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Multi-level Marketing/Pyramid Schemes

56,571 Views | 297 Replies | Last: 6 yr ago by IrishTxAggie
TommyGun
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AG
I had a friend at A&M whose dad gathered all of her phone contacts so he could send out texts to each one of us and pitch an Amway opportunity. I had never met the guy and only talked to his daughter a few times before that. Some of these folks have no shame whatsoever.
AggieRAGE
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RF are the FB posts that annoy me the most. Especially because all of the women signed up under that person start commenting on how wonderful the product is which bumps the post all over my feed.

The only MLM that seems to have stood the test of time so far seems to be Mary Kay.
Aggie09Derek
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AG
Lots of kids in Tyler are all over Kyani. It's like a mini cult.
IrishTxAggie
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Did you bang his daughter?
IrishTxAggie
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AG
Avon could probably go up there with Mary Kay.
Wyoming Aggie
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quote:
I had a friend at A&M whose dad gathered all of her phone contacts so he could send out texts to each one of us and pitch an Amway opportunity. I had never met the guy and only talked to his daughter a few times before that. Some of these folks have no shame whatsoever.


That's because most the people who think they can get rich through MLM are losers. They don't really have any marketable skills to speak of so they have to hustle and take advantage of people.

I'd disown any friend or family member that ever came to me with a MLM scheme. Complete losers.
treetop flyer
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Do time shares fall under this category?
Zemira
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AG
I haven't ever sold anything. I don't think anyone would buy from me.

My sister on the other hand didn't intend to sell Mary Kay but she does. I guess she started about ten years ago because she liked the product and wanted to make some money. She doesn't have a Facebook page and sends an email to her clients a few times a year. She does well because a customer uses up a product and then reorders. She used to do parties, but doesn't much anymore because she's got an 8 year old. Most of her business is repeat sales or other people's clients who sold for a year and quit so they came to her. She does have a few people under her so that helps.

I think if she had the time she could make decent money, but mainly it is extra household income. I think she made it farther than she ever thought, but she doesn't have visions of pink Cadillacs.

If think 95% of the companies are overpriced scams. If you like the product and use a lot of it, be a consultant or whatever, probably makes it cheaper. I like Mary Kay, Scentsy, and Pampered Chef. I admit I am a girl so I'd probably buy what they are selling someplace else.

Jamberry is apparently super popular but I think it sounds stupid. If I am going to get my nails done I am going to pay someone else to do it. I got invited to 4 different parties for it last year and asked them to not invite me again.
The Original AG 76
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A couple years ago it seemed like a ton of our friends in the Houston area fell for the electricity provider scam. It started by getting a call from a dear lil old lady friend of ours who simply asked " who do you use for electricity?". In a de-regulated area thats a pretty common question and I thought it was just another of her please help me questions....NOPE after I answered she stared in on the sales pitch for some damn re-seller. Had to hurt her feelings by telling her NO. We actually lost few minor friends over this crap. I eventually started to just tell them that I got my juice for damn near free thru my employer , complete fabrication but they were not savvy enough to figure it out.
Don't even get me started on the miracle bracelets, noni juice or vita-pacs......
And I have to admit. I've never heard of most of the scams you guys have been discussing. I watched that video and what struck me was that ,even after watching it ,I had NO IDEA what that stuff was they were selling. Never heard of it.
I hate the fact that these pyramid schemes prey on the feeble minded and can cause friends and even relatives to split.
Dr. Doctor
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IIRC, most MLMs are pyramid schemes, but Mary Kay and potentially Avon aren't considered, by the FTC.

The main criteria is the uplift; how much of your sales goes to people above you. In Avon/MK, it only goes up 3 levels, then stops, with diminishing returns. So if you are 4 levels away from a new person, you aren't getting any money from them.

There are a couple of really long ppt from Pershing Capital about Herbalife if you want to read about it (Herbalife being a massive MLM). I think they have shorts on the company, so it is more of a 'trying to cause it to fail to make money' angle, but their presentations show the full range of how MLMs work, if you're interested.

~egon

Edit:

Links!

