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Pyramid Schemes


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MLM's are no different than most other sales companies. The problem now is that social media has allowed them to go from face to face sales (which is incredibly scary to most people) to the protected realms of online. A built in "friends" list makes it even easier for people to get started.

 

The whole "pyramid scheme" misrepresentation is nonsense. Most companies have a "pyramid" structure with bosses at the top making more of the company's money based on the work of those beneath them. And just like any other company, you better do your due diligence before getting in bed with anyone asking for money. Some companies are good...some aren't.

 

I could never do it, I just don't like dealing with people enough to ever be in sales (see the pet peeves thread), but I know a girl in Washington who started in one of these companies two years ago to give herself something to do while her husband was on regular deployments. At last check she was making about $350K per year and climbing (yes, she tries to get me to join regularly!). It's not easy money. She works her friggin ass off every single day, but she basically works for herself and gets to live her life the way she wants it. Honestly, sometimes I'm jealous and wish I had the personality to sell. I would love get out of my day to day drudgery, but I know I wouldn't be good at it and I can't afford to fail at a business venture right now.

 

Anyone who craps on MLM as a business model doesn't understand it. It's a legitimate way to make money through sales. Crapping on the output (the non-stop sales on social media) on the other hand is perfectly reasonable. :) One thing that is particularly aggravating lately is being added to sales groups without permission. Anyone who does that to me is blocked outright...family or not.

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30 years ago a buddy of mine tried to get me to go in on a real pyramid scheme that his brother was involved in. The investment was $7000 and you got a great return when other investors got into it.

 

This friend did it and I didn't. I said to him at the time this sounds like a pyramid scheme. It was, he got screwed and lost his money. He ends up suing the people running the scheme, including his brother. Made for an interesting thanksgiving for them all. No one went to jail and he got some of his money back, but wtf? You knew it was illegal going in and then you want the cops to bail you out in the end.

 

Still see him once a year at the races. I always thought he was a knucklehead.

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MLM's are no different than most other sales companies. The problem now is that social media has allowed them to go from face to face sales (which is incredibly scary to most people) to the protected realms of online. A built in "friends" list makes it even easier for people to get started.

 

The whole "pyramid scheme" misrepresentation is nonsense. Most companies have a "pyramid" structure with bosses at the top making more of the company's money based on the work of those beneath them. And just like any other company, you better do your due diligence before getting in bed with anyone asking for money. Some companies are good...some aren't.

 

I could never do it, I just don't like dealing with people enough to ever be in sales (see the pet peeves thread), but I know a girl in Washington who started in one of these companies two years ago to give herself something to do while her husband was on regular deployments. At last check she was making about $350K per year and climbing (yes, she tries to get me to join regularly!). It's not easy money. She works her friggin ass off every single day, but she basically works for herself and gets to live her life the way she wants it. Honestly, sometimes I'm jealous and wish I had the personality to sell. I would love get out of my day to day drudgery, but I know I wouldn't be good at it and I can't afford to fail at a business venture right now.

 

Anyone who craps on MLM as a business model doesn't understand it. It's a legitimate way to make money through sales. Crapping on the output (the non-stop sales on social media) on the other hand is perfectly reasonable. :) One thing that is particularly aggravating lately is being added to sales groups without permission. Anyone who does that to me is blocked outright...family or not.

The rule-of-thumb for me is if a company pushes finding sellers more than pushing its product, it's a pyramid scheme. If a product is so good "it sells itself" then you don't need to convince people to sell it for you, or get them to recruit people to sell.

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MLM's are no different than most other sales companies. The problem now is that social media has allowed them to go from face to face sales (which is incredibly scary to most people) to the protected realms of online. A built in "friends" list makes it even easier for people to get started.

 

The whole "pyramid scheme" misrepresentation is nonsense. Most companies have a "pyramid" structure with bosses at the top making more of the company's money based on the work of those beneath them. And just like any other company, you better do your due diligence before getting in bed with anyone asking for money. Some companies are good...some aren't.

 

I could never do it, I just don't like dealing with people enough to ever be in sales (see the pet peeves thread), but I know a girl in Washington who started in one of these companies two years ago to give herself something to do while her husband was on regular deployments. At last check she was making about $350K per year and climbing (yes, she tries to get me to join regularly!). It's not easy money. She works her friggin ass off every single day, but she basically works for herself and gets to live her life the way she wants it. Honestly, sometimes I'm jealous and wish I had the personality to sell. I would love get out of my day to day drudgery, but I know I wouldn't be good at it and I can't afford to fail at a business venture right now.

