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Tired of Being Scammed By Ecommerce, MLM & Pyramid Schemes?

Updated on September 26, 2015

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?"

Answer: 200+

His reply, "Okay, you have 200+ people you can sell to."

Wrong!

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.

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    • iTommyGuns profile image

      TommyGuns 

      5 years ago from Blakeslee, PA

      If that's all he had to offer you did the right thing. I speak with my sponsor as much as possible, and he usually calls me! A good MLM company is focused on teams. I don't get paid unless the person I sponsor does too. So if it isn't for you, I don't want you to join

    • zeke2100 profile imageAUTHOR

      zeke2100 

      5 years ago

      Thanks for putting that out there.

      It seemed like a very personal topic since a very wealthy and influencial guy tried to recruit me, but I wasn't interested. His friendship was only there as long as I joined the MLM. The moment he knew I wasn't in, he moved on.

      I would consider him a "fast friend," meaning one who comes into your life as quickly as they leave, and you are left wondering if you had joined their MLM, how much money would I have thrown away?

    • iTommyGuns profile image

      TommyGuns 

      5 years ago from Blakeslee, PA

      I know many people that have successfully ran a MLM business but also have seen many pyramid schemes. I advise people to look at it this way. Is there a legitimate product or service tied to the company. Not just recruiting people for cash. In my company, we get paid when other get paid. The greatest part is we don't get money from our friend, we just save them some. If they want to profit from it...great. Ill help, but never lost a friend over it. I also recouped my investment in 4 hours.

      I guess my point is they are not all bad, they are not for everyone, and it does require you to work. Nothing comes for free.

    working

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