Original Presentation

Resource library
Wyoming Aggie
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AG
quote:
A couple years ago it seemed like a ton of our friends in the Houston area fell for the electricity provider scam. It started by getting a call from a dear lil old lady friend of ours who simply asked " who do you use for electricity?". In a de-regulated area thats a pretty common question and I thought it was just another of her please help me questions....NOPE after I answered she stared in on the sales pitch for some damn re-seller. Had to hurt her feelings by telling her NO. We actually lost few minor friends over this crap. I eventually started to just tell them that I got my juice for damn near free thru my employer , complete fabrication but they were not savvy enough to figure it out.
Don't even get me started on the miracle bracelets, noni juice or vita-pacs......
And I have to admit. I've never heard of most of the scams you guys have been discussing. I watched that video and what struck me was that ,even after watching it ,I had NO IDEA what that stuff was they were selling. Never heard of it.
I hate the fact that these pyramid schemes prey on the feeble minded and can cause friends and even relatives to split.


I hate it too. I was perusing around Kyani pictures at some of these massive seminars they hold all over the country to recruit and you can just tell that 80-90% of the audience is just the bottom of the barrel.
Wyoming Aggie
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AG
Kyani is actually a pretty damn ****ty company to me. These "successful" guys talk about their "teams" and "helping people" yet all you see of them online is them living these really extravagant lifestyles. And you have the underlings of the company basically hero worshipping them like they could be them someday.

It's all just a front.
BustUpAChiffarobe
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quote:
Kyani is actually a pretty damn ****ty company to me. These "successful" guys talk about their "teams" and "helping people" yet all you see of them online is them living these really extravagant lifestyles. And you have the underlings of the company basically hero worshipping them like they could be them someday.

It's all just a front.


Obviously this guy isn't making as much as a NEUROSURGEON every fortnight. KYANI! KYANI!! KYANI!!
Wyoming Aggie
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quote:
quote:
Kyani is actually a pretty damn ****ty company to me. These "successful" guys talk about their "teams" and "helping people" yet all you see of them online is them living these really extravagant lifestyles. And you have the underlings of the company basically hero worshipping them like they could be them someday.

It's all just a front.


Obviously this guy isn't making as much as a NEUROSURGEON every fortnight. KYANI! KYANI!! KYANI!!


That made me bust out laughing for some reason. It must be early.
Furlock Bones
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AG
quote:
My wife uses the Kyani stuff and it's really helped with some health problems she had. She sells it now but is smart enough to know that she doesn't need to move up the pyramid, she just does it as it's something she likes and can make a little side money.

I'm not really a fan of it, but outside of a one time spend (which has been recouped) it hasn't cost us anything else

That being said, she doesn't promote any of the BS make 6 figure ads of anything like that. She recognizes that for what it is.


So what is it? Vitamins? Juice?cleanse?
gougler08
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AG
quote:
quote:
My wife uses the Kyani stuff and it's really helped with some health problems she had. She sells it now but is smart enough to know that she doesn't need to move up the pyramid, she just does it as it's something she likes and can make a little side money.

I'm not really a fan of it, but outside of a one time spend (which has been recouped) it hasn't cost us anything else

That being said, she doesn't promote any of the BS make 6 figure ads of anything like that. She recognizes that for what it is.


So what is it? Vitamins? Juice?cleanse?


Some mix of vitamins and juice. Really helped with some digestive issues she had. Sure it's just a scam for the most part but it's been beneficial for her when other meds didn't work so I'll take it
Aggie09Derek
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AG
Does she do the whole triangle of health or just take one of the supplements?
gougler08
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AG
quote:
Does she do the whole triangle of health or just take one of the supplements?
She does the whole triangle of health. A couple folks just by one of the supplements from her, specifically the nitric oxide if they are in to running / working out
Bitter Old Man
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AG
Juice Plus is another one. Its a pill that contains all the health benefits of like 8 glasses of every vegetable on the planet juice everyday.... WE know a seller of it, and she will openly say that it cures everything. My daughter has some actual health problems (not a cold) and this stupid B started in on my wife about her Snake Oil while at church. My wife almost punched her in the face. I wish she had of....
dreyOO
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Reason # 564 not be on Facebook

#565 is seeing a bunch of gross pics of womens s**** guts as they sell "wraps" to each other
BustUpAChiffarobe
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I think the most predatory sales pitch I ever went to was cleverly marketed as a "Day of Power" or something like that. I had gotten free tickets to a "convention" at the Toyota Center which featured speakers such as Colin Powell, Rudy Guiliani, Sarah Palin, Mike Ditka, and a few other presentations I'd never heard of. The first couple of speakers were good, and it was all very red blooded, rah-rah America, stuff. The lady who put the conference on (with her husband) gave a moving testimony about how she was a crack addict, and on the street, but through her faith in God and the American dream was now a millionaire.

