Anyone have personal experiences dealing with someone involving an MLM (aka: Pyramid Schemes)?

[s0me0nesmind1]

Anyone ever had to deal with someone that is following a MLM (multi-level marketing) cult? https://en.wikipedia.org/wiki/Multi-level_marketing

I've run into quite a few in life - and I also know a good ~5 women on my Facebook from my college days not so long ago that fell for it. The funny thing is they totally slurped the kool-aid - it's damn near one step away from cult-ish. If their higher-ups told them to drink an elixir I'm pretty damn sure they would follow suite. Just like they were told they would make massive amounts of money. In the end, the only possibility is that they are losing mass amounts of money.

For the life of me, I just don't understand how people can be this stupid. I mean, before you commit to a job that requires a "down payment" of investing in them, you would think you would do some research. Any quick google of an MLM will tell you they are pyramid schemes. Not to mention, every single one of these girls are all college grads - so there is no defense of them being low on the intelligence. Plus - many of them are stay at home moms, so they have a husband that works full time and brings home some decent bank to support the wife + kids... You would think the husband would investigate before saying "Sure honey, put in a bunch of money - I'm sure you will make a bunch of side money in this amazing entrepreneurial investment that they make it seem like"

Another thing I find funny is that all of the MLM bullshit is about backstabbing each other. Which I have to admit, women are fucking great at backstabbing each other - which is why it's not a surprise that MLM is so rampant with women. Majority of time, at least men will stab you in the front. One girl will con her girl friend into joining, they will then try to con another friend into joining... None of them will succeed, but they will play the act to each other like they are succeeding in an effort to try and leech off each other. If one is trying to recruit another or sell product to someone and one of their friends gets word, the majority of them will try to sneak in and do it before the other one can. I have to admit, it's a dumpster fire that I love to watch. I've contemplated unfriending these annoying girls from College with their stupid ads, but part of me REALLY wants to see when they burn out and come back to reality to realize they have been screwed from the start.

For anyone oblivious to what I'm talking about, Jon Oliver can help you with that one:

So what experiences has ATOT had with these?

 

[Red Squirrel]

My dad was into one called Pye, and he kept trying to convince me to join too. "No no this one is different!". I think he broke even then decided to get out of it.

I had someone else I know who also tried to get me into one. Interstingly it was a rather technical/geek guy. He is the one that kind of showed me the ropes of computers when I was really new. So for someone like that to get into one kinda surprised me, but at same time, it was kinda a good selling point for the pyramid scheme, I figured if he's in it maybe it actually IS a good one. But no I did not get into it. Never heard back after how it went for him.

In principal, they probably do actually work when they are new, and when you are one of the first to be involved, but you can only go so far down the pyramid before it becomes practically unfeasible. If I am one of the 10 people that someone needs to have under them, now I need to convince 10 people to go under me, and not under the person that is higher up, and those 10 people need to convince 10 more people to go under them, and not under me, or someone higher, once you get past several levels the whole concept just breaks down.

Stuff like Avon and Etsy and Sensy and all those things are probably a better thing to get into than a pyramid scheme. I think? Not familiar with them but from the little I know of them they work differently and there is an actual product to sell. So you're kinda a reseller. With pyramid schemes often you're trying to sell the pyramid scheme itself, and not an actual product. It's practically bound to fail.

 

[disappoint]

 

[lxskllr]

Facebook... Where they dumbed down TV, and made it interactive. I prefer pretending that section of society doesn't exist.

edit:
Oh, and years ago one of my boss' friends was into that, and tried to get everyone in the company in on it. Sounded great. I don't trust anything that monetarily sounds great. If life was that easy, everyone would be rich.

 

[Skyclad1uhm1]

It's basically trickle down economics (aka, a scam for which a lot of people fall while 2s of rational thought should have stopped them)

 

[Ichinisan]

Stuff like Avon and Etsy and Sensy and all those things are probably a better thing to get into than a pyramid scheme. I think? Not familiar with them but from the little I know of them they work differently and there is an actual product to sell. So you're kinda a reseller. With pyramid schemes often you're trying to sell the pyramid scheme itself, and not an actual product. It's practically bound to fail.

