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Pyramid scheme or MLM?


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Has anyone here had any of their friends or family brainwashed by any of these "companies"?

 

A buddy of mine was talked into "working" for one of these and hasn't been the same since. If you say anything slightly bad about the scheme he flips out and goes into this ridiculous defense of the place. They convinced him that anyone that doesn't want to invest or talks bad about the scheme is out to destroy "his business".

 

He talks like he reads off a script given to him by the scheme. It's like talking to a call center in India.  Most of the stuff he says he has no idea what he's talking about, it's just stuff that sounds expensive.  

 

We have showed him reviews of the place online that all say the place is a scam but he won't hear any of it. What can we do to convince him he's been brainwashed.

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I’ve worked as an accountant on the prosecution and the other side for these. 

 

It’s hard to bring them down, especially if they have an actual product that is apparently the backbone of the business 

 

hope it ends out okay

 

 

Edited by row_33
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What do they do to people? It's like the guy switched bodies with his sponsor. His way of speaking, writing, and language all changed after a couple classes. Went from family first to screw them my business is the most important thing in the world and youre a loser if you think other wise. It's like a cult.

Edited by Not at the table Karlos
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Sounds like a religion.  A friend of mine who I had helped out a lot got religious and their church was really big on "recruiting".  We told him we had no interest but we still wanted to be friends but he was brainwashed into thinking those who do not convert are evil or something and wanted nothing to do with us.  Funny it was not bad when I helped him out and he never thought of repaying me to get debt off his soul.

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10 hours ago, row_33 said:

I’ve worked as an accountant on the prosecution and the other side for these. 

 

It’s hard to bring them down, especially if they have an actual product that is apparently the backbone of the business 

 

hope it ends out okay

 

 

They sell life insurance and other "good products that help people out" they don't know what the other good products are though. The main way to make money is by getting people to pay to join your "business" or team. He's convinced that he started his own company. 

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When the OP did not identify the company, my prediction was Asea. They are selling salt water as a panacea to correct a multitude of health problems. Their marketing group is very careful about the claims they make but their seminars, media, & material is well developed. It is amazing to me that people would believe salt water could cure anything. But they are many desperate people and the placebo effect can be strong. 

https://sciencebasedmedicine.org/asea-still-selling-snake-oil/

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My parents (well mainly my evil stepmother) got caught up in a weird pyramid scheme about 10 years ago.  It was for some phone company that was based in NC, IIRC.  My stepmother pissed off a lot of her friends and family members trying to coerce them to switch their phone service.  I was in grad school, and I remember having to attend one of their “parties” for which a “representative” of the company pulled into the driveway in his BMW with his $2000 suit.  Gave his sales pitch to myself and a few other people my stepmother lured in.  It was weird and cultish *****.  My parents were pissed at me for not getting involved.  IIRC, they lost a bunch of money.  We don’t talk about that at family gatherings ?

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I have an old high school friend who is also a current FB friend.  It's all he posts about.  Zeal.  Some magic coffee. Something different every year, or so.  He likes to call it, "residual income," then proceeds to try to make everyone who doesn't climb aboard look like an idiot.

 

He spends all sorts of money going to big, "conventions," and brags about living the good life due to his "residual income."

 

He does own/operate a successful painting business.  But he also has a wife who is a teacher, which takes a lot of pressure off whilst playing Ralph Kramden.

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1 hour ago, Not at the table Karlos said:

They sell life insurance and other "good products that help people out" they don't know what the other good products are though. The main way to make money is by getting people to pay to join your "business" or team. He's convinced that he started his own company. 

 

yikes, better to be selling a health supplement or laundry detergent (ahem....)

