Reputation: 22
Pyramiding, Multi-Level Marketing a Scam?
Flames or not, any opinion about this matter is appreciated. A lot of my friends are joining this kind of "business" model, but then when I researched the history of this kind of networking, I thought, "The guy on top is laughing his *** off while we work" something like that. Is it really a scam or what?
Reputation: 10
In my opinion its not much of a scheme.
I mean yes, the person on top makes a lot more money, however they aren't scamming you out of your money. They don't even state anything like you guys get equal pay etc, its just you get paid whatever, and they get paid more.
I wish I knew how to do it, id be living life. LOL.
Reputation: 193
It's not illegal when there's a product involved.
It can work, it's just a matter of how well you can sell whatever it is you're trying to sell and convince people to do the same. It's all about screwing the lower levels to earn more for yourself.
Reputation: 372
Pyramid schemes are illegal(at least in most countries), and it's illegal for a good reason.
A simple google search reveals why:
The thing you people are talking about is not pyramid schemes - it's multilevel marketing."A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without any product or service being delivered. The FBI considers pyramid schemes a form of fraud.[1]"
It functions similarly in principle, but it is not a scam, because a product is actually being sold and delivered.
The Common Sense United Front
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Reputation: 22
The way I look at it, whenever there's a product involved, it somehow creates a "loophole" that makes it legal. But then behind that multi level marketing, is actually a pyramid scheme, is that right?Originally Posted by hian
I'm sorry if i'm asking too much questions, but wouldn't it be MORALLY wrong? Just wanna clear things up.
Reputation: 372
No, because if a product is involved, everyone is getting what they paid for(although the top gets more).
(Well, yes, the systematic enrollment of new members etc, remains the same, but if a product is involved people are actually paying for something, rather than nothing)
For it to be a pyramid scheme, not multilevel marketing(which is what most people are talking about here), it has to, by definition, be a matter of fraud.
Nobody is getting tricked in multilevel marketing, they're just being stupid by taking part in a structual marketing strategy that in reality doesn't pay as much as it seems. At worst, if you're unable to sell your product, you've just wasted a lot of money.
However, you still have the product which you paid for, and you can still redeem our money if you manage to fullfill your quota.
If it was indeed a pyramide scheme, you'd be left without cash, without any product, and knee-deep in shit.
As for whether it is morally wrong:
I wouldn't ask that question if I were you, since anyone willing to answer in moral absolutes, usually don't give very good advice to begin with.
I'd say this though; A guy who creates a pyramid scheme to exploit others and acquire money, is a douchebag.
A person who takes part in multilevel marketing to make a quick buck, to me, is no different than the people who do phone-sales or work for TV-shop.
The Common Sense United Front
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Reputation: 677
And how is the price of a product calculated objectively? Not at all.
That makes bringing up a "product" kinda pointless.
Who wants to be a salesman anyways?
Reputation: 27
Multi-level marketing is a hoax, the likeliness is you'll end up with a lot less money than you started with.
From what I've read, in most cases you have to pay for a starter kit, which is usually a fairly substantial amount of money, and then you have to sell the product by throwing some shindigs in which you will have to provide out of your own pocket food, drink or any of the above to the guests. Then you want to try and recruit as many as you can and hypothetically they'll do the same and you'll reap the rewards.
Realistically you could be putting in 60 hours a week of work in doing this and throwing the parties etc. and you'll still be earning less than someone doing the same hours working at somewhere minimum wage.
Reputation: 677
There is no such thing as an "actual transaction".
Knowhow can be a product, just like a service can be.
I don't know, if we are really talking about the same thing, but the definition is extremely flawed.
To rephrase:
It's not possible in any way to qualify any act, as a valid transaction or not. The only thing that gives a transaction quantitative validity is the exchange of currency. The properties of the product in the transaction are not relevant, if someone is willing to pay money.
Reputation: 467
biggest crock of sh*te ever. total scam because you have to work your *** off.
there will always be one or two people who say "omg i earned dollaz!!!!"
but thats like taking the advice of one guy who says that dachau is a really really nice place to have a shower whilst ignoring the other 5,999,999 who had a pretty sh*t time there (albeit only for a short time until they were turned into soap)
theres always gonna be a miracle story but generally pyramiding is a pile of cr*p but people sell it as a great idea because the more people THEY get on board then the easier it is for them.
dont get sucked into it bro, trust me.
Reputation: 372
So you're saying it's impossible to fake a transaction?
Please demonstrate? If I pay you for a product/service, which I in turn do not
recieve, is that not by definition in invalid transaction?
Irrelevant. I've never said that knowhow cannot be a product. Furthermore, it is irrelevant because it does not change the fact that taking money without completing the terms of a transaction, is fraud.
Definition of what?
This paragraph makes no sense. And the last part of it merely restates what I said in my last post, which is exactly why the point in your first post was moot.
A valid/invalid transaction exists whether you like it or not.
You qualify transactions by looking at whether terms of the transaction are met or not upon completion.
Value is subjective, but when a transaction is planned, a value is set for the product/service in question. If payment is not met upon taking/recieving the product/service, it is considered theft. If the product/service is not provided upon reciveing payment, this is also theft.
Both apply to the example of fraud.
In a pyramid scheme, the promised service/product is not delivered, which is why it is considered fraud.
In multi-level marketing, a product/service is provided. It might not be much, and it might not be to the satisfaction of the customer, but it is within the confines of the legalities concerning trade.
I'm not sure where you're trying to get with your comments.
I'm merely stating the facts concerning the difference between the two concepts.
The Common Sense United Front
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Reputation: 347
Yea, from what you read. Why do you even join this topic if you have never made any personal experiences with it? Pretty pointless imho.
I have only worked a few hours a week with a pretty cheap starter package and could have made alteast 1,500 a month without a normal job.(It was too time consuming). And thats only by completing and forwarding orders for new customers or people 'below my marketing level'.
The thing with multilevel marketing is, you'll need alot of connections and friends to be successful, which i had.
It's different because there are so many products. Selling perfumes was hilariously easy, it's much harder to sell cosmetics for example
In multi-level marketing, a product/service is provided. It might not be much, and it might not be to the satisfaction of the customer, but it is within the confines of the legalities concerning trade.
That's right. A smart person can make ******ingly high amounts of money with MLM
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