Pyramid Schemes

#1

salutethehill

by hatchet, axe, and saw
Joined
Aug 18, 2006
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#1
For the life of me, I will never understand how people fall for these things. Basic math tells me that, if I put in a $10 gift, and expect to receive 6-36 gifts back, SOMEBODY'S getting hosed. More will be getting hosed than not. That’s why it’s illegal. That’s why it’s a scam. What say y’all?

Police warn about Facebook ‘Secret Sister' scam
 
#6
#6
Big things are happening! We are changing people’s lives. Let me know if you want to be a part of it
 
#10
#10

My wife and I tell our numerous MLM friends that we don't participate in or patronize MLM companies because:
1 - Statistically they are terrible investments.
2 - They're exploitative towards women (namely SAHM, of which my wife is one) and the financially desperate.

That doesn't go over well, regardless of any evidence.
 
#11
#11
My wife and I tell our numerous MLM friends that we don't participate in or patronize MLM companies because:
1 - Statistically they are terrible investments.
2 - They're exploitative towards women (namely SAHM, of which my wife is one) and the financially desperate.

That doesn't go over well, regardless of any evidence.

I've cut ties with an old friend because he and his wife became Amway believers.
 
#12
#12
My wife and I tell our numerous MLM friends that we don't participate in or patronize MLM companies because:
1 - Statistically they are terrible investments.
2 - They're exploitative towards women (namely SAHM, of which my wife is one) and the financially desperate.

That doesn't go over well, regardless of any evidence.
All the _____ parties are just a way for stay at home moms to “contribute” while the supplier company makes money. If Wife A has a party and B and C buy things, then B has a party and A and C buy things, etc. the “income” is just going in one pocket and out the other. The only person making money is the company selling the product. And in reality you just created taxable income you immediately spent on stuff you don’t need. I was talking to a guy in the Marines and he said on base nearly every wife has a side hustle selling this type of stuff.
 
#13
#13
Can't recall the name of the company, but several friends got roped into a progressive marketing long distance call service in Georgia in the mid 90s. You'd sign up your friends and then you'd supposedly get a little piece of their long distance phone charges. Then they'd sign up their other friends and you'd get a slightly lesser piece of that next band of subscribers. Etc.
 
#14
#14
That may be considered a safe harbor but it isn't a binding legal limit. My interest here has less to do with the efficacy of their business model in a changing tax landscape and more to do with the reckless giveaways that my local government can't seem to stop.
 
#15
#15
Can't recall the name of the company, but several friends got roped into a progressive marketing long distance call service in Georgia in the mid 90s. You'd sign up your friends and then you'd supposedly get a little piece of their long distance phone charges. Then they'd sign up their other friends and you'd get a slightly lesser piece of that next band of subscribers. Etc.

Excel Communications?

I'm fascinated by the Mult-level/Direct/Network Marketing business model, not because it's a good idea (terrible idea, actually), but because so many people get roped into these companies even though they are never profitable ventures. You can research Income Disclosure Statements that are released by the companies themselves, and once you wade through all the convoluted crap, you can determine odds of profiting. It's not good. It's downright terrible. It's closer to lottery chances. In fact, based on this web site, the odds of winning from a single spin of the wheel in a game of roulette in Las Vegas is approximately 286 times as great as the odds of profiting after enrolling as an Amway distributor.

Other Interesting Info:

What's Wrong With Multi-Level Marketing

FTC.gov - The Case (for and) Against MLM - Check out the tax studies starting at 7-2
 
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#17
#17
Has anyone actually received a product from any of these MLMs that is worth a crap?

I finally convinced my wife to stop hosting these stupid parties, but she still buys bags, cloths, kitchen tools, yada yada yada, from her friends.
 
#18
#18
Has anyone actually received a product from any of these MLMs that is worth a crap?

I finally convinced my wife to stop hosting these stupid parties, but she still buys bags, cloths, kitchen tools, yada yada yada, from her friends.

I went to one and never went back to another. At the time I didn't get what they were all about, but I left there angry. Why am I going to pay triple the price of what an item should actually be for the company, sometimes a regional person that helps your wife host, and then your wife/host, to gain something from this party? I was the only person who did not buy anything, but I left empty handed as I refused to pay outrageous prices.
 
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#19
#19
I know some people that were into Visalus. It's a weight loss shake thing.
 
#20
#20
What originally interested me about MLM is it's peculiar marketing. A friend of mine sells vacation packages (and dreams, evidently) through World Ventures/DreamTrips. His facebook posts are very braggadocios, boasting about his income, living like a baller, "you should be here" and all that crap. Of course, they're NEVER (not even rarely) about selling the vacation package.

They also use guilt tactics, as seen in the picture below (posted by another friend on facebook last night). I have a stay-at-home wife and 4 kids. Short of a fund raiser, I'm not buying anything to support anyone, respectively. I buy things I need based on value and quality. Where it comes from is inconsequential to me, and probably most others as well.

guilt.jpg
 
#21
#21
Can't recall the name of the company, but several friends got roped into a progressive marketing long distance call service in Georgia in the mid 90s. You'd sign up your friends and then you'd supposedly get a little piece of their long distance phone charges. Then they'd sign up their other friends and you'd get a slightly lesser piece of that next band of subscribers. Etc.
Excel
 
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#22
#22
It all depends.......if you are the person who starts the MLM then it is great, it you are the last person to hop on the MLM then it is terrible. It is all about timing.

Personally, I have been to one MLM presentation, and it was enough for me to know to stay the Hell away. A friend invited me to a presentation that used telephone services as the marketing instrument.....my friend actually made money before the MLM went under.
 

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