- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
0
Posted on 11/8/16 at 5:38 pm to Tiger in NY
quote:
ALmost every one I've ever heard of made a big focus on recruiting immigrants and promising them the American dream. Easy pickins.
My SO is Slavic. Lots of people in the Slavic community fall for this shite. It's really sad, but they also go for other stupid shite too like mega churches, home remedies, conspiracy theories, and young earth creationism.
Posted on 11/8/16 at 6:37 pm to RabidTiger
quote:
Everyone I've met that's into that shite also goes to a mega church.
It's called affinity fraud. The fraudster preys upon members of identifiable groups, such as religious or ethnic communities, language minorities, the elderly, or professional groups. The con-man is or pretends to be a member of the group, and they often pay or snooker a preacher/leader to vouch for how awesome they are.
Utah, because of how trusting Mormons are of each other, has some of the most investment fraud in the country due to this.
It works for selling shitty stocks or investments (e.g., Madoff and Jewish community) or pitching MLM programs.
Fleecing the flock
The big business of swindling people who trust you; Economist article
SEC warning of affinity fraud scams
Wikipedia list of major affinity fraud scams
Posted on 11/8/16 at 6:45 pm to vandelay industries
I've heard some of the companies mentioned in this thread, but not all. The company that recruited my friend in college was called Melaluca. I think they're still around...
Posted on 11/8/16 at 6:53 pm to SabiDojo
quote:
I'm not saying it's not shady or a bad idea, but MLM isn't a pyramid scheme.
Did you watch the video in the OP?
Posted on 11/8/16 at 7:18 pm to wildtigercat93
quote:
Did you watch the video in the OP?
I honestly didn't, but if it's about MLM's that sell actual products, then it's not a pyramid scheme.
Posted on 11/8/16 at 7:23 pm to SabiDojo
Watch it and then get back to me. They sell products but the revenue does not come from selling the products, the revenue comes from signing up new members below you...ala a pyramid scheme
The quote the federal trade commission was "these businesses were not found to not be a pyramid scheme"
They are every bit a pyramid scheme as any.
The quote the federal trade commission was "these businesses were not found to not be a pyramid scheme"
They are every bit a pyramid scheme as any.
Posted on 11/8/16 at 7:27 pm to wildtigercat93
The problem is that there IS an actual product. There is no house of cards. It DOES have value. Is it exaggerated? I'm sure, but that doesn't make it a pyramid scheme. It may look like one, but it's not. A pyramid scheme has NO value other than what is acquired from investors. There is nothing. That's not the case with MLM's.
Posted on 11/8/16 at 7:40 pm to SabiDojo
You sound like the creator of a MLM tbh 
"It has all the characteristics of a pyramid scheme and is just as harmful...BUT technically it's not not a pyramid scheme!"
ETA definition of a pyramid scheme: A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services.
The only difference is they use a product to sell the scheme and once the users find out they can't money that way they tell them that the way to make money is recruit others
"It has all the characteristics of a pyramid scheme and is just as harmful...BUT technically it's not not a pyramid scheme!"
ETA definition of a pyramid scheme: A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services.
The only difference is they use a product to sell the scheme and once the users find out they can't money that way they tell them that the way to make money is recruit others
This post was edited on 11/8/16 at 7:42 pm
Posted on 11/8/16 at 7:42 pm to wildtigercat93
I'm just saying if we are being literal, it's not a pyramid scheme. I guess I'm just tired of society changing the meanings of words just to achieve a goal.
Do they seem shady? Oh yeah, but they aren't a pyramid scheme.
Do they seem shady? Oh yeah, but they aren't a pyramid scheme.
Posted on 11/8/16 at 9:20 pm to SabiDojo
I almost did the Cutco knife thing in undergrad. Is that a pyramid scheme?
Posted on 11/8/16 at 9:23 pm to biglego
I know exactly what you're talking about and, no, technically it's not.
Posted on 11/8/16 at 9:52 pm to SabiDojo
They're technically not pyramid schemes in the way OJ was technically not guilty.
Posted on 11/8/16 at 10:16 pm to vandelay industries
It seems y'all don't understand the nature of the pyramid scheme. It's completely unsustainable as an enterprise. That's NOT the case with MLM's. It's why so many of them can last decades.