Avon is just as lame. There’s no reason why a good marketable product should be limited to direct sales, instead of being sold online or through established retail channels. Avon makes more money from the “entrepreneurs” than from the end users.

 

[Pick2]

My Buddies Wife was into selling "Melaleuca" products for a while ... it ended up costing him over $5,000 dollars ! She bought the stuff as a "reseller" and never sold much. We never bought any , she did give us a small bottle of skin lotion to try Tossed it out years later

 

[Exterous]

I know someone who appears to be doing well at it given the numbers she gave me when asking some tax questions (since we also have our own business). She treats it more like a real job though - actually doing some marketing and setting up booths at bridal expos. I think a lot of people think they can just throw out a Facebook invite to a few parties and make money off of it.

 

[FeuerFrei]

Speaking of college students, Cutco likes to sign up college students to sell their knives, figuring you'll throw ungodly amounts of money at a knife set to help put them through college. Or at least they train salesmen to play the "poor college student" angle. I've seen their guerilla marketing online. Maybe other companies follow the same template?

But no personal experience.
(Ok, there was one attempt to recruit me and the wife at a furniture store once ... )

 

[whm1974]

Why just why is Multilevel Marketing even legal? I thought Pyramid Schemes are illegal in the US and most countries?

 

[UncleWai]

I investigate pyramid scheme for a living in Hong Kong. The companies just hire heavy hitters lawyers to find loopholes in laws. The common law standard is not applicable to govern MLM/pyramid, need more draconian measures to keep these companies in check. All countries should outlaw any form of MLM/pyramid for the sake of society.

 

[s0me0nesmind1]

Why just why is Multilevel Marketing even legal? I thought Pyramid Schemes are illegal in the US and most countries?

Pyramid schemes ARE illegal (from what I understand) it's Multi-level marketing that is still technically legal.

They keep it technically legal by virtue that the SUPPOSED GOAL is to sell the products to people outside of the company to end consumers. The obvious problem is that selling the product doesn't do shit - it doesn't make you ANY significant money - and the REAL goal as far as making any money is to try to recruit people under you so they do the dirty work that flows up to you.

The problem is, you have to get recruits that brain dead stupid and fall victim to the cult. Otherwise, they are going to realize "I can't sell this shit. No one wants to buy or hear about my stupid sales pitch on Facebook" and quit.

I know someone who appears to be doing well at it given the numbers she gave me when asking some tax questions (since we also have our own business). She treats it more like a real job though - actually doing some marketing and setting up booths at bridal expos. I think a lot of people think they can just throw out a Facebook invite to a few parties and make money off of it.

I doubt she is making too much if it's an actual MLM. If someone were to be making big bank, it would have to be coming from finding dumb people to recruit - not actually selling the item. How much roughly are we talking here?

 

[RossMAN]

Is anyone interested in a water purifier?

http://ethanvanderbuilt.com/2017/02/06/enagic-kangen-water-scam-yes-opinion/

 

[whm1974]

Is anyone interested in a water purifier?

http://ethanvanderbuilt.com/2017/02/06/enagic-kangen-water-scam-yes-opinion/

People who want a water purifier or any other products for that matter should buy them from a store or real salespeople, not from MLM drones.

 

[boomerang]

Why just why is Multilevel Marketing even legal? I thought Pyramid Schemes are illegal in the US and most countries?

Pyramid schemes are, but we've got this one called Social Security. It's operated at too high of a level though for anyone to investigate it.

