The Dream Scheme Part 5: If You Think It's a Scam...

I saw this saying (without Leo) on a t-shirt an MLMer I personally know wears.

If you think it's a scam; I still get paid.
If it's too good to be true; I still get paid.
If you join me; we both get paid.
If you don't join me; I still get paid.
Whatever you decide, I still get paid!


So what this is telling me, is that the wearer doesn't care if it's a scam as long as he/she gets paid. There's not a denial of it being a scam. Just a boast that they are getting paid for something that could very well be a scam and an invitation to join in on the scam.

Very Interesting.

As for me, I think I'll just avoid the scam all together - even if it means I don't get paid. I'm kind of funny that way.

By the way, does Leo Dicaprio know that MLM's are using him?

The Dream Scheme Part 4: Those Sales Tactics

Ways to Reel Them In:

1. Invite your victim friend over for dinner. Make sure you let them know their company is sincerely wanted. Give them a really nice dinner, then show them your "opportunity". They will be ever so grateful.

2. Invite them out of an evening of fun. Tell them it's a surprise. Then take them to an opportunity meeting. Surprise! They will be so grateful.

3. If you have houseguests, sit them down for an evening of fun and games. Then bring out the "opportunity". They will thank you for it.

4. While talking to friends, aquaintances and co-workers watch for magic words or phrases. If someone mentions that they are looking for a job, looking for another way to make money, wish they could find something different, or lamenting about not having enough money, these are cues to introduce them to the opportunity. If your product is health food you can also listen for mentions of desire to lose weight, eat healthier or feel better. These are important keys to let you know that this person is ready for the "opportunity". So keep your ears open. Especially watch out for the words - cancer, diet, tired, pms, or doctor.

5. Make sure when you share the opportunity that you let them know it's a "new" business model. It isn't, but they don't have to know that.

6. Never, ever let them know up front what it is. Tell the it's a business opportunity. Don't say it's multi-level marketing. You might even consider not letting them know what business it is.

7. Tell them they hardly have to work. Well, tell them that initially. Once they're signed up, then tell them that they have to put their all into it.

8. Make sure you advertise all over the internet. When someone does research on your company you want to be sure they have trouble finding anything negative. Everything that comes up about your company should be positive. If everyone in the company pitches in and does this, then everything that pops up on google will be positive.

9. Only give out links to positive endorsements. You don't want negative Nellies around. We have spent a lot of money on these endorsements. Use them.

10. Do not focus on the start up costs. Every business has start up costs. Focus on how much they will make. Do not get into finances except showing them one of your checks from the company. Finances come later after they've signed up.

11. Tell them how much freedom you have and how many vacations the people above you take. Tell them about the successes in the company.

12. Memorize the lines and answers we give you. We know what works. Stick with the script.

 Special instructions for health food industry:

13.  Emphasize how healthy everything is. Even if it's loaded with ingredients that don't sound like real food, assure them that it is real food. Remind them that they "are what they eat" and people who don't eat healthy are not good people.

14. If they complain about the food and that it makes them feel sick, or that they don't like it, then tell them it's the toxins working their way out of their bodies, and once they get used to the food they will love it! It's the toxins that prevent them from liking the food and it's the toxins making them sick, not the food.

*****

Note: Most people in an MLM are sincere. They believe in what they're doing. They are victims of a scam. Most of them have no idea when they say their lines, that the lines are used by other MLM's and have been used for years. They think it's original. They often think that their MLM is a new forward and upcoming business model that no one has done before. Those that figure it out may be hesitant to leave because they've already sunk in thousands of dollars and might be too embarrassed to admit they were wrong. Some of these people have experienced mild success but haven't been honest with themselves about the money spent to reach this success. Financial success is figured out by checks coming in - not balanced by money going out. Success is also figured out by levels reached - often determined by how much is spent.

All businesses have the potential to fail. But MLM's are set up for failure where only a small number of people will succeed - just enough to convince people that they too can succeed. MLM's can't succeed to the extent that they promise - or everyone would be in one and there would be a glut on the market which will result in failure.

If you need to join an MLM to purchase the product at a reasonable price, it's a pyramid scheme. If the emphasis is on the business and not on the product, it's a pyramid scheme. If they are not up front with you about the product or the business, it's a pyramid scheme. If someone is cryptically referring to their business and not saying what the business is, it's a pyramid scheme - they are waiting for you to ask so they can introduce you to the opportunity. If after purchasing product you are pressured to introduce the product to others - it's a pyramid scheme.

Real businesses, although friendly to other similar businesses, do not want everyone else to have the same business. Competition is healthy to a certain point. It's why you can have a McDonalds, a Taco Bell, an A&W and a Wendy's all within walking distance (or even the same corner), but you won't find two McDonalds side by side. McDonalds won't do that to their owners. It's not good for business. But that's what MLMs do. They won't open a brick and mortar business, but the whole set up requires you to introduce the opportunity to your friends, acquaintances and neighbors which means that you will all be selling the exact same thing to many of the same people. It's like having a bunch of McDonalds on the same block. You will find with many MLM's, clusters of people doing the same thing in the same physical area.

