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Pyramid Schemes


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"the more people you sign up and get them to sell, the more money you will make"

 

 

The flat out illegal scams aside, there are a ton of these organizations around these days and they all work on the same principle that CBF nailed above. My wife's cousin is now doing one for skin care products and trying to recruit everyone to sell it. The 'change my life' nonsense is the just the marketing b.s. they are told to repeat.

 

So can someone make money? Sure, if they have the drive and personality to push others into selling for them and recruiting even more sales people. It's a hell of a lot easier to pull in a commission from all the sales people you recruit than it is to go out and hump the individual sales yourself. But most people who are really good at those skills are already higher up on the food chain or working in a W-2 job that requires the same skills.

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I used to be really close with a friend of mine. But now I avoid him in the store because I don't feel like listening to his scheme. And how he can cut my start up fee (what respectable job has you pay them to start) in half from $400 to $200.

 

Oh, I don't know, how about every single job that requires a 100k piece of paper (degree) to even get an interview when you could, in reality, learn the skills necessary on the job much, much faster and more efficiently.

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Pretty much any business on the face of the planet requires start-up costs. This should not be a surprise to you.

 

He's not talking about start-up costs, though. He's talking about paying a company a fee for nothing more than the right to do business under that company's aegis.

 

So the correct answer is: any franchise requires franchise fees.

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He's not talking about start-up costs, though. He's talking about paying a company a fee for nothing more than the right to do business under that company's aegis.

 

So the correct answer is: any franchise requires franchise fees.

 

Indeed...although I sort of thought that went without saying (as in, it's under the umbrella of start-up costs).

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Indeed...although I sort of thought that went without saying (as in, it's under the umbrella of start-up costs).

 

Yeah, I guess it kind-of does. I didn't think that through completely.

 

But clearly it didn't go without saying, since he didn't understand it. (And not unreasonably, since I doubt most people understand anything about franchising anyway. Because if they did, they probably wouldn't invest in MLM schemes.)

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Yeah, I guess it kind-of does. I didn't think that through completely.

 

But clearly it didn't go without saying, since he didn't understand it. (And not unreasonably, since I doubt most people understand anything about franchising anyway. Because if they did, they probably wouldn't invest in MLM schemes.)

 

Sure they would...low investment + consistent effort over a period of years is much more achievable in the average Joe's mind than the gigantic investment + hiring a business manager that a traditional franchise requires.

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