Posted on 11/9/16 at 8:22 am to SabiDojo
quote:
A pyramid scheme has NO value other than what is acquired from investors. There is nothing. That's not the case with MLM's.
The SEC has a slightly different view:
quote:SEC publication: Beware of Pyramid Schemes Posing as Multi-Level Marketing Programs
some MLM programs are actually pyramid schemes -- a type of fraud in which participants profit almost exclusively through recruiting other people to participate in the program.
Posted on 11/9/16 at 8:25 am to Twenty 49
"Posing as" is the key phrase.
ETA: lol and read your own link. The very first thing to watch out for is "no genuine product or service."
ETA: lol and read your own link. The very first thing to watch out for is "no genuine product or service."
This post was edited on 11/9/16 at 8:27 am
Posted on 11/9/16 at 8:30 am to SabiDojo
quote:
It seems y'all don't understand the nature of the pyramid scheme. It's completely unsustainable as an enterprise. That's NOT the case with MLM's. It's why so many of them can last decades.
Define unsustainable. The newer participants go into debt taking on inventory worth a fraction of the purchase price - and to get money back you have to rope friends or family into the same unsustainable situation. The nature of math (and limited number of people on earth) make it impossible for the next level or two of people to even break even either.
None of that seems sustainable for the participants anywhere other than at the top. If you want to argue it is sustainable because the guys at the top make money? Well... that's only true in the sense that a con man also operates a sustainable business when he moves from town to town looking for new marks.
Posted on 11/9/16 at 8:38 am to molsusports
quote:
Pyramid schemes quickly become unsustainable.
One person recruits 10 other people to participate in a "no-fail investment opportunity."The 10 recruits each pay the recruiter $100.The recruiter now tells them to go out and recruit 10 more people to do the same.If each recruit is successful, they'll all end up with $900 in profit from a $100 investment.
Sounds simple enough, but here's the problem: Let's say the initial 10 recruits each find 10 more people. Those 100 new recruits will have to find 10 recruits each to make $900. That means they have to find 1,000 people willing to sign up for the program. And if they somehow find 1,000 people, that next level of the pyramid will need to sign up 10,000 to make a profit. Eventually, there won't be enough recruits at the bottom of the pyramid to support the level above it. That's when the pyramid topples and everyone at the bottom loses their investment.
This post was edited on 11/9/16 at 8:38 am
Posted on 11/9/16 at 8:57 am to SabiDojo
My focus was on the part that said "participants profit almost exclusively through recruiting other people". That allowed for some product sales value, but not a genuine business-sustaining product program, and it's still a pyramid.
Pyramid or no, under whatever definition, almost all MLMs are fricking scams that prey on people.
A turd is a turd, even if someone chooses to call it another name.
Pyramid or no, under whatever definition, almost all MLMs are fricking scams that prey on people.
A turd is a turd, even if someone chooses to call it another name.
Posted on 11/9/16 at 9:06 am to molsusports
quote:
Define unsustainable. The newer participants go into debt taking on inventory worth a fraction of the purchase price - and to get money back you have to rope friends or family into the same unsustainable situation. The nature of math (and limited number of people on earth) make it impossible for the next level or two of people to even break even either. None of that seems sustainable for the participants anywhere other than at the top. If you want to argue it is sustainable because the guys at the top make money? Well... that's only true in the sense that a con man also operates a sustainable business when he moves from town to town looking for new marks.
Hell, just do the math when you divide the company's annual revenue and the number of "distributors" in said company. Supposedly Herbalife is in the ballpark of $3.5 billion annually, and have approx 3.5 million worldwide distributors. Straight up, that comes out to $1000/yr per person, and that doesn't include the money that they spent back into the company (often exceeding that amount), nor does it include the salaries of the CEO and the other 7,000 salaried employees. So that $1000 number is actually a generous estimate. Some make more than that, alot more make less...but if time is money, it's pretty clear that this is a big waste of time for 97% of the people involved.
Not sure why people get so fixated on the "$3.5 billion" stat, without looking at how many people were necessary to accomplish that....
Page 4 of 6
Popular
Back to top
Follow TigerDroppings for LSU Football News