- August 22, 2006 at 5:03 pm #237380
Plans that promise profits mainly for recruiting new members are illegal pyramid schemes. In legitimate multilevel marketing plans, profits come primarily from selling goods and services to consumers.
Be aware that some pyramids are disguised as ?gifting clubs.? New recruits give money to current members with the promise that they will receive money from future recruits.
Know that all pyramids are doomed to collapse. That?s because it?s impossible to keep on getting fresh recruits who will pay to participate.
Legitimate multilevel marketing plans only succeed if they offer products or services that customers want. All successful businesses depend on repeat sales. If there isn?t constant demand for the products or services, the business will fail.
Sales to other distributors don?t count. Legitimate multilevel marketing plans aren?t based on sales to distributors. Profits should come from sales that you and any distributors under you make to the end-users.
Be wary of big earnings claims. No one can guarantee how much you?ll make. That depends on how hard you work and whether consumers like your products or services. Many people who work in multilevel marketing do it part-time to supplement their other income.
Check it out before you commit. Get all details in writing, and contact your state or local consumer protection agency for advice. In some states, multilevel marketing companies must register with the government and comply with other requirements.
Don?t buy more supplies than you need. Some fraudulent companies try to force distributors to pay for more products than they can reasonably sell.
- November 15, 2008 at 6:47 am #403595
i have been cheated about this back in my home country
haven’t seem one here yet
- January 16, 2009 at 11:10 pm #410244KawaiiGiggleParticipant
it’s sad that there are soooo many pyramid scams out there.
- January 17, 2009 at 2:02 am #410286
I have an odd openion about these. I think a lot of places are Pyraminds. Avon, tupperware, (my faverite) pamperd sheff, candelite ect.
They all work off the same basic idea. you have a person who sales. they make some money but the company tells them they must recruit to make the best money.
These places usually push the recruiting. Some dont. So the persom recruits another and they are told they need to do more so they recruit another.
They make what they sell plus profits from there two recruits. Then they push there recruits to get recruits so they can make profits from them and there recruits. A lot of people like to tell me its not the same but the last two house partys I went to the agent spent more time selling the business than the products.
I like to go to the partys sometimes they can be fun. but I just dont agree with the business stratages. Chargeing your sales people for catalogs,bags,business cards,Gift cards!!!,ect.
And not alowing them to have there own made to cut costs. It always just looks to me like the business is set up to profit more from there sales people than sells. Just my two cents.
- January 17, 2009 at 2:06 am #410288
People create innovative ways to cheat others out of their hard earned money!!
- January 17, 2009 at 10:49 am #410355
I’ve been sucked up into something like this before, many years ago. We thought that it would be a great way to make money on the side. Well no one wanted to buy into it, so we lost alot of money on it.
We were young and dumb back then, live and learn.
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