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Current MLM Scams Thread: Quixtar, Amway, Primerica, Mary Kay etc Archived From: Finance

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kamalktk said:RationalCrust said:
Interestingly, another MLM that pushes blueberry juice has recruited him with lots of $$$.

goji juice?

No, a different juice.

I had never heard of goji juice until I just Googled it.

Another juice with extraordinary claims. Oh goody.


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RationalCrust said:I have a relative who has done very well financially in a MLM.

He beat the odds and made it into the top tier of a telephone/communications MLM.

Your relative probably would have been successful in any sales job. I think a lot of MLMs are designed to make people think its very easy and the money will be falling like rain (just look out for Pacman Jones), but the fact that your relative made it speaks to his selling skills and persistance.

Most people are not cut out for MLM, but the ones that succeed are probably succesful types that would have succeeded in other endeavors if they had chosen to go a different route.


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ArbolLoco said:RationalCrust said:He drives an incredibly nice car (I think it's called a Maybach -- or something like that)Fatwallet Rule 269: Just because someone drives a car, doesn't mean they can afford it.


Ain't that the truth -- especially in MLM's where 'fake it till you make it' is standard operating procedure.

In the case of my relative, I know him well enough to know that he is no longer faking it. He makes legitimate big $$$.

-------

About a lifetime ago I was sucked into a MLM called USA (United Sciences of America)...it had Joe Montana, Chris Evert, William Shatner, a bunch of PhD's and other big names involved... at the time, it was very convincing. It crashed and burned..

http://www.mlmwatch.org/04C/USA/usa.html

But I digress.


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these ponzi schemes are selling "hope"...thats why a lot of people fall for it. how much are you willin to pay for "hope" of a better life a better future for you and your family. Its sad that people fall for it but think about it this way if you were down on your luck ie unemployed or massive debt. and somebody came along with a solution to all your problem i guess some people just want to believe things will be better. fyi I am not endorsing ponzi schemes, I am just trying to analyze why someone who has reasonable logic can fall for it. I haven't but my roommate did. when he told me about "usana" i knew it but I didnt want to beat him down. He seemed so happy and optomistic. I did give some words of caution but I knew it was useless to talk him out of it.


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"hope" is the kind interpretation, lazy and greedy the less charitable.


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quickfingerz said:I HAVE NEVER participated in an MLM. But I am fully supportive of MLM's. Yes, MLM are really recruitment tools. Typically 80% of a MLM company's revenue is from recruiting new members & current members buying their own products.Directly from the FTC website:

Some multilevel marketing plans are legitimate. However, others are illegal pyramid schemes. In pyramids, commissions are based on the number of distributors recruited. Most of the product sales are made to these distributors - not to consumers in general. The underlying goods and services, which vary from vitamins to car leases, serve only to make the schemes look legitimate.


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Legitimate separates scam from scheme, but the product is *always* overpriced, or just plain crap.


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I had a similar experience, back in 2001. A newly acquainted guy was very friendly and always helpful. One day he told me about his scheme and making thousands of dollars extra income. I attained presentation expecting to hear business plan. All I saw there were some impressive presentations and how some of them made more than 100K/year. I was impressed and tempted to be honest. Then the guy came to my home and asked for $250 for initial investment for material and merchandise. By that time I had started thinking and asked him some questions which he could not answer. Then he brought his superior and he could not answer the questions either. Finally I refused to give him any money and the ‘friendly and helpful’ guy turned in to a complete stranger. He would not even look at me since then. Well, at least I didn’t lose any money.

From there on if anybody I meet in some Mall or in FRY’s starts talking about making extra money in spare time, I just say ‘have good day sir’ and start walking.


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GreatestGambler said:

From there on if anybody I meet in some Mall or in FRY’s starts talking about making extra money in spare time, I just say ‘have good day sir’ and start walking.

I just like the way you talk to random people at the Mall and FRY's. I usually don't talk to anybody.


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I ended up going to a primerica thingie once since I got a call from a friend of mine who worked for them telling me they had a "job fair" turned out to be you can get rich blah blah blah..They never called it MLM until some woman went upto one of the people and asked what's the difference between this and marykay. They didn't answer.


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retire35 said:GreatestGambler said:

From there on if anybody I meet in some Mall or in FRY’s starts talking about making extra money in spare time, I just say ‘have good day sir’ and start walking.


I just like the way you talk to random people at the Mall and FRY's. I usually don't talk to anybody.