THEN the sales pitches started. $12,000 for trading software which heavily intimated 80% monthly gains and 7 figure annual income. They kept interspersing random bits of Christian or Patriotic sound bites; which were so blatantly obvious but the crowd ate it up. There were people weeping as one of the presenters gave away his pamphlet on how to make millions flipping houses to a disabled vet, and a single mother. They all used the line "Could I have kept this information to myself and made a billion dollars? Yes, but my master isn't of this world, and I am my brother's keeper; so for only $4,999 you can buy this dvd series on how selling blown glass trinkets in your spare time will make you a millionaire".

The saddest part were the very genuine, very gullible low-education masses with their "United We Stand" Shirts giving away all of their savings to the guys on the stage. I was really surprised that Colin Powell, Palin, and others had gotten roped into it.

EDIT: Found an article about it, the "Get Motivated" Seminar series

http://usatoday30.usatoday.com/money/media/2010-09-28-getmotivated28_ST_N.htm
jac4
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AG
quote:
Juice Plus is another one. Its a pill that contains all the health benefits of like 8 glasses of every vegetable on the planet juice everyday.... WE know a seller of it, and she will openly say that it cures everything. My daughter has some actual health problems (not a cold) and this stupid B started in on my wife about her Snake Oil while at church. My wife almost punched her in the face. I wish she had of....


I think I know this person and my wife had the same experience (mutiple times).
SECond2noneAgs
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AG
quote:
I think the most predatory sales pitch I ever went to was cleverly marketed as a "Day of Power" or something like that. I had gotten free tickets to a "convention" at the Toyota Center which featured speakers such as Colin Powell, Rudy Guiliani, Sarah Palin, Mike Ditka, and a few other presentations I'd never heard of. The first couple of speakers were good, and it was all very red blooded, rah-rah America, stuff. The lady who put the conference on (with her husband) gave a moving testimony about how she was a crack addict, and on the street, but through her faith in God and the American dream was now a millionaire.

THEN the sales pitches started. $12,000 for trading software which heavily intimated 80% monthly gains and 7 figure annual income. They kept interspersing random bits of Christian or Patriotic sound bites; which were so blatantly obvious but the crowd ate it up. There were people weeping as one of the presenters gave away his pamphlet on how to make millions flipping houses to a disabled vet, and a single mother. They all used the line "Could I have kept this information to myself and made a billion dollars? Yes, but my master isn't of this world, and I am my brother's keeper; so for only $4,999 you can buy this dvd series on how selling blown glass trinkets in your spare time will make you a millionaire".

The saddest part were the very genuine, very gullible low-education masses with their "United We Stand" Shirts giving away all of their savings to the guys on the stage. I was really surprised that Colin Powell, Palin, and others had gotten roped into it.

EDIT: Found an article about it, the "Get Motivated" Seminar series

http://usatoday30.usatoday.com/money/media/2010-09-28-getmotivated28_ST_N.htm


By "roped into it," you mean "cashed a fat paycheck" like these folks do for every other event they do on the speaking circuit.
BustUpAChiffarobe
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AG
Yeah, I wondered about that, how much do you think they got paid for the 20 minute speech? 50K? 100k? This was back in '09 at the height of Palin pandemonium, so I bet she got a pretty big payday
Wyoming Aggie
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AG
quote:
I think the most predatory sales pitch I ever went to was cleverly marketed as a "Day of Power" or something like that. I had gotten free tickets to a "convention" at the Toyota Center which featured speakers such as Colin Powell, Rudy Guiliani, Sarah Palin, Mike Ditka, and a few other presentations I'd never heard of. The first couple of speakers were good, and it was all very red blooded, rah-rah America, stuff. The lady who put the conference on (with her husband) gave a moving testimony about how she was a crack addict, and on the street, but through her faith in God and the American dream was now a millionaire.

