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Posts tagged pyramid schemes
Multi-level Marketing (MLM)
Dec 24th
I’m sure by now you have at least seen the term MLM (or multi-level marketing) somewhere. But, do you really know what it is, or if you can make money in such a system? Many MLM systems are dangerously close to being nothing more than pyramid schemes. In a Multi-level Marketing program, you make money not just from your sales, but also from the sales of recruits you have brought into the system under you in a pyramid type structure. Many pyramid schemes try to make their systems appear legitimate by presenting them as an MLM system.
I’m sure that there are many legitimate MLM systems around where you could make some money. But, sadly, the largest percentage of them really offer you very little hope of making any sort of substantial income at all. They will fill your head with hype with evangelical fervency and promise you the moon. Most, will also of course show you many ‘questionable’ testimonials from happy customers who thank god that they joined this system. The sad truth of the matter though, is that most of them are just a load of rubbish. My best advice to you is, if you are seriously considering joining an MLM, do some serious research up front. Do yourself a favour and find out everything you can about the company and its members. Do internet searches and see how many dissatisfied or disgruntled members there might be. Try not to pay too much attention to glowing testimonials and other pitch page type reviews which are most likely just written by members trying desperately to get more recruits in under their name.
Liberty League – Scam
Dec 7th
From what I have been able to find out, Liberty League is actually a pyramid scheme veiled as a product marketing operation. It has been classified as a pyramid scheme in New South Wales Australia after an investigation. From what I gather, to make money, you must produce a substantial number of successful product leads, with guarantees that if you invest enough money into it, your efforts will pay off big. It is a simple enough task to just google it and you can find large numbers of ex-users who were suckered in and lost large sums of money ($15,000 and up) before they wised up and got out. There are also numerous report of phoney results and testimonials being offered by others in the program in an attempt to boost membership into the pyramid beneath them to try to grow their earnings.
While investigating Liberty League, I also came across another company Unified Wealth Solutions which appears to be in league with them. Unified Wealth Solutions is primarily geared towards marketing website design and hosting services, providing customers with turnkey ecommerce stores. But, the implication seems to be they will then attempt to direct customers into the Liberty League system as a way to get marketable products. I welcome comments from anyone with further knowledge or experience with either of these systems, but for now, I will leave them both marked as scams.
Cash Gifting Programs – Can You Say PYRAMID SCHEME?
Dec 4th
Cash Gifting Programs are the latest face of one of the oldest con games and schemes, the Pyramid Scheme. No matter how you dress them up, or how fancy the wording is, they are all the same and destined to fail. There is no magic formula, or secret method, it is mathematically impossible for any such scheme to work. For x number of people to make $10,000, y number of people must lose $10,000, it is just that simple. Whenever such a scheme finally collapses (which they all must do at some time) almost 90% of the people who have entered it simply lose whatever money they put in.
Don’t let the dollar signs and hype fool you. There is no unlimited pool of wealth out there just waiting to come your way. The number of people required to support the payout must increase exponentially. Perhaps the best way to show this is through a simple example, please keep in mind that the con artists who run these scams will do everything they can to try to convince you why this won’t happen with their club of course.
Let’s say Wealth-4-Life Gifting Club offers a $10,000 payout to each member when they reach the top level of their club, the entry cost is $1,000 but you are going to get back 10 times that, so what a windfall this is! So to pay out the first ‘winner’ only 10 people have to join up and gift their $1,000 and pay off the $10,000. Now, for each of these 2nd level entrants to get their $10,000 you need $100,000 so the club needs another 100 new entrants with their $1,000 entry fee. Now, to make sure all these new 100 entrants get their $10,000 you will need $1,000,000, so now you need to have another 1,000 new entrants come in with their $1,000 entry fee. Next, to make sure these 1,000 new entrants also get their $10,000 you need to come up with $10,000,000, now you need 10,000 new members. Next level, 100,000 new members needed, after that, 1,000,000 new members, 10,000,000 new members etc etc.. I think you can see where this is headed.
Just keep in mind that the job of the person running the club is to use whatever methods they can to convince you to join and to assure you that unlike other plans you WILL make money with theirs. They will use all manner of phoney charts, statistics, testimonials from ‘real’ winners etc. If something seems too good to be true, it usually is.