The comprehensive and extremely helpful thread started by SIS on MLM-type scame is now archived. Indeed, all the MLM scam threads except this oneseem to have become archived.
I have two MLM experiences to share. The first one left me unsure exactly what was being peddled as I didn't follow it up to the end. Only after the second one happened and I found out it was a Quixtar MLM scam did I recognize the signature patterns of behavior of the Quixtar "sponsors" (vague about info about the "business opportunity", promises of easy money offered by this "business opportunity", "residual income", talking about job insecurity and trying to make people feel vulnerable, turning up with their spouses, etc etc etc).
It was very strange that both MLM experiences happened with Quixtar "sponsors" who were Indian. As reported in this thread, I believe this is because these Indian guys, being immigrants knowing nothing about scams that happen in the US, were easy targets themselves. These did not seem like the high-end Indian guys though, though they were obviously not low-end either [low end being taxi drivers, mid-level being reasonably well-educated contract workers from Indian companies like TCS, Wipro, Infosys, etc, and high-end being extremely well-educated Indians with MS/MBA/PhD degrees from US universities who are way above the level of people who can be dazzled with promises of "150K per year residual income"].
Indeed both the "sponsors" I met seemed to genuinely believe that they were trying to "start their own business". They both were rather gullible and naive though; I could see that they had fallen for the Quixtar kool-aid hook line and sinker. I asked them questions that they could not answer and had obviously had never thought of. These were questions that anyone looking to "start a business" should think of.
I felt bad for these poor guys. Both were married and one has a very young kid. Their wives seemed very wide-eyed about this whole "business" too.
The first time I was approached was a few years back, in the BART station in the SF Bay Area. The second time I was approached was at a shopping mall in the NYC area.
The first time I met the "sponsor" once. He came to the appointment very late and only out of politeness and curiosity I waited for him. But due to this unpunctuality I had a very bad impression of him from the get-go. After the meeting, which did not impress me as he was being so vague and secretive about everything, I told him I'm not interested. He kept calling me for several months after that. I kept ignoring his calls. Finally he stopped calling.
The second "sponsor" (in NYC) seems less unprofessional (hasn't been late the two times we've met). The second meeting involved me attending their "speaker presentation" at a Comfort Suites in the NYC area. The speaker was another Indian guy; but this guy was a better speaker. In the room were lots of Indians (80% men, 20% women), a couple of African-American guys, an African-American young woman, a middle-aged white guy, a very young white guy (about 19 I'd guess), and a young white guy (late 20's, early 30's).
He asked me to dress formally. I didn't [I don't let secretive and suspicious people with vague "business proposals" to tell me how I should dress]. Most people there were dressed formally.
My "sponsor" said that since Indians are doing this, I should have no worries about doing it, as Indians are very careful and cautious people. Especially Indians with young kids.
I felt bad that so many of them had and were being conned into this scam where 99% of them would lose money (small amounts; a few thousand a year), vast amounts of time, and practically all their friends.
At the end of the presentation the speaker said "Don't talk to anybody about this. Don't use Google. Make your own decision with the facts and figures in our information packet."
The presentation was quite slick. Since 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!!!
Simple way to deal with this bullshit, which I even actually told the "sponsor": "Don't tell me about money any more. One of my cardinal rules in life is that I never allow greed (or fear) to sway me. You talk about money and I'll filter it right out of my decision-making process."
They target people who they think are not affluent and slightly in need of money, who would be easy targets for their "easy money" pitch. And yet have enough money to waste on buying their crap and their "motivational materials".
Very low.
I'm not in need of money by the grace of God, but I'm not very fashion-conscious, so I guess their recruiters ("sponsors") thought I'd jump in joy and join their cult hearing vague promises of easy money.
Anakin
Edit: added names of common MLM scams to title to people can search, as suggested by jayK.
