TRUE FACTS ABOUT “MULTI-LEVEL MARKETING
PYRAMID PLANS, For the past few years, “pyramid” schemes and/or “multi-level” marketing programs have been sweeping the country. They may look like “winners” on paper, but the big question is: Do they really work?
A reliable firm recently made an extensive survey. For over a year they accumulated all incoming mail which advertised various typed of pyramid and/or multi-level marketing programs. Then, a questionnaire was designed and sent to over 5,000 of these multi-level program participants. Of the replies received, over 98% said they LOST MONEY!!!
As example, a man in eastern Virginia sadly told how he spent over $7,000.00 in two years on multi-level programs. Total income received to date: - slightly over $700.00!!! A woman in southern California said she joined a total of 47 programs. She wrote, “I didn’t even get the cost of postage back” and “my husband is as mad as hell at me for wasting so much money”! Letters received from senior citizens and single parents are even more tragic.
Less than 1/2 of one percent claimed they “broke even”, but when asked if they would be interested in joining “one more ‘fool proof’ multi-level program”, all but one replied “NO”! Another little known fact about “pyramids” and/or “multi-level” schemes is that they are illegal!! The U.S. Postal Service has put thousands of formerly respectable mail dealers out of business for promoting these get-rich-quick schemes. Why? In their book “Mail Fraud Laws”, U.S.
Postal Service states that the “endless chain” schemes of pyramids and multi-level marketing are just as illegal as the old fashioned chain letters. In addition, the book adds (and we quote), “The road to riches is buying a distributorship for selling a common product. The big profits are to come from recruiting agents and dealers to sell the product. As a distributor, there are promises of a percentage of the money his dealers put into the scheme plus commissions on their sales.” “While all multi-level distributorships are not fraudulent, the pyramid type resembles the illegal the illegal chain-letter scheme.
The profits come not from selling the product, but ininducing others to put their life savings into a distributorship. Where a scheme flourishes, the supply is soon exhausted and thenew investors are left with a faded dream……”.Postal Inspectors recommend that one should: “Be wary if the promoters are more interested in selling distributorships than they are a product or service that consumers need”.
And to “Ask those selling franchises for the names and addresses of those making the fabulous profits. also, “Ask to see their business records, and interview those actually operating a franchise”/ “Also, check the company with your Better Business Bureau”. Another good idea when you are solicited to join one of these programs, is to take the sales literature you receive to your local Postal “Fraud” Inspector and ask them for their opinion. this little act won’t cost you anything and could save you a lot of time and money (and even legal fees)!!
Also, beware of schemes where you are instructed to send checks to a number of different names and addresses. This is a sure sign that you are joining an illegal endless chain. Also, watch out for schemes where you are assigned a number, and/or others use a number instead of their right name and address. (What are they afraid of? Or are they trying to throw Postal authorities off their trail?) A good tip to keep in mind is when any sales material you receive in the mail states that it is “not illegal” or “perfectly legal”M - or something similar - it usually is 100% ILLEGAL, and can get you into more trouble than you’ve ever bargained for. And
Always keep in mind, “Ignorance of the law is no excuse!”
But, if you don’t believe these facts, by all means join as many get-rich-quick schemes as you can afford. You can bet your life that someone will appreciate your money and may be getting rich just as quick as their sales literature promises - but we bet it won’t be you. And don’t be surprised if one day you get a formal “request” from Postal Authorities asking you to immediately discontinue your mail order activities! In any event, if you are one of many who have faith in these rip-off schemes and confidence that they can make you an overnight millionaire, we have just three words for you: “Good Luck, Sucker!”
PYRAMID PLANS, For the past few years, “pyramid” schemes and/or “multi-level” marketing programs have been sweeping the country. They may look like “winners” on paper, but the big question is: Do they really work?
A reliable firm recently made an extensive survey. For over a year they accumulated all incoming mail which advertised various typed of pyramid and/or multi-level marketing programs. Then, a questionnaire was designed and sent to over 5,000 of these multi-level program participants. Of the replies received, over 98% said they LOST MONEY!!!
As example, a man in eastern Virginia sadly told how he spent over $7,000.00 in two years on multi-level programs. Total income received to date: - slightly over $700.00!!! A woman in southern California said she joined a total of 47 programs. She wrote, “I didn’t even get the cost of postage back” and “my husband is as mad as hell at me for wasting so much money”! Letters received from senior citizens and single parents are even more tragic.
Less than 1/2 of one percent claimed they “broke even”, but when asked if they would be interested in joining “one more ‘fool proof’ multi-level program”, all but one replied “NO”! Another little known fact about “pyramids” and/or “multi-level” schemes is that they are illegal!! The U.S. Postal Service has put thousands of formerly respectable mail dealers out of business for promoting these get-rich-quick schemes. Why? In their book “Mail Fraud Laws”, U.S.
Postal Service states that the “endless chain” schemes of pyramids and multi-level marketing are just as illegal as the old fashioned chain letters. In addition, the book adds (and we quote), “The road to riches is buying a distributorship for selling a common product. The big profits are to come from recruiting agents and dealers to sell the product. As a distributor, there are promises of a percentage of the money his dealers put into the scheme plus commissions on their sales.” “While all multi-level distributorships are not fraudulent, the pyramid type resembles the illegal the illegal chain-letter scheme.
The profits come not from selling the product, but ininducing others to put their life savings into a distributorship. Where a scheme flourishes, the supply is soon exhausted and thenew investors are left with a faded dream……”.Postal Inspectors recommend that one should: “Be wary if the promoters are more interested in selling distributorships than they are a product or service that consumers need”.
And to “Ask those selling franchises for the names and addresses of those making the fabulous profits. also, “Ask to see their business records, and interview those actually operating a franchise”/ “Also, check the company with your Better Business Bureau”. Another good idea when you are solicited to join one of these programs, is to take the sales literature you receive to your local Postal “Fraud” Inspector and ask them for their opinion. this little act won’t cost you anything and could save you a lot of time and money (and even legal fees)!!
Also, beware of schemes where you are instructed to send checks to a number of different names and addresses. This is a sure sign that you are joining an illegal endless chain. Also, watch out for schemes where you are assigned a number, and/or others use a number instead of their right name and address. (What are they afraid of? Or are they trying to throw Postal authorities off their trail?) A good tip to keep in mind is when any sales material you receive in the mail states that it is “not illegal” or “perfectly legal”M - or something similar - it usually is 100% ILLEGAL, and can get you into more trouble than you’ve ever bargained for. And
Always keep in mind, “Ignorance of the law is no excuse!”
But, if you don’t believe these facts, by all means join as many get-rich-quick schemes as you can afford. You can bet your life that someone will appreciate your money and may be getting rich just as quick as their sales literature promises - but we bet it won’t be you. And don’t be surprised if one day you get a formal “request” from Postal Authorities asking you to immediately discontinue your mail order activities! In any event, if you are one of many who have faith in these rip-off schemes and confidence that they can make you an overnight millionaire, we have just three words for you: “Good Luck, Sucker!”
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