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Wednesday, April 20, 2011

More about Multi Level Marketing rip-offs

"Who cares about Tiger? He should join Amway, as they also screw anything that moves, and have ripped off millions of people for several decades, to the tune of 10s of billions of dollars. Amway is a scam, and here's why: Amway pays out as little money as they can get away with, so they support the higher level IBOs ripping off their downline via the tool scam. As a result, about 99% of IBOs operate at a net loss, while the top 1% make several TIMES more from their Amway tool scam than from the Amway products. This was made illegal in the UK in 2008, but our FTC is unable to pull their heads out of their butts to stop it here. Read about it on my blog, I suggest you start here: and forward the information to everyone you know, so they don't get scammed."
Thanks for the message Tex.  Your frankness is refreshing.

I regularly have people contact me wanting to get me involved in these get rich schemes.  I think they are more interested in my contacts list than me, actually.  Sadly, I am always a disappointment.

Some of what I have written on the subject of pyramid schemes can be found here:

Readers would not be surprised to learn that I do get hate mail now and then from MLM disciples.

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Owner said...

You may be surprised to learn I'm not anti-Amway. Not that all MLM's are legit, but Amway, when done right, is legit. An IBO can have a pure retail business and make a net profit. An IBO can retail a little and mostly sponsor, and be in a net profit scenario after sponsoring only a few others. However, the vast majority of the upline do NOT emphasize retailing at any level, and make FAR more money from the tools (theoretically designed to sponsor others) than from Amway. Amway wins by not caring whether their prices are competitive or bonuses are fair, because the upline is VERY happy with their tool scam profit.

Doug Baumber said...

Agree totally re some fraudulent network marketing companies such as Goji ,Monavie and another one were they have a titanium patch that cures everything. Fraud is not unique to network marketing. Examples of common fraudsters include teh various medical charity groups such as teh Diabetes Association,Breast Cancer Association, Medical Companies such as Merck who was just fined 2.3 billion for fraud and the manufacturer of Botox for 760 million for making false claims. Prudue was fined in teh criminal courts for 636 million over oxycotin. Right now 40% of US seniors are being defrauded into taking oxycotin as a long term solution to arthritis pain even though it is no more effective than a placebo after 7 days,highly addictive and causes serious health deteriation. Lawyers who pad their bills,Cardiac Surgeons who sucker 85% of their open heart surgery patients into a unnecessary surgery purley for profit. The list goes on. Some of the garbage that some naturopaths push make them as fraudulent as mainstream medicine. I sat at a dinner the other night next to some naturopaths who were selling magic pendants that allowed you to stay fat eat total garbage and sit on your butt and still be healthy.

Not all network marketing companies are fraudulent. Some have high quality products at low prices and yes some succeed and many fail.I built my multi Million Dollar Company up based on Zig Zigglar and Tom Hopkins. Over 90% who buy these books never read them..Are Tom and Zig frauds because people are to complacent to study teh material. I have meet people as young as 23 who are making 85,000 plus from their Amway business. Another couple I know in their 70's lost every thing in the gfc have in less than 2 years developed their income to 80,000 plus. I buy some of their products ..their butter which is the only place I can buy NZ butter,their Peanut butter which is 100% real butter and extra yummy. Their Insurance saves big dollars .a few thousand a year. I make my own cleaning products otherwise I would buy theirs which are actually cheaper than supermarkets. As an example of supermarket fraud. After the recent floods here Coles and Woollies pushed the story that apples were in short supply and sold them for 10.00 a kilo. Friends who own fruit shops were still selling Australian apples at 2.98 a kilo while the big boys were actually selling Chinese apples which cost 2.00 a kilo less than Aussie apples for 10.00 a kilo.

When I had my company I recruited 100 plus people to get 6 people who succeeded and made up to 200,000 a year. Because teh other 94 did not have the gumption to study and become sales professionals did that mean I was being fraudulent . No. I put huge amounts of effort to get people who would succeed in sales.
The Prado principal applies in everything .The top 4% make 64% of the money.the next 16 make 16 % and the bottom 80% make 20% .I was Watching a WW II and guess what 4% of pilot shot down 64% of teh enemy planes. Just because Joe Blow has failed at Amway does not make it a fraud , A young lady I know has after just three months even with a newborn baby being able to quit her day job. I do not do network marketing, do buy same companies products but have friends who make 100,000 plus in these businesses. Fraud is not unique to network marketing.Because someone has not been able to suceed at it does not make it a fraud.


Anonymous said...

nice post......

Syntol said...

Great post, And i think your sms is help other