use brainwashing techniques to keep people working for them. This is one of the saddest situations I have ever been involved in. From what I've read, people who become involved in these cult-like organizations would literally have to be de-programmed by professionals to be "cured". Fortunately for me, my family member came to realize that the friend who talked him into being involved, was just trying to achieve his own goals. It was also fortunate that this "friend" has been known to his circle of friends as being a con artist. In your case, all I can say is hang in there and hope for the best. It took several years for my family member to come to his senses and I'm not totally sure they are completely out of that mind set now but simply unable to afford to continue the way they were going. The only vow I made during that time was to avoid providing any money to them, or to help in any way whatsoever. I took a lot of criticism for my failure to support their venture and it broke my heart. But I stuck to this and told him he would have to get his "support" from his "business" because they were the only one's he would listen to anyway.
Colt

Columbus, OH

#13 Jan 3, 2013
Barbara Hathaway wrote:
<quoted text>
In the case of Amway, there are some glitches in the law that precludes them from showing their financial status. However, I learned from various online sources that about 80% of their income is made in Europe. They want to make more money in America but apparently, Americans have become wiser. I suppose the money that Europeans make goes much further than it does here.
Wow, that makes sense. "Wiser" and a saturated market in America! I bet word-of-mouth is already getting around avoiding these business schemes.

I remember reading an article a little over a year ago about a company called Herbalife, where the Belgium courts alleged that the company is a pyramid scheme, so there is no doubt these companies are big in other countries as well.
EyeTakeException

Jonesboro, AR

#14 Jan 3, 2013
While there are always schemes and sometimes crooked people who infiltrate legitimate business, there are some honest exceptions, such as Mary Kay. I know a lady who is a high achiever in Mary Kay mainly because she works her tail off! Besides supervising others, she gets out and sells alot of the company's products herself. She has helped me out several times by showing up at my place of work just before a holiday and helping me get just the right gift. When I was at a ball game at St.Louis a few years back, they had a convention and you should have seen all the pink Cadillacs ! I believe it is a legitimate opportunity for those willing to be positive and work to serve others. By the way, I'm a guy and I don't sell Mary Kay!

“Be Kind to Animals”

Since: Nov 07

Nelson, VA

#15 Jan 3, 2013
EyeTakeException wrote:
While there are always schemes and sometimes crooked people who infiltrate legitimate business, there are some honest exceptions, such as Mary Kay. I know a lady who is a high achiever in Mary Kay mainly because she works her tail off! Besides supervising others, she gets out and sells alot of the company's products herself. She has helped me out several times by showing up at my place of work just before a holiday and helping me get just the right gift. When I was at a ball game at St.Louis a few years back, they had a convention and you should have seen all the pink Cadillacs ! I believe it is a legitimate opportunity for those willing to be positive and work to serve others. By the way, I'm a guy and I don't sell Mary Kay!
Mary Kay is not as big a problem as Amway. They focus mainly on selling a darned good product. There are some success stories with them but they are still a MLM and successful folks do work their butts off. I see those pink cadillacs every now and then. The folks I knew that sold Avon said they received 40% from their sales. That gives you an idea of the markup on their products. But, you still have to buy the products to sell them and with Mary Kay and Avon, there is strong competition everywhere. My biggest gripes have been with Amway as they don't promote products as much as they promote recruitment. Selling cosmetics is a lucrative business anywhere so it's easier to be more successful because there is always a market for it. I have attended Mary Kay makeup parties and that's how they do so well. Women love doing those things and will buy the product because of it. I still like Mary Kay.
Colt

Columbus, OH

#16 Jan 3, 2013
Here is a good article written about a year ago in "The Salt Lake Tribune" that exposes a couple of MLM companies average earnings.

http://www.sltrib.com/sltrib/home/51183138-76...

The majority of the reps in the MLM companies mentioned in the article earn anywhere from $65 a month to $122 a month, yet they have to spend $150 a month on product and spend even more for meetings, conventions, trainings and motivational material.

The only way anyone really makes money in these schemes is to get in first, because ultimately those that get in later won't make any money, unless they are already in MLM and transfer their downline over to a new business.
Sandy

Independence, MO

#17 Jan 3, 2013
Has anyone heard of Fortune Hi Tech Marketing?

That company has been riddled with problems by regulators in the past couple of years. They have been in trouble with North Dakota, Montana, Texas, and North Carolina. BBB has some of their problems listed under Government actions and rates the company with a D+. They currently have two class action lawsuits pending. USA Today wrote a few articles on the company, exposing a lot.

“ phd in clinical ignorance”

Since: Apr 09

Location hidden

#18 Jan 3, 2013
20 years ago a friend of my wife fell into the amway trap. she went through her spill, following the sales pitch to the letter.
we had a good laugh over the whole thing but my wife felt sorry for her so we bought the starter kit.
we immediately trashed all of the propaganda and just used the products, not impressed with quality or price, we went on as usual.
that girl never got rich. maybe it was my fault?

“Be Kind to Animals”

Since: Nov 07

Nelson, VA

#19 Jan 3, 2013
Colt wrote:
Here is a good article written about a year ago in "The Salt Lake Tribune" that exposes a couple of MLM companies average earnings.
http://www.sltrib.com/sltrib/home/51183138-76...
The majority of the reps in the MLM companies mentioned in the article earn anywhere from $65 a month to $122 a month, yet they have to spend $150 a month on product and spend even more for meetings, conventions, trainings and motivational material.
The only way anyone really makes money in these schemes is to get in first, because ultimately those that get in later won't make any money, unless they are already in MLM and transfer their downline over to a new business.
There needs to be a lot more articles like that one. I don't understand why the media hasn't jumped all over MLMs.

“Be Kind to Animals”

Since: Nov 07

Nelson, VA

#20 Jan 3, 2013
Professor Know It All wrote:
20 years ago a friend of my wife fell into the amway trap. she went through her spill, following the sales pitch to the letter.
we had a good laugh over the whole thing but my wife felt sorry for her so we bought the starter kit.
we immediately trashed all of the propaganda and just used the products, not impressed with quality or price, we went on as usual.
that girl never got rich. maybe it was my fault?
I used Amway laundry detergent but it wasn't worth what I paid for it. I tried several of their products and only really liked one....their stain remover. It was the best I've ever used. I prefer picking up my stuff in a grocery store or Wal-Mart anyway.
guest

Ridgedale, MO

#21 Jan 4, 2013
The largest pyramid scheme in the history of the world is right here in the USA. We call it Social Security.

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