Pyramid Schemes

cheerfulgreek · #1 02-08-2008, 07:15 PM

I'm venting here, but does this just happen to me or has it happened to some of you too. I get approached by pyramid scheme morons a lot and it gets on my effing nerves! When I'm not studying or on my lap top I like reading the Better Home magazines, and someone will come over and start talking to me about the magazine and what I'm reading about, and the whole time I'm thinking it's someone who's trying to have a nice conversation with me. Come to find out he/she is trying to sell me something. They'll ask "Wouldn't you like to have a home like that" or whatever

I told him no thanks, I'm not interested, but they're so persistent. This guy tried to give me his number incase I changed my mind. I took it and threw it away. That happened about 6 months to a year ago, and the same guy gave me the same line again when I came back. He didn't remember me from the 1st time. I cut him off and reminded him about the last time he tried to sell me this crap.

Then Amway! That whole McDonalds BS! I often wonder is it certain people they prey on or what, but it's so annoying.

Does this happen to anyone besides me? I know it's a stupid thread, but I'm just curious to know.

knight_shadow · #2 02-08-2008, 07:22 PM

I almost got sucked into the Prepaid Legal one. One of my line brothers knew a guy "who worked in marketing," so I met up with him to do some networking. Well, our meeting ended up being a sales presentation. It was very awkward, so I left as soon as I could.

Now, my big brother (in the fraternity) is involved in one and will NOT take no for an answer. Every phone call I get is "Hey, how are you? How's school? How's life? Good. Listen...if you're not busy today, my company (never gives a name

) is having a meeting. No pressure at all; we just want to give you some information!"

I've since stop answering his phone calls

AGDee · #3 02-08-2008, 10:32 PM

Yeah, I've had an ex-boyfriend PM me to check out his "business".. some kind of juice or vitamin supplement or something. Primerica fooled me into going to one of their presentations. My idiot ex-husband invited an Amway couple into our home once. The worse the economy gets, the worse this kind of thing gets, I think. People think "Well gee, I was laid off, but I can have my own business!" or "If I have a side business, I can pay off those credit cards with all that extra money!" Preying on the weak.. that's what they're about!

Benzgirl · #4 02-08-2008, 10:35 PM

Scamway!!!!

KSUViolet06 · #5 02-08-2008, 10:42 PM

I'm not sure if this is a pyramid scheme or not, but I used to intern with a girl who worked for a company selling mail order groceries. She was consistently trying to get me to order stuff and it drove me nuts.

Her "sales pitch" went something like this:

I would always bring a snack of cookies or crackers to work because I didn't take a lunch.

Girl: Hey those cookies look good. Where did you get them?
Me: Acme (local grocery store)
Girl: How much were they?
Me: I dunno, like 1.00.
Girl: How often do you go to the Acme?
Me: Like once a month
Girl: Doesn't it frustrate you to have to navigate a crowded grocery store all the time?
Me: Um no, I only go like once a month so it's no big deal...
Girl: Well, what if I could get you those cookes for LESS than a dollar?
Me: It's no big deal really....
Girl And I could GUARANTEE that you'd never set foot in a grocery store again?
Me: Um....
Girl: (cuts me off) my company sends grocerys through the mail at HALF the price blah blah

She handed me the catalog and I checked out my cookies. They were 50 cents WITH 2.00 shipping & handling. I told her no. Yet she continued to ask me EVERY WEEK when I came in.

I finally told her I didn't want any and she was pretty mad. She insisted that people "wasted their money buying directly from the store." There's no way I'm going to buy something and pay DOUBLE in shipping.

knight_shadow · #6 02-08-2008, 10:50 PM

^^^ That reminds me of one of my current co-workers. He's doing the online grocery thing too, so any time he sees me with an energy drink or soda, he'll throw out that same pitch. He's also tried to reel me in by offering to give me free samples of the groceries/drinks that he sells.

So basically, it's a brand that I'm not familiar with at the same (or higher) cost and shipping fees. Which is very stupid.

But he still asks

Benzgirl · #7 02-08-2008, 10:53 PM

I once dated a guy who got into and out of Amway before I met him. He and his ex Wife met at one of their convensions (whatever they were called). It was a real big deal.

After they were married, she insisted that they were distributors within her "circle" (WTF). So, he had to leave his circle behind. Then, the top guy in the circle told him that since he didn't have an "emerald" income he couldn't drive the Mercedes that he had (he worked for the dealership and had a company car). They basically told you how to live, who you could socialize with and controlled you life.

My recommendation, if approched by an Amway cult member is...

RUN

AWAY

FAST

bluefish81 · #8 02-08-2008, 10:58 PM

Ugh, my sister does something like you mentioned KSUViolet06, except it's for organic cleaning supplies, toiletries and vitamins and stuff like that. They require a minimum order every month of something like $45. Yeah, because I'm going to need to spend that much on cleaning supplies every month. I'm one person. And the place requires a default order, so that if you don't place your order by x date of the month they send you the default order. The people above you, who brought you in get a certain dollar amount of commission or whatever of your sales, and they get so much of sales of the people you bring on and on and on.

texas*princess · #9 02-08-2008, 11:08 PM

Does anyone know anything about Ameriprise? When I was in college, they recruited me off Monster.com.... I went to their presentation deal because I figured why not, but decided it wasn't for me...they just seemed like the "ambulence chasers" of the finacial world.