THEN the sales pitches started. $12,000 for trading software which heavily intimated 80% monthly gains and 7 figure annual income. They kept interspersing random bits of Christian or Patriotic sound bites; which were so blatantly obvious but the crowd ate it up. There were people weeping as one of the presenters gave away his pamphlet on how to make millions flipping houses to a disabled vet, and a single mother. They all used the line "Could I have kept this information to myself and made a billion dollars? Yes, but my master isn't of this world, and I am my brother's keeper; so for only $4,999 you can buy this dvd series on how selling blown glass trinkets in your spare time will make you a millionaire".

The saddest part were the very genuine, very gullible low-education masses with their "United We Stand" Shirts giving away all of their savings to the guys on the stage. I was really surprised that Colin Powell, Palin, and others had gotten roped into it.

EDIT: Found an article about it, the "Get Motivated" Seminar series

http://usatoday30.usatoday.com/money/media/2010-09-28-getmotivated28_ST_N.htm

That's disgusting. With my short fuse, I'm not sure I wouldn't have got up and shouted something pretty colorful towards the stage.

There's a special place in hell for folks like that. If "The Purge" ever became a real thing in this country, I think those guys would be the first ones I'd go after.
SECond2noneAgs
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AG
quote:
Yeah, I wondered about that, how much do you think they got paid for the 20 minute speech? 50K? 100k? This was back in '09 at the height of Palin pandemonium, so I bet she got a pretty big payday

I have no clue how much those folks would have pulled in for an event like that, but if we figure about $50K (considering someone like Hillary regularly pulls $250K for speaking events), then it only takes selling 10 of those $5K "life-changing" packages to break even. Considering they held the event in a huge stadium (Reliant?) that held who knows how many thousands of people, I'm guessing it wasn't too difficult to pay all these speakers to come give their speeches and still make an ish ton of money. They know what they're doing.
Pasquale Liucci
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AG
The only people I know that sell Kyani are the dipsh**s from my hometown. They all have a couple things in common:

- Total d0uchebags who peaked junior year of HS
- Sub 90 IQ
- Have never held a steady job
- Total aversion to hard work

There's one that is the worst as far as d0uchiness, the sleazeball Dallas club promoter type, who brought it to our hometown and recruited all his window licker friends there (the above described folks). Him and one other who are the top of the pyramid are exactly as others have described. They boast about how they are "business owners" and "entrepreneurs" and helping to make people healthier. They use all the stupid ass buzzphrases that low information people eat up like "residual income" and "paid for dream cars".

If it wasn't so pitiful it would be funny.
SECond2noneAgs
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AG
Also, I constantly hear on the Houston radio channels (mostly 97.5) ads to learn how to flip houses and make thousands of dollars a month using other people's money. What a deal.
LostInLA07
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AG
The thing is, just about anyone could actually pull that off with the way the Houston housing market has been the last few years. I suspect a lot of people have built up false confidence and are going to be caught holding the hot potato here fairly soon.
The Original AG 76
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AG
quote:
I think the most predatory sales pitch I ever went to was cleverly marketed as a "Day of Power" or something like that. I had gotten free tickets to a "convention" at the Toyota Center which featured speakers such as Colin Powell, Rudy Guiliani, Sarah Palin, Mike Ditka, and a few other presentations I'd never heard of. The first couple of speakers were good, and it was all very red blooded, rah-rah America, stuff. The lady who put the conference on (with her husband) gave a moving testimony about how she was a crack addict, and on the street, but through her faith in God and the American dream was now a millionaire.

THEN the sales pitches started. $12,000 for trading software which heavily intimated 80% monthly gains and 7 figure annual income. They kept interspersing random bits of Christian or Patriotic sound bites; which were so blatantly obvious but the crowd ate it up. There were people weeping as one of the presenters gave away his pamphlet on how to make millions flipping houses to a disabled vet, and a single mother. They all used the line "Could I have kept this information to myself and made a billion dollars? Yes, but my master isn't of this world, and I am my brother's keeper; so for only $4,999 you can buy this dvd series on how selling blown glass trinkets in your spare time will make you a millionaire".

The saddest part were the very genuine, very gullible low-education masses with their "United We Stand" Shirts giving away all of their savings to the guys on the stage. I was really surprised that Colin Powell, Palin, and others had gotten roped into it.

