- Personal Finance»
- Income & Making Money
Tired of Being Scammed By Ecommerce, MLM & Pyramid Schemes?
A Human Pyramid Won't Stand Forever
A Fool and His Money
Please take note: This is a topic that is very serious to Hubpages and to myself, the Hub writer. I in no way promote MLM Marketing scams or Pyramid schemes, and want to warn you about the latest trend so you can protect yourself.
The best piece of advice for anyone trying to get rich quick is that you are opening yourself up for a bigger setback financially.
Millions of people throw their money away each year because they only wanted to make some extra money.
Thomas Tusser - not the Bible - said, "A fool and his money are soon parted."
If you are trying to get rich quick, this quote may be talking about you.
The problem with pyramid schemes and Multi-level Marketing (MLM), is that they require you to constantly recruit people to join.
The people that do best at recruiting involve personalities that are magnetic, and are typically outgoing people that are the life of the party. Unfortunately, once they have accomplished their task of recruiting you, they move on to find more people. You are left alone thinking you just made a new friend, but in all reality, you have been coerced into joining a secret club that may or may not sell any real products, and your constant participation is required if you hope to recoup your initial investment into the MLM pyramid scheme.
Don't Be a Victim
Buzzwords to Watch For
Since most MLM scams and Pyramid schemes don't ever incorporate the words MLM, pyramid, scam or scheme, you need to be cautious when you have any suspicions of this activity.
One of the most popular schemes taking place involves e-commerce.
You are invited to attend a seminar, maybe in a hotel or conference room somewhere. The speaker does a great job convincing you that there is money to be had. He goes on with his spiel about college just being a waste of time.
He said that a P.h.D. stands for "piled higher and deeper."
Why do you need college when you can make your millions today?
By the end of his presentation, he has you convinced that you need to start your own e-commerce business. The only catch is, you need yourself an e-commerce permit or license. It only costs $100.00. Then you can start referring people to your own website to buy products that they buy anyway from Walmart.com, JCPenny.com, BestBuy.com, or Target.com.
The problem with this logic is that most people do not go online to make everyday purchases. Most people still go to the local stores to buy these products.
Any sales you get from a person buying products through your referral link are not sustainable.
If you fall for the e-commerce scam, you will find this out the hard way. You will be the only person buying products through your own link for a discount, since you get a small percentage back from the purchases as your commission.
The latest trend in the e-commerce pyramid scheme is that someone invites you to call in and attend a conference call. In the call, they will convince you to start your own e-commerce website, and you will be making money hand-over-fist.
Ask anyone who has attempted at e-commerce (and obviously dropped out). Doing e-commerce via a referral link is not sustainable for income if you are doing it through a MLM scheme.
What Happens to the Money?
Be Cautious, Christians
Be cautious! It is not unheard of for these pyramid and MLM guru's to quote Bible verses and claim to be Christian. Oh, yes. They target Christians to join their group so they can make a buck off of the unsuspecting, all in the name of Jesus.
Where Did My Money Go?
You will find that MLM and Pyramid schemes are very similar.
Both require initial money paid in to get started. If it doesn't require money, then it will at least require your time.
It is often said in the opening MLM presentation, "You get out what you put in."
Translation: "You have to work long hours selling this to your friends and family to make a buck."
I was asked by one guy trying to recruit me, "How many contacts do you have in your phone?"
His reply, "Okay, you have 200+ people you can sell to."
I am not going to sell your gospel to my friends and family. Once I have burned all of those bridges with the MLM scams, then I will have put more distance between those relationships.
Here's a better suggestion: Get a real job, and don't try to squeeze money from hard-working people.
MLM reps work hard too, but their money is not sustainable, and it all dries up the moment you decide to stop working for said company.
Once your money goes into the company, it is hard to get it back, so don't put it in, in the first place. Making money quick can make people foolish with their money to the point of neglecting common sense.
Why do you think wealthy investors ask so many questions before buying into a company?
Answer: Because they want a return. That means their money back plus extra.
There is no honest return on MLM scams and pyramid schemes, unless you are the top man on the pyramid. He won't thank you for your money, but he will not hesitate to buy a Bentley with it, and get a mansion in a ritzy neighborhood. That was your money that bought all that.