"Three Days, Three People, Retire in 30 days!
Make no mistake, People will start BEGGING you to sponsor them in!
Take a look at this Income Projection Chart:
Level | # of Days | # Benefactored | Income Projection
1 3 3 $70 2 6 9 $130 3 9 27 $290 4 12 81 $660 5 15 243 $1520 6 18 729 $3520 7 21 2,187 $8160 8 24 6,561 $18,880 9 27 19,683 $43,520 10 30 59,049 $99,840 11 33 177,147 $227,840 12 36 531,441 $517,120 13 39 1,594,323 $1,167,360
Days add up in a hurry and so does your downline!"
OK people ... I know how tempting this looks but REALITY check time. This is but one example of a number of "wealth generation programs" currently being touted online. The idea is that you must find three people who want to join this program, you pay $20 to "benefactor" each of them into program (for a total "investment" of $60) and you're set for life. Oh, and you have to do it in three days. Each of your three, if they are to remain in game and thereby derive same wondrous riches from program as you, must also find three people, benefactor them into program (again within three days) and their three must find their three in three days and so on.
And, because non-performers are booted from program, so theory goes, only people getting paid are ones actively benefactoring in their own recruits, each of whom down line contributes their "investment" of $60.
The product each person gets for their $60 (because this is NOT, of course, a PYRAMID SCHEME - banish thought!) is:
"Software entitled "Building an MLM Empire using Internet", in which you Own Full Licensed Retail Rights to Market software. Retail Value $29.95 All Sales Are Final-No Refunds!"
OK, three points on "product".
First, your investment is $60. The product is worth (let's give them benefit of doubt) $29.95. HELLO!? But you get RESELL RIGHTS!, I hear you protest. That makes it more valuable than just purchase price of product itself. Oh yeah? Well, you HAVE to be able to sell product otherwise whole scheme ... er ... program would be nothing more than a wealth distribution arrangement wouldn't it? And that's against law, and we couldn't have that.
Second, this is not "software", it's an e-Book.
Third, title of e-Book deviously and insidiously implies a relationship between this "wealth creation program" and MLM (multi-level marketing). MLM is a different thing altogether. For a more detailed explanation of what MLM is and what it is not, read "Not MLM! ... Why ever not?" at http://www.ahbbo.com/notmlm.html .
'WEALTH CREATION' PROGRAMS
OK, so what about these "wealth creation programs" then? Sounds like a great idea, right? Everybody wins! Well, think about this ... if everyone goes out and gets three people who each have to throw $60 into pot for their three, everybody up and down line has effectively contributed $60 and that's all there is in pot. How do you get more than your $60 back?
Ahah! you cleverly point out, those who don't recruit ... er ... "benefactor in" ... er ... SELL (yeah, that's it, SELL) "product" to their three gets dropped, don't they, so now $20 their benefactor contributed for them to join program is still in pot but they're not. They've forfeited their investment. THAT'S how we make money.
OK! Very good. I can see you're paying attention. Just one, teensy little problem with this brilliant plan.
It's B.S.. It's a pyramid scheme and it's ILLEGAL.
PYRAMID SCHEMES VS. LEGITIMATE MLM
In her prepared statement to International Monetary Fund's seminar on "Current Legal Issues Affecting Central Banks" in May 1998, Debra Valentine, General Counsel for U.S. Federal Trade Commission, had this to say about pyramid schemes:
"What is striking about these schemes is that while they are very old forms of fraud, modern technology has vastly multiplied their potential for harming our citizens. The Internet in particular offers pyramid builders a multi-lane highway to world-wide recruits in virtually no time.
"What is a Pyramid Scheme and What is Legitimate Marketing?
"Pyramid Schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to public. Some schemes may purport to sell a product, but they often simply use product to hide their pyramid structure. There are two tell- tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading [recruits are forced to buy more product than they could possibly sell] and a lack of retail sales [sales are made only between people inside pyramid, not to public in general - sound familiar?]. ...
"[P]yramids are quite seductive because they may be able to deliver a high rate of return to a few early investors for a short period of time. Yet, .. pyramid .. schemes are illegal because they inevitably must fall apart. No program can recruit new members forever. Every pyramid .. scheme collapses because it cannot expand beyond size of earth's population. [Footnote 3: "Assume a pyramid scheme in which each person recruits 10 new people. There would be one person at top, 10 beneath her, 100 beneath them and so forth. The pyramid would involve everyone on earth in just 10 layers of people with one con artist on top. The bottom layer would have more than 4.5 billion people."] When scheme collapses, most investors find themselves at bottom, unable to recoup their losses.