 

hope he was one of the original founders, they make a lot of $$$

 

sorry to hear this, tough on the people around someone who gets into this suddently

 

 

28 minutes ago, Johnny Hammersticks said:

My parents (well mainly my evil stepmother) got caught up in a weird pyramid scheme about 10 years ago.  It was for some phone company that was based in NC, IIRC.  My stepmother pissed off a lot of her friends and family members trying to coerce them to switch their phone service.  I was in grad school, and I remember having to attend one of their “parties” for which a “representative” of the company pulled into the driveway in his BMW with his $2000 suit.  Gave his sales pitch to myself and a few other people my stepmother lured in.  It was weird and cultish *****.  My parents were pissed at me for not getting involved.  IIRC, they lost a bunch of money.  We don’t talk about that at family gatherings ?

 

it triple sucks when they combine it was a church membership list....

 

 

 

 

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1 hour ago, Johnny Hammersticks said:

My parents (well mainly my evil stepmother) got caught up in a weird pyramid scheme about 10 years ago.  It was for some phone company that was based in NC, IIRC.  My stepmother pissed off a lot of her friends and family members trying to coerce them to switch their phone service.  I was in grad school, and I remember having to attend one of their “parties” for which a “representative” of the company pulled into the driveway in his BMW with his $2000 suit.  Gave his sales pitch to myself and a few other people my stepmother lured in.  It was weird and cultish *****.  My parents were pissed at me for not getting involved.  IIRC, they lost a bunch of money.  We don’t talk about that at family gatherings ?

 

There was a great story from about 30 years ago when long distance phone service was opened up to competition and there were salesmen calling up people people left and right to try to get them to switch.

 

A guy got a hold of various lists of church members and would call them up. The conversation went something like this:

 

Church Member: Hello?

Salesman: Hi, Mrs. AAA. This is Rev. BBB. I had lunch last week with your pastor Rev. CCC and he suggested that I call you. Oh, my other phone just rang. Can I place you on hold and get back to you in 10 seconds.

Church Member: OK.

Salesman: (10 seconds later) Sorry, Mrs. AAA - that was my Bishop on the other line and I need to talk to him.. Call I call you again tomorrow? 

Church Member: Sure.

 

After a couple of months, the church members found out that their phone service had been switched to a new higher-priced long distance service (and the salesman got a commission each time).

 

So what happened?

 

Well, the long distance service that they were switched to had the name of "Holy Order Long Distance".

 

In short, "H.O.L.D."

 

So when the salesman asked if you could be put on "hold" and you said yes, you gave your permission to be placed on "H.O.L.D" and have your phone service switched.

 

 

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3 hours ago, row_33 said:

 

yikes, better to be selling a health supplement or laundry detergent (ahem....)

 

hope he was one of the original founders, they make a lot of $$$

 

sorry to hear this, tough on the people around someone who gets into this suddently

 

 

 

it triple sucks when they combine it was a church membership list....

 

 

 

 

How does this happen overnight? He was normal one day and a company bot the next. It's like a weird movie or he's possessed.

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4 hours ago, Gugny said:

I have an old high school friend who is also a current FB friend.  It's all he posts about.  Zeal.  Some magic coffee. Something different every year, or so.  He likes to call it, "residual income," then proceeds to try to make everyone who doesn't climb aboard look like an idiot.

 

He spends all sorts of money going to big, "conventions," and brags about living the good life due to his "residual income."

 

He does own/operate a successful painting business.  But he also has a wife who is a teacher, which takes a lot of pressure off whilst playing Ralph Kramden.

Yeah my buddy is doing this after a week. Acts like he's this big financial wizard now and he's so successful after going to a class or two for a couple hours. Belittled his entire family saying they're broke and against him because they won't buy in. Broke people are losers to him. 

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41 minutes ago, Not at the table Karlos said:

How does this happen overnight? He was normal one day and a company bot the next. It's like a weird movie or he's possessed.

 

they tapped into his inner greed very effectively?

 

i had friends working a decent plumbing job one day and the next they were quitting, all they had to do was convince 2 large companies to switch over to a new phone system and they could be set for life off it...

 

don't know what to tell you.....

 

 

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