Almost every time the other person starts conversation. Probably 'they' are always looking for somebody to sell their scheme.


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Trinidon2k said:My brother has a PhD and he does that Market America bullcrap. He pretty much made it his full time job. I can't have friends or family come to the house without him trying to sell them crap or get them to be his business partner.

It's sad that someone so smart can be so foolish.

PhD is not equal to smartness. I wish a PhD boss be a smart person (I mean, who is not street smart but think smart), alas, it is not!
On a side note, always stay away from any freindly indian guy in a mall. Every tiem, I tried to be a friendly person, I was drawn into the B'crap of business proposal. Now, I always hand them my Stanaphone number.
Back in grad school, we had friend that everyone wants to avoid becuase he was doing that quick* thingy that time. It was miserable to even have a drink with him without listening to the greatness of his company's great bosses.


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RationalCrust said:ArbolLoco said:RationalCrust said:He drives an incredibly nice car (I think it's called a Maybach -- or something like that)Fatwallet Rule 269: Just because someone drives a car, doesn't mean they can afford it.


Ain't that the truth -- especially in MLM's where 'fake it till you make it' is standard operating procedure.

In the case of my relative, I know him well enough to know that he is no longer faking it. He makes legitimate big $$$.
No doubt, those at the top of the MLM pyramid make great money.

The "fake it till you make it"mentality is actually what gets a LOT of the non-top-tier MLM recruits in trouble. They run out and lease BMWs and Mercedes and try to give the APPEARANCE they are doing well, when reality is they are drowning in MLM-related debt.

A Maybach is certainly a nice car, and also an easy way to "fake" extreme wealth - If he was making just $6-10k/month in the MLM, a $3000/month lease for a ultraluxury car is not out of the ordinary to project his wealth toward others -isnt much more than any other marketing expense. They spend a huge % of their MLM money on marketing.


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sensia said:Trinidon2k said:My brother has a PhD and he does that Market America bullcrap. He pretty much made it his full time job. I can't have friends or family come to the house without him trying to sell them crap or get them to be his business partner.

It's sad that someone so smart can be so foolish.

PhD is not equal to smartness. I wish a PhD boss be a smart person (I mean, who is not street smart but think smart), alas, it is not!
On a side note, always stay away from any freindly indian guy in a mall. Every tiem, I tried to be a friendly person, I was drawn into the B'crap of business proposal. Now, I always hand them my Stanaphone number.
Back in grad school, we had friend that everyone wants to avoid becuase he was doing that quick* thingy that time. It was miserable to even have a drink with him without listening to the greatness of his company's great bosses.

Maybe PhD's are especially susceptable to these schemes because they are smart and hence have smart friends who went into more lucrative professions while they spent their past 5 years or so earning a meager stipend.


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*science* PhD's who get into MLMs ? Hard to believe.


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RationalCrust said:kamalktk said:RationalCrust said:
Interestingly, another MLM that pushes blueberry juice has recruited him with lots of $$$.

goji juice?


No, a different juice.

I had never heard of goji juice until I just Googled it.

Another juice with extraordinary claims. Oh goody.

Could this be the one?

Mmmmm


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Anyone have info on E.Excel? My parents have been buying their products for me and I'd hate it if they are wasting money on some over-hyped pseudo-scientific rubbish.


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potollomuck said:Anyone have info on E.Excel? My parents have been buying their products for me and I'd hate it if they are wasting money on some over-hyped pseudo-scientific rubbish.Yep, MLM garbage. Nice website though.


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cola262 said:sensia said:Trinidon2k said:My brother has a PhD and he does that Market America bullcrap. He pretty much made it his full time job. I can't have friends or family come to the house without him trying to sell them crap or get them to be his business partner.

It's sad that someone so smart can be so foolish.

PhD is not equal to smartness. I wish a PhD boss be a smart person (I mean, who is not street smart but think smart), alas, it is not!
On a side note, always stay away from any freindly indian guy in a mall. Every tiem, I tried to be a friendly person, I was drawn into the B'crap of business proposal. Now, I always hand them my Stanaphone number.
Back in grad school, we had friend that everyone wants to avoid becuase he was doing that quick* thingy that time. It was miserable to even have a drink with him without listening to the greatness of his company's great bosses.


Maybe PhD's are especially susceptable to these schemes because they are smart and hence have smart friends who went into more lucrative professions while they spent their past 5 years or so earning a meager stipend.