 

Anyone who craps on MLM as a business model doesn't understand it. It's a legitimate way to make money through sales. Crapping on the output (the non-stop sales on social media) on the other hand is perfectly reasonable. :) One thing that is particularly aggravating lately is being added to sales groups without permission. Anyone who does that to me is blocked outright...family or not.

This.

The rule-of-thumb for me is if a company pushes finding sellers more than pushing its product, it's a pyramid scheme. If a product is so good "it sells itself" then you don't need to convince people to sell it for you, or get them to recruit people to sell.

Except that's not what a pyramid scheme is...

 

Want to know what a pyramid scheme is? See below...

 

 

30 years ago a buddy of mine tried to get me to go in on a real pyramid scheme that his brother was involved in. The investment was $7000 and you got a great return when other investors got into it.

 

This friend did it and I didn't. I said to him at the time this sounds like a pyramid scheme. It was, he got screwed and lost his money. He ends up suing the people running the scheme, including his brother. Made for an interesting thanksgiving for them all. No one went to jail and he got some of his money back, but wtf? You knew it was illegal going in and then you want the cops to bail you out in the end.

 

Still see him once a year at the races. I always thought he was a knucklehead.

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The rule-of-thumb for me is if a company pushes finding sellers more than pushing its product, it's a pyramid scheme. If a product is so good "it sells itself" then you don't need to convince people to sell it for you, or get them to recruit people to sell.

Then your rule of thumb is incorrect. It's really pretty simple, a pyramid scheme is a specifically defined, illegal action. MLM is a different type of sales technique, and you're perfectly within your right to not join and/or hate everything about the way it works, but at this point you don't really understand how it works, so you're making your judgment in ignorance; of course that's also your right.

 

In my opinion, I'm annoyed by almost all sales techniques. I'm the guy that hangs up on telemarketers mid sentence, pushes past sales people by the kiosks in malls, etc... It all drives me crazy. But that doesn't have anything to do with a business being a "scheme", illegal, or in some way immoral. It's all just different kinds of business.

 

EDIT: BTW, almost nothing "sells itself". There is always some form of advertising, even it's through word of mouth, and that's rare enough in the world of big business.

Edited by Acantha
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Penn and Teller did an episode of their series "Bulls..." on MLMs. I remember it being pretty informative (sorry, no link).

http://youtu.be/ncwj9iZ2oJ0

Then your rule of thumb is incorrect. It's really pretty simple, a pyramid scheme is a specifically defined, illegal action. MLM is a different type of sales technique, and you're perfectly within your right to not join and/or hate everything about the way it works, but at this point you don't really understand how it works, so you're making your judgment in ignorance; of course that's also your right.

 

In my opinion, I'm annoyed by almost all sales techniques. I'm the guy that hangs up on telemarketers mid sentence, pushes past sales people by the kiosks in malls, etc... It all drives me crazy. But that doesn't have anything to do with a business being a "scheme", illegal, or in some way immoral. It's all just different kinds of business.

 

EDIT: BTW, almost nothing "sells itself". There is always some form of advertising, even it's through word of mouth, and that's rare enough in the world of big business.

Penn & Teller humorously disagree. See above. And don't flatter yourself. Maybe it's you that doesn't get it? The difference between most MLM's and a pyramid scheme is the illusion of legitimacy with product and pitch. Really all you are doing is recruiting more sellers. You might as well just be asking for money straight up, ala pyramid.

Edited by PromoTheRobot
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http://youtu.be/ncwj9iZ2oJ0

 

Penn & Teller humorously disagree. See above. And don't flatter yourself. Maybe it's you that doesn't get it? The difference between most MLM's and a pyramid scheme is the illusion of legitimacy with product and pitch. Really all you are doing is recruiting more sellers. You might as well just be asking for money straight up, ala pyramid.

Ah yes, certainly Penn & Teller know all about it. I do in fact know quite a lot on the subject, but honestly I don't care if you believe me more than the comedian magicians. I'm really not trying to sell anyone on MLM, just clarify the inaccuracies in the thread. There are lots of very detailed and informative books on the subject if you have enough interest in it to educate yourself.
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Ah yes, certainly Penn & Teller know all about it. I do in fact know quite a lot on the subject, but honestly I don't care if you believe me more than the comedian magicians. I'm really not trying to sell anyone on MLM, just clarify the inaccuracies in the thread. There are lots of very detailed and informative books on the subject if you have enough interest in it to educate yourself.

Frankly, I trust them more than you.

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