It just doesn't work.

The Dream Scheme Part 4: Show Me the Money

In one of the Facebook groups I'm in the subject of MLM's (multi level marketing businesses) came up.

Don't do it. If someone approaches you with one - run. Run far away.

I've posted before on this subject. If you look at the sidebar there's a whole section on it. Here, I won't make you go find it. I'll link you over.



The Dream Scheme Part 1: Want To Make a Fortune?
The Dream Scheme Part 2: Do the Math
The Dream Scheme Part 3: What's an MLM?

There's a fascinating book on it. The Merchants of Deception tells the true story of a guy who was a high ranking distributor in Amway. You can even read it for free!

Penn and Teller did a show about MLM's. The show with the name I don't like to put on my blog. But
if you go to Youtube and look up Penn and Teller Easy Money you'll find it. Warning: Unnecessary full frontal nudity and unnecessary bad language. Just letting you know before you head on over and then come back in tears saying "why didn't you tell me about the naked people, now I'll be scarred for life!" I have no idea what naked people have to do with MLM's. It's unlikely  you will come across an MLM that will require nakedness. Although the show focuses on an MLM that sells sex. Oh yeah, another warning. Now I know some of you are really intrigued and have headed over before reading to the end of this paragraph.

If you are approached by someone about an MLM they will show you how much money they or someone they know (know as in know of) have made.

The number will likely be impressive. This will be a number that the company has put on a cheque for them.

What they won't show you is how much they spent to get that cheque.

In order to get a cheque the company has to make money. So often the distributor has sent them a cheque not only from selling the product - if they sold any product - remember an MLM isn't about selling product - but also any difference that they have to make up between the sales and the quotas.

In order to maintain a level a distributor has to send in a minimum order. If they haven't made much for sales they still have to place the order. So that comes out of their pocket.

Distributors are strongly encouraged to invest in training supplies and go to conferences - which may be in distant cities.

And lets not forget basics to sell the product - like gas to get there, or other expenses. For instance if you're in a party MLM that sells cooking supplies, you have to buy the food to cook with. You may be required to provide free gifts to get bookings. You may have to dress a certain way. As you move up the ladder (if you do) you will be expected to live the lifestyle.

Debt awaits you my friend. So before you accept that income cheque as gospel, ask them how much goes out of the business. It's a fair question because every business has expenses.

I bet they won't know.

But remember, they'll tell you, it's not about the product. It's about the people. Focus on getting people not product and the money will come.

Yeah, from the people who are buying product just to stay in the business.

Frankly I've never been able to figure out how spending ten bucks on a tube of toothpaste to get fifty cents back makes you money.

Someone show me the money.

The Dream Scheme Part 3: What's an MLM?

"Hey, are you busy Tuesday night?" my friend asked.

"I have to separate Legos from potato chips in my son's room, but if you've got a better offer I'm game," I said.

"I'll pick you up at 6:30," she said.

"What are we doing?" I asked.

"It's a surprise."

I love surprises. If people want to surprise me then I'm all for it. Was it a new place for dinner? A movie? A concert?  Or something really cool and unique like dance classes with male models.

My friend picked me up and drove a half hour to the city. We pulled into the parking lot of a hotel and I followed her through the lobby to a meeting room. She paid some money to a woman sitting behind a table and we found seats near the front. By this time I was getting suspicious but I was still hoping for a comedy show, or maybe it would be a motivational speaker. After all, this was my friend and you give friends the benefit of the doubt. Like when they tell you that you are totally an awesome singer and you should try out for American Idol. You should completely believe that and be shocked when the judges throw you out of the audition room.

It was a motivational speaker all right. A guy motivated to have everyone join Quixtar which is a division of Amway. He wasn't even all that cute.

I would have gotten up and walked out but I had no car. I had no way of getting home. I contemplated using my thumb, but warnings of hitch-hiking ran through my head because everyone who picks up hitch-hikers are serial killers. It's a well known fact. So I was trapped in a prison with people in business suits with glazed over eyes as they drooled over dreams of their futures with Amway oops I mean Quixtar because no one actually said the name Amway. Even in Amway the name Amway is a dirty word. I eyed the refreshment table warily. Who knew what was lurking in that red colored liquid. If I drank some would I too feel the need for a pink pastel skirt suit?