I don't think any of the other people at that "speaker presentation" were well-educated at all; leave alone having PhD degrees. Some of them even looked like they might easily have been working as restaurant waiters, gas-station attendants, or suchlike. No disrespect intended for the latter.

The young white guy (late 20's, early 30's) seemed very smart and well-educated from his responses (to the speaker who was constantly asking biased and one-sided leading questions trying to get people to answer in ways that would help his "case"); all the rest seemed naive, fearful, easily over-awed, and impressionable. None of those are qualities one develops by getting educated.

Most of the people seemed college students or people currently in not-too-good financial circumstances seeking better opportunities. They are being recruited to make Quixtar founders and top-level honchos rich by selling overpriced and crap shampoos and soap to their friends and family.

They were obviously targeting vulnerable people. I would like to see the people behind Quixtar and similar MLM scams go to jail. Unfortunately they may never be made to pay, as their immoral activities are unfortunately not illegal. Legality is always an approximation to morality.

Anakin

 

PS: some quotes:
speaker: "each friend you recruit is worth half a million dollars to you. i will show this with math. but first, can you name people you know you could recruit for your team?"

he asked people randomly and each provided a name. I was hoping he wouldn't ask me, but he did. I said point-blank "I usually don't involve people I know into something I don't know yet." [this was before he had said anything about the "business opportunity"; not mentioned Quixtar yet.] Everybody laughed and the speaker tried to ignore the comment and move on.

Another time he asked me "Is Google a search engine or a research engine?" implying that we should not search for Quixtar on google and see the negative comments on it. He asked me, expecting I'd say "search engine", so he could then say that we shouldn't research Quixtar with Google.

I said "depends on how you use it."

He never got the answers he was looking for from me.

By the end of the "presentation" I was feeling rather pissed off.

When my "sponsor" told me "this is a job that does not require any skills and you can make so much money", I said "if it does not require any skills why would the guy flipping burgers at McDonald's be any worse than you at this?"

he was stumped.

Then he said I could save 80 bucks a month by getting 32% Quixtar IBO (independent business owner) discount on the $250 I "would spend on household items anyway". I then asked him why Wal-Mart Target and Costco would be willing to lose sales to Quixtar and not lower their own prices to compete.

He could not answer.

But he still did not wake up. He's either really stupid, or really invested in this.


Quixtar was mentioned at the very end, and very defensively. We were asked repeatedly to "keep an open mind" and "not talk to anybody", "not use google", and "make our own decision" using only the material they would provide to us.

This seems to indicate that the scam is almost ending. They are running out of fresh people wjp haven't heard of Quixtar. Quixtar has already decided to phase out the Quixtar name and resurrect the Amway name in America.

Amway has been banned in China. Amway offices have been raided and shut down in several states of India.

But will they go to jail?

Edit: added details.


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SUCKISSTAPLES said:anakinskywalker said:I had already seen SIS's thread about MLM scams and Quixtar, I was not moved by their pitch at all, but if I hadn't I might have gotten a bit confused at least initially with all those promises of easy money. Though I'd like to think that I'd never have fallen for a scam like this [what is the value proposition? what is the business model? what is the value chain? who are the major players?] after all the business classes I took while getting my PhD, thanks SIS for making it so much easier for me to discard all the bullshit they threw at me!!!


If I have helped just one person to spot/avoid wasting money on an MLM, then Ive done my job. Ive considered reviving the MLM threads, but they always degenerate when the MLM believers start posting.

Glad you didnt lose any money on this BS

Thanks SIS!!!

I was telling my fiancee just a few days ago that FWF is such an incredible resource; a couple of hours I spent a few years ago reading up on your original MLM scam alert thread (linked in OP) just saved me so much hassle trying to see through the Quixtar propaganda and hogwash. You are an incredibly awesome person for having made reasonably finance-savvy people out of so many smart but previously-financially-unaware-and-therefore-clueless people like me. [I'm sure there are many hundreds like me on FWF.]

To keep the cycle of good karma flowing, whenever I see a friend who is financially-unaware but willing to learn, I refer them FWF and tell them to look for and read your posts (including those by didYOUsearch). (and also some of the posts by DaveHanson et. al.) Three years ago terms like 401(k), IRA, etc were financial mumbo-jumbo to me; nowadays I enthusiastically explain things like the math involved in choosing between traditional and Roth IRA's etc to many of my friends. This is all made possible by the incredibly informative and instructive personal finance material created by the FWF community, led primarily by you. Thank you!

May you continue to improve lives like you do through your great work on FWF for many more decades to come.

Anakin


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