EDIT: Found an article about it, the "Get Motivated" Seminar series

http://usatoday30.usatoday.com/money/media/2010-09-28-getmotivated28_ST_N.htm
These are just a step below all of those "self help" seminars. Zig Ziegler, Tony Robbins ( I think that the name of that smiling giant jackass) all of those motivational speakers pablum that sales mangers make their drones attend......
I love to look at the films of the audiences at these events then go dig up old Nuremberg Rally films. ( or for that matter look at Joel Ostend's crowds on Sunday TV) ..Its the exact same mesmerized mindless looks, same lost and lonely yet now saved face. Really..go check it out !
Satellite of Love
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quote:
Juice Plus is another one. Its a pill that contains all the health benefits of like 8 glasses of every vegetable on the planet juice everyday....
That must be one huge ass pill!!! No way they could make it even remotely swallow-able.
Billy Baroo
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AG
quote:
I watched this video on Kyani's business opportunity last night, and I was practically laughing at the end. I mean, who could possibly buy into this idea?

I finally watched the video posted on page 1 and it's hilarious to me that in a 9:55 video, they show their product for 9 seconds (I'm assuming it's the juice thing since I don't know). Also, I started cracking up when they showed their business model and it was literally a green pyramid.

On the other hand... That Double Red Diamond program does seem pretty legit. Would be nice to pay cash for that yacht and laugh at all those suckers that went to medical school as I pull in their annual salary in one month.
SECond2noneAgs
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AG
quote:
The thing is, just about anyone could actually pull that off with the way the Houston housing market has been the last few years. I suspect a lot of people have built up false confidence and are going to be caught holding the hot potato here fairly soon.

I don't doubt that people can make some good money flipping/renting houses, I know plenty of people doing it myself. The commercials are of the "contact us today for your totally free guide on how to make a living flipping houses" variety, and they come across very scammy.
Wyoming Aggie
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AG
quote:
quote:
I think the most predatory sales pitch I ever went to was cleverly marketed as a "Day of Power" or something like that. I had gotten free tickets to a "convention" at the Toyota Center which featured speakers such as Colin Powell, Rudy Guiliani, Sarah Palin, Mike Ditka, and a few other presentations I'd never heard of. The first couple of speakers were good, and it was all very red blooded, rah-rah America, stuff. The lady who put the conference on (with her husband) gave a moving testimony about how she was a crack addict, and on the street, but through her faith in God and the American dream was now a millionaire.

THEN the sales pitches started. $12,000 for trading software which heavily intimated 80% monthly gains and 7 figure annual income. They kept interspersing random bits of Christian or Patriotic sound bites; which were so blatantly obvious but the crowd ate it up. There were people weeping as one of the presenters gave away his pamphlet on how to make millions flipping houses to a disabled vet, and a single mother. They all used the line "Could I have kept this information to myself and made a billion dollars? Yes, but my master isn't of this world, and I am my brother's keeper; so for only $4,999 you can buy this dvd series on how selling blown glass trinkets in your spare time will make you a millionaire".

The saddest part were the very genuine, very gullible low-education masses with their "United We Stand" Shirts giving away all of their savings to the guys on the stage. I was really surprised that Colin Powell, Palin, and others had gotten roped into it.

EDIT: Found an article about it, the "Get Motivated" Seminar series

http://usatoday30.usatoday.com/money/media/2010-09-28-getmotivated28_ST_N.htm
These are just a step below all of those "self help" seminars. Zig Ziegler, Tony Robbins ( I think that the name of that smiling giant jackass) all of those motivational speakers pablum that sales mangers make their drones attend......
I love to look at the films of the audiences at these events then go dig up old Nuremberg Rally films. ( or for that matter look at Joel Ostend's crowds on Sunday TV) ..Its the exact same mesmerized mindless looks, same lost and lonely yet now saved face. Really..go check it out !

You kind of get the same vibe when you look at the Facebook profiles of the "big dogs" in Kyani. You have all their knuckledragging followers slobbering all over their knobs on Facebook. Referencing them as their "Mentors" which is another rich term that they like to use almost as though they invented it.

You can find pictures of these seminars (which obviously take place in hotel conference rooms like all these scams do) and you can see all their faces. Let's just say it's clear from those in attendance that this isn't a Mensa meeting.

Kinda sad really to see these people being preyed on.
Satellite of Love
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Came across a youtube video of a woman who uses Kyani AND it cured her MS!!! Holy crap, how is this ground breaking product not being pushed to ALL people with MS???
 
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