Wednesday, January 14, 2009

What is a pyramid scam?

What’s the difference between a true network marketing business and a scam?

Let’s look at some definitions.

1. If the person at the bottom of the pyramid has no possibility of making money without recruiting other people or begging for money, it’s illegal.

2. If a person receive money for nothing from something that looks like a program or business, it’s probably illegal.

3. If there is no product or service or other item of value changing hands in exchange for money, it’s probably illegal.

4. If you have to continously recruit other people in order to earn money, it’s probably illegal.

These are the main one I can think of, the list can go on and on.

Now let’s look at some existing scams.

The “gifting club’ “Gotcha”

People pay to join a “gifting club” billed in promotional materials as a private club with members eager to help new friends. In reality this clubs are illegal pyramid scams. New members give cash gifts to older members with the promises that if they get new members they will in turn “cash in” far more then what they entered the club. The problem is that to succeed more and more new members must be recruited to keep the pyramid alive. When the club doesn’t attract anymore members it collapses. Most members who paid to join the clubs never receive the financial “gifts” they expected, and lose everything they paid to join the club.

Our friend and mentor Michael Dlouhy Wrote a power book “success in 10 steps” outlining the “5 pillars” a system has to have to be viable and profitable. This e book is available for FREE, no charge.

http://morelifeforall.successin10steps.com

Any multi-level system that pay commission for recruiting people is known as “pyramiding” Why “pyramiding” don’t work? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people — except perhaps those at the very top of the pyramid — lose their money.

It is sometime very difficult to identify a scam from the real thing. There is people out there known as the “heavy heaters” they present well, speak with eloquence, lay out amazing plans and capture people’s attention with a snap of the fingers. Hungry prospects fall all over themselves with anticipation of fast and enormous profits only to find out that they have been taken to the cleaner. So how to avoid the “trap” Simple check them out over and over. Well this going to take time…Yes it will… so the easiest way is to educate yourself and that doesn’t take much time. Go to the site download the e book read it get back to us for a question and answer period. From beginning to end what? 6 to 8 hours maybe?

http://morelifeforall.successin10steps.com

Let me tell you a real story.

A few years ago my wife and I were invited to a dinner party. Great it’s free dinner. During the meal a presentation was made offering huge discount on vacation time share all over the world. Beautiful presentation with videos of far away beaches. Marvelous sun sets. Captivating moments at sea. You name it they had it all. For a low investment of $ 15,000 this amazing package actually worth more then $50,000 was made available to us guaranty. Out of 14 couples 12 bought in. We didn’t and we were for ever thankful when less the one year later the company went into bankruptcy and most people lost all the money invested. I have personally witnessed a few more of these. The sad part of the story is that a few months after another similar program came to town and guess what? Most of the same people bought into it again… Amazing isn’t it?

Another one was a spa club buy a lifetime membership for $800.00. Three month latter the doors are locked the equipment gone and so is the money invested.

The same scenario takes place with internet marketing. Every day I receive in the average 15 to 25 offers everyone better then the other. Strangely enough when digging in I realized that it was the same “heavy hitters” promoting the different programs. And they are making millions.

Would you like to keep your feathers intact? I am warning you before you “buy” in any offer on the internet or anywhere. Read Michael’s book. It will save you years of frustration and a pile of money. And it’s FREE.

Well there is a risk you might enjoy the book and decide to join us at Mentoring For Free. It could change your life.

And that’s a risk. But hey is your life perfect now? Are you totally and fully happy? Do you own your life?

Ok!!! Download the e book. Read it. And if you don’t like it well just email me and just let me have it… I can’t promise your money back it was FREE to start with….

http://morelifeforall.successin10steps.com

Love visiting with you. Anytime.

Bernard Tritz

Mentoring For Free

www.morelife4all.com/blog

bernardt@shaw.ca

250 6658 6703 Anytime And I mean it…

No comments: