Some excerpts from yet another great article of Pyramid Scheme Alert byRobert FitzPatrick
There has been much information in the news and many public warnings about scams that originate in Nigeria and are promoted to people in America. Few people, however, are informed or warned about an "American" scam that is promoted to people all over the world.
The "Nigerian" scam" begins with what seems to be a private email solicitation. It offers an opportunity to gain a large sum of money that the scheme's promoters want to get out of that country or has been left over from some government or business operation. But first the person being solicited must send a small amount of money to get the process started. Then, a larger amount of money is required to complete the deal, then even more is needed to get final approval.
The "American" scam operates similarly. There is a promise of large sums of money. A small investment is required to begin. Then, more money is sought to remain "qualified" to gain the promised money and even more to achieve the higher position in which the big payoff will supposedly be earned. Finally, still more must be paid in order to be "trained and motivated" to get to that promised payoff. In the end, the same result occurs -- lost money, shame and silence.
The "American scam" is called multi-level marketing (MLM) or sometimes "network marketing." It promises the "opportunity of a lifetime" from owning a "home-based business." In some countries, it claims to be the purest and best example of "free market capitalism." In fact, it has caused financial loss, wasted time, ruined careers and broken families all over the world. Its actual operations and its terrible financial results are hidden from those solicited.
The Five Ploys Used to Get Consumers into the 'American Scam'
Ploy #1: You can make money selling the products to friends and neighbors!Great read. I just posted some main points. Check it out:
Ploy #2: You can make 'bonuses' from the products purchased by all those you recruit.
Ploy #3: The higher up you are in the organization, the more you make.
Ploy #4: To be successful you need training and motivation and to listen to the people who are already successful in the program
Ploy #5. The Ultimate Deception: If you do not succeed, it is only your own fault.