I listened to this man put down everyone who had a J-O-B. And yes they do spell it out because I guess it's a swear word. Which means that they don't appreciate all the people that keep the world running. You know, like doctors, police officers, garbage men and the people in the offices of Amway and the factories that make their products and the shipping companies that ship their products. He was trying to convince everyone that one day they could give up their J-O-B and become rich. No mention was ever made of product, just of the opportunity.  He promised that people could have lavish lifestyles and never have to work. He also said that there were those who are negative people who wouldn't be able to see the vision and they should be avoided, you know, like your friends and family members. Now we probably all have family we would like to avoid, but it's cheating to blame that on your MLM. "Sorry I can't be at the family dinner and watch Uncle Tom get drunk and get my cheeks pinched by Aunt Bessie and watch a slide show of Cousin Jake's trip to Brazil where he was being held hostage by drug lords because you all won't join my business which is really silly seeing you all have lowly J-O-B's. Yes I know that Aunt Tess is a teacher and Cousin Jodie is a nurse and my brother Mitch has his own restaurant but they are still just stupid J-O-B's and my business could set them all free and if you can't all see that then I have no time for you when I have people to train who actually appreciate what I do and will make me rich."


So what is an MLM?

It stands for Multi Level Marketing. Although that's a misnomer because marketing is aimed at getting customers, not at getting people to join your company. Basically it's shaped like a pyramid which they will point out that all businesses are shaped like pyramids. So what makes it different? That will take several posts to discuss. You can get a better idea of how they work by reading The Dream Scheme parts one and two which is on the sidebar.

Watch Out For These Characteristics of MLM's

1.) You will rarely knowingly attend an introduction to the business meeting. You will find yourself pulled into it. Either a friend will take you without letting you know that's what they're doing, or a friend will invite you over for dinner and introduce it, or there will be some other subterfuge to get you there. People don't say "hey I'm in XXXX, do you want to hear about it?" Okay, sure some people might say this but they're often encouraged not to. Especially the ones with a bad rep, like Amway. In my case it was called Quixtar and I had to do research to find out that it was actually Amway.

2.) They will try and convince you that you are wasting your time working at a job, and that you have to have your own business to be happy and successful. There will be talk about trading time for money. There will tell you they have a new business model, one where everyone can be successful if they want it bad enough. It's not a new business model. It's been around for a long long time and the reason that businesses don't use it is because it doesn't work in the long run.

3.) There will not be much talk about a product or a service. The focus will be on the opportunity. The product or service is not really important.

4.) They will warn you about "negative" people. Translation - anyone who doesn't join up with the company. And they will tell you that you need to cut negative people out of your life.

5.) They will speak to your greed. Now greed is something that we pretty much all have and it can be a fine line between desiring financial success and stability and being greedy. They will promise big houses and expensive cars and trips around the world. They will claim that it will require very little of your time. They will tell you that you can be a better parent if you can take your kids to Disneyland. They will wrap up the dreams that many of us have into a package along with family and church and interconnect them. Good parents are rich. Good Christians are rich. Good people are rich.

I was not happy on the drive home and I told my friend that I wasn't interested in the opportunity.

Sadly, even though I still wanted to be friends, I watched as my friend drifted away, concentrating on people that joined into her various business schemes. It's too bad. I really liked her.

Bill Rancic Wants My Son

It came in the mail. An invitation to my son to attend a seminar that will teach him to buy bankrupted properties for pennies on the dollar. And just for attending he gets a free digital camera too. Plus Bill Rancic, the winner of the first "The Apprentice" with Donald Trump will be there or at least his picture will be there with appropriate quotes.

Does Bill Rancic know that my son is is 12 years old?

"Have you been running an entrepreneurial business that I know nothing about?" I asked him, trying to picture this. His idea of hard work is taking out the garbage.

"Not that I know of. But we should go. We get a free camera."

"It's not that I don't want to learn how to get a half million dollar house for 20,ooo bucks, but I don't have the 20,000 bucks either."

"Yeah, but we get a free camera. A free digital camera."

"Honey, it's not what it promises to be."

"But Mom, it's a free camera, just for showing up."

Yeah, like I'm going to trust a free camera from a group of people that thinks my 12 year old is a multi-millionaire.

Boy, working for Trump has rubbed off on Bill. And that can't be good.

******
Check out my latest book review. Beastly by Alex Flinn.

Who Knew I Had That Kind of Mortgage

I got two emails today informing me that Carrington Mortgage Services LLC has taken out a payment from my checking account for $8716.00.

I laid down on the floor and laughed, and laughed.

How do you take almost $9000 out of a checking account that only has about $300 bucks in it?

And who has a mortgage payment of $9000 bucks anyway? Ed McMahn I'm not.

In fact I rent. What would I pay mortgage on?

But...there was an attachment that suggested I look into.

No, I did not open it.

I looked on Snopes.com for information. Warning: don't go there, you'll never come out again.

Nothing about this was there.

But I'm wondering if anyone has fallen for this, momentarily and ended up with a virus.

Okay, for today's post, go to "How Did I Get Ham Out of A Shrinking Violet?