One of my friends... whom I haven't spoke to in awhile, joined them not too long ago, and I happened to see her a few months ago, and now she doesn't leave me alone. Every conversation we have is about "having lunch" but really she just wants me to be one of her clients. I'm a super busy person so we played telephone tag for awhile, but one time she finally answered my phone call and after 20 minutes of random conversation, BAM! She busted out her Ameriprise crap. I've told her already I wasn't interested, but she doesn't stop!!!

Are they on some kind of pyramind scheme? I know they do pretty well if they sell a lot... only because I went to their presentation deal a few years ago.... I would assume their recruiter gets a cut too?

OOhsoflyDELTA#9 · #10 02-08-2008, 11:30 PM

Wow...its crazy that this thread was posted tonight because today is the one year anniversary of my joining a Cashflow to Wealth marketing company...I know there are some useless companies out there but not all of them are....I know more now then I ever I thought I would about my finances and how to break the cycle of debt so many Americans are caught up in...but thats what my company is about..I sometimes get misty thinking what my financial future would have been like without one of my friends introducing me to our system..I was clueless and probably would have had to work until I died....I know some companies try to get you to push huge amounts of household products or what not and other useless stuff...as far as being pushy, I'm not at all when it comes to my business, I feel like this, I mention it to people I feel like can truly understand the concept because IMO everyone who isn't wealthy needs it, but everyone can't and will not be able to grasp it, it takes a great deal of discipline....I guess maybe its because we don't sell anything...this is the first time I've even mentioned it on GC and I post almost everyday...

ETA: businesses formed in a pyramid formation are common...take Mickey Ds for example...corporate is on top, you buy a franchise you fall under the top...you pay a fee and a percentage of your sells go to corporate...its a pyramid structure...every store opened makes up the body of the pyramid...the scheme thing comes in with companies where only the top brackets make any money because the requirements, quotas, or whatever are too difficult to reach for the people in the "body" of the pyramid...

AGDee · #11 02-08-2008, 11:44 PM

What makes a franchise different than a pyramid is that there is only one level below corporate. Each franchise doesn't try to get others to buy franchises from them to make money off of them. Your own success isn't dependent on how many other people you get to buy franchises. It's only dependent on how well you run your business and if you made a smart business decision in the first place (chose a good location, in an area where there was a need, etc).

bluefish81 · #12 02-08-2008, 11:47 PM

Quote:

Originally Posted by OOhsoflyDELTA#9

ETA: businesses formed in a pyramid formation are common...take Mickey Ds for example...corporate is on top, you buy a franchise you fall under the top...you pay a fee and a percentage of your sells go to corporate...its a pyramid structure...every store opened makes up the body of the pyramid...the scheme thing comes in with companies where only the top brackets make any money because the requirements, quotas, or whatever are too difficult to reach for the people in the "body" of the pyramid...

Ya lost me here.
I see McDonalds as this:
McDonalds Corporation
Franchises Franchises Franchises

I don't see other middle people here. Only the corp is getting a cut of your profits

Something like, Amway works like this doesn't it? A will be the top person. B is the next person in the line and so on. They all get a cut of E's profits. E needs to bring on more people to make $$.
--A--
B--B--B
C--C--C--C
D--D--D--D--D
E--E--E--E--E--E

Am I wrong with my thinking?

OOhsoflyDELTA#9 · #13 02-09-2008, 12:00 AM

^^^^^^^^^^

true enough which is why I called it a pyramid structure...I used McDonalds only to show that theres a corporate on top and franschises underneath...I guess Mary Kay would be a more appropiate example of the trickle down effect in a pyramid structured business where a person can benefit from the efforts of the people that fall under them...I was only trying to point out that the mere structure wasn't bad, only the companies that make empty promises...at one point Amway made more cash money millionaries then any other company in the US but I don't know if thats still true...as far as their philosphy, I've actually never encountered anyone selling their stuff so I can't speak on it....

Xidelt · #14 02-09-2008, 12:58 AM

anything sold at home parties or through a catalog = pyramid scheme to me. I've quit going to shop-at-home parties that friends and co-workers invite me to. I always feel like I have to buy something and then say "no" to the "start your own business/work at home for extra cash" pitch. Scary Kay, Beauticontrol, PartyLite, Cookie Lee, Tupperware, Southern Living at Home, Pampered Chef....I'm over it!

cheerfulgreek · #15 02-09-2008, 04:29 AM

Quote:

Originally Posted by bluefish81

Ya lost me here.
I see McDonalds as this:
McDonalds Corporation
Franchises Franchises Franchises

I don't see other middle people here. Only the corp is getting a cut of your profits

Something like, Amway works like this doesn't it? A will be the top person. B is the next person in the line and so on. They all get a cut of E's profits. E needs to bring on more people to make $$.
--A--
B--B--B
C--C--C--C
D--D--D--D--D
E--E--E--E--E--E

Am I wrong with my thinking?

lol lol lol Nope.