Never Fall For A Multi-level Marketing Scam!
By Pete on Nov 5, 2009 in Entrepreneurs, Money Management
Multi-level marketing (MLM) is nothing but a big joke!
For me, time is life, and I don’t like to waste it! This one jerk-off I met the other day, however, not only didn’t get this memo, but he also went on an on with his spiel, even though I assured him numerous times that I was not interested in the least. “But wait …” he kept saying. Then came my responses, “No … not at all … never.” Man, what don’t some people just “get it” when you tell them something!
Do you know what this type of marketing is all about? If so, I’ll catch up with you later. If not, let me give you a short rundown: for starters, only the names ever change (the essential information is always the same) and the following description will paint you a clear picture of how the vast majority of theses scams are full of crap, but not opportunity.
There are many names, and faces, for MLM (ex. Pyramid Scheme, Ponzi Scheme, Rat Society, etc.) but no matter what they’re called, they will always consist of at least three characteristics (every time, regardless of what that liar is telling you to your face):
1) The new person (you) has to cough up some amount of money to join!
2) You recruit others to join, the recruits cough up their cash and then the person on top gets most of the money!
3) The top dog then throws you some table scraps to keep you happy until it’s all over!
This scheme … err, scam benefits only the earliest birds, as they are the ones who will enjoy at least some income as more and more people sign up under them. However, this “company” is bound to fail, every single time, because it is not based on fundamental economic growth and the number of people who join will eventually run out (right before the phony company collapses. Isn’t that right, Madoff? Or should I say, “Mr. Madeoff with a lot of people’s money?”).
This is what happens in stock bubbles: the early adopters buy stocks and see their wealth quickly grow. Then they spread the good word, and more people join them. After this, everyone is happy right? Wrong! The reason: since this is not based on real economic growth, at some point, there is bound to be less buyers than sellers, and when this time eventually comes it will all be over (this is when the ones on the top flees with all the loot).
MLM is an ingenious way to mask a scam behind a product. The selling price for these products-that-couldn’t-make-it-in-the-real-world are set ridiculously high to quickly feed those at the top of the pyramid. However, it is also bound to fail because there will be a breaking point where you simply cannot get any more buyers to cough out those exorbitant rates for mildly useful health juices, bionic air cleaners or any other questionable products with falsely claimed usefulness.
The truth is, MLM simply does not work for anyone other than those who get in at the first couple levels. The vast majority of participants in such a scam will only lose their original investment, and make hardly any profit at all. This is my own personal guarantee!
Oh, as for that jerk that was trying to talk me into one of these scams: I eventually had to dump a diet soda over his head to wake him up to the beautiful world of reality (don’t worry, he’ll thank me later)!
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