 

[GagHalfrunt]

Right after I got out of college I got a call from a guy I knew in high school. Somewhere between friend and acquaintance, not somebody I had kept in touch with, but he was still friends with other people I knew, so it wasn't completely out of the blue. He had the idea that he and his partner were going to become gazillionaires with Amway. This was late 80s, early 90s and even then it was too late to make any real money in Amway. The people who were making the bank had been in since the 70s and had big networks, mostly by convincing suckers that they could be rich too. But the guy and his partner would not be deterred, they went at it HARD. I'll give them credit, they didn't fail due to lack of effort. They must have spent 60-70 hours every week selling, recruiting, and recruiting some more. They went to all the "Rah Rah!! Go Amway!!" pitch meetings, followed all the strategies, never stopped hustling and after a year burned out having made less than they would have made with a lemonade stand.

 

[whm1974]

I'm really surprise that most people are not aware by now that MLM is just a legalized scam that takes advantage of people who fall for marketing pitches.

The only people who are actually making money from MLM are the guys who started the company, and those who got in early.

 

[darkswordsman17]

Pyramid schemes are, but we've got this one called Social Security. It's operated at too high of a level though for anyone to investigate it.

Keep your moronic P&N garbage thoughts to P&N.

 

[darkswordsman17]

Yes, had multiple people I know. One of my sisters got into Quixtar when I was in high school, and actually when I was in college there was a big push (Quixtar again) so I knew several people that got into it despite me trying to explain to them. Then had a friend get into one of those health company ones.

And have had a bunch of people I've known (extended acquaintances like siblings of friends, friends of friends, and vague facebook "friends") try to do those slightly more legit ones (there's that candle one, and then there was that sex toy one that women were throwing all those "parties" for). I slightly remember the "Rubbermaid" parties that people had in like the late 80s.

More recently, one of my nephew's school seems to have gotten in with one as part of their fundraising (like how some places do magazine subscriptions). Its one of those where you "shop at places you already do" through their app and you can get "cash back" (which is in the form of gift cards that I think you can only spend through their app). But if you look up the app its full of speak about referrals and junk like that. I'm guessing that the stuff on the app are basically at full price and can't use other promotions that you would if you shopped directly versus through the app, meaning you almost certainly won't save any money and will have to jump through a bunch of hoops to get any remotely worthwhile return (and even then it sounded like you'd have to refer people to even get the amount that they tout, the "up to __% cash back).

 

[whm1974]

So how do we educate and get people to think so they don't fall for MLM schemes and other legalized scams?

 

[MagnusTheBrewer]

So how do we educate and get people to think so they don't fall for MLM schemes and other legalized scams?

Hey, it's the new American dream, finding new ways to scam people you don't know to get ahead.

 

[brianmanahan]

My Buddies Wife was into selling "Melaleuca" products for a while ... it ended up costing him over $5,000 dollars ! She bought the stuff as a "reseller" and never sold much. We never bought any , she did give us a small bottle of skin lotion to try Tossed it out years later

lol, my aunt did melaleuca for a while and was always trying to push it on family members.

i remember taking a peek at her reseller reimbursement check once and it was like 80$ for a month. i thought that was pretty big money, but then again i was only 9.

 

[Exterous]

I doubt she is making too much if it's an actual MLM. If someone were to be making big bank, it would have to be coming from finding dumb people to recruit - not actually selling the item. How much roughly are we talking here?

Supposedly shes up to $10k this year and just had her second person sign on as a rep. Its some makeup company and she's gotten a lot from the bridal shows she does. Didn't seem too bad considering its her first year and her second job

 

[whm1974]

Supposedly shes up to $10k this year and just had her second person sign on as a rep. Its some makeup company and she's gotten a lot from the bridal shows she does. Didn't seem too bad considering its her first year and her second job

She's probably make most of that money from the bridal shows.

 

[s0me0nesmind1]

Supposedly shes up to $10k this year and just had her second person sign on as a rep. Its some makeup company and she's gotten a lot from the bridal shows she does. Didn't seem too bad considering its her first year and her second job

20k income and she needs an accountant to do her taxes? Jeebus.

Either way that is still pocket change. Between all that she pays for her inventory along with fees to he able to present at a bridal show I'm sure she is barely paying for groceries with those miniscule amounts. Keep in mind, you would still make more working retail then that amount.