A Pyramid By Any Other Name Will Still Come Tumbling Down Home Business Articles | November 28 Cheap Willie Snead IV Jersey , 2001 "Three Days, Three People, Retire in 30 ... no mistake, People will start BEGGING you to sponsor them in!Take a look at this Income ... Chart: Level | # of Days | # ... | Income
"Three Days, Three People, Retire in 30 days!
Make no mistake, People will start BEGGING you to sponsor them in!
Take a look at this Income Projection Chart:
Level | # of Days | # Benefactored | Income Projection
Days add up in a hurry and so does your downline!"
OK people ... I know how tempting this looks but REALITY check time. This is but one example of a number of "wealth generation programs" currently being touted online. The idea is that you must find three people who want to join this program, you pay $20 to "benefactor" each of them into the program (for a total "investment" of $60) and you're set for life. Oh, and you have to do it in three days. Each of your three, if they are to remain in the game and thereby derive the same wondrous riches from the program as you, must also find three people, benefactor them into the program (again within three days) and their three must find their three in three days and so on.
And, because non-performers are booted from the program Cheap Za'Darius Smith Jersey , so the theory goes, the only people getting paid are the ones actively benefactoring in their own recruits, each of whom down the line contributes their "investment" of $60.
THE "PRODUCT"
The product each person gets for their $60 (because this is NOT, of course, a PYRAMID SCHEME - banish the thought!) is:
"Software entitled "Building an MLM Empire using the Internet", in which you Own Full Licensed Retail Rights to Market the software. Retail Value $29.95 All Sales Are Final-No Refunds!"
OK, three points on the "product".
First Cheap Matt Skura Jersey , your investment is $60. The product is worth (let's give them the benefit of the doubt) $29.95. HELLO!? But you get RESELL RIGHTS!, I hear you protest. That makes it more valuable than just the purchase price of the product itself. Oh yeah? Well, you HAVE to be able to sell the product otherwise the whole scheme ... er ... program would be nothing more than a wealth distribution arrangement wouldn't it? And that's against the law, and we couldn't have that.
Second, this is not "software", it's an e-Book.
Third, the title of the e-Book deviously and insidiously implies a relationship between this "wealth creation program" and MLM (multi-level marketing). MLM is a different thing altogether. For a more detailed explanation of what MLM is and what it is not Cheap Ty Montgomery Jersey , read "Not MLM! ... Why ever not?" at http:www.ahbbonotmlm .
'WEALTH CREATION' PROGRAMS
OK, so what about these "wealth creation programs" then? Sounds like a great idea, right? Everybody wins! Well, think about this ... if everyone goes out and gets three people who each have to throw $60 into the pot for their three, everybody up and down the line has effectively contributed $60 and that's all there is in the pot. How do you get more than your $60 back?
Ahah! you cleverly point out, those who don't recruit ... er ... "benefactor in" ... er ... SELL (yeah, that's it Cheap Maxx Williams Jersey , SELL) the "product" to their three gets dropped, don't they, so now the $20 their benefactor contributed for them to join the program is still in the pot but they're not. They've forfeited their investment. THAT'S how we make money.
OK! Very good. I can see you're paying attention. Just one, teensy little problem with this brilliant plan.
It's B.S.. It's a pyramid scheme and it's ILLEGAL.
PYRAMID SCHEMES VS. LEGITIMATE MLM
In her prepared statement to the International Monetary Fund's seminar on "Current Legal Issues Affecting Central Banks" in May 1998, Debra Valentine, General Counsel for the U.S. Federal Trade Commission, had this to say about pyramid schemes:
"What is striking about these schemes is that while they are very old forms of fraud Cheap Ronnie Stanley Jersey , modern technology has vastly multiplied their potential for harming our citizens. The Internet in particular offers pyramid builders a multi-lane highway to world-wide recruits in virtually no time.
"What is a Pyramid Scheme and What is Legitimate Marketing?
"Pyramid Schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell- tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading [recruits are forced to buy more product than they could possibly sell] and a lack of retail sales [sales are made only between people inside the pyramid, not to the public in general - sound familiar?]. ...
"[P]yramids are quite seductive because they may be able to deliver a high rate of return to a few early investors for a short period of time. Yet, .. pyramid .. schemes are illegal because they inevitably must fall apart. No program can
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