New MLM Scam?

[freebird5825]

...These bored house wives would make a lot more money running a phone s-- line than peddling housewares. No need to waste your time on MLM's just wear a blue tooth as you do the dishes and the money will be rolling in .

THAT'S how I'll pay my property taxes. Now why didn't I think of that?

For a good time, call 1-800-FRE-BIRD. Over 41 only.

 

[clifp]

People still make money on phone sex lines? I thought the internet and web cams would killed that business dead. Of course the nice thing about phone sex is just need a good imagination and sexy voice, no need for implants and pilates.

 

[socca]

I have an in-law who has fallen for a MLM scam selling wrinkle cream / anti-aging products (www.nuskin.com). She claims that she is going to work hard for two years building a selling organization underneath her, and then sit back and enjoy $20k/month in residuals while doing little work.

A fly in the ointment: every person who joins her 'selling organization' has the same dream. With a finite market and growing competition, there is going to be some tier of participants who will be unable to grow 'selling organizations' of their own, and will be stuck peddling snake oil in strip malls rather than enjoying residual income with little work. Very sad.

 

[lets-retire]

I've known exactly two people who made a decent amount of money from MLM. Both were in the 60's and 70's and have since died. Both seemed to concentrate on the home parties and not the building of their organization. They wanted something to do while the husband was out making the real money. The organization just happened as a result of the parties. I do not believe the success attainable in the early days is possible now. The companies are too well known and have bad reputations. The products also are very over priced when compared to the Walmarts and Targets of the world.

I did get involved with one of those buying clubs similar to Direct Buy and did save enough to repay my initial dues. I do include the negotiating power in that savings, as I was able to have a company knock off several hundred dollars off several purchases by bringing in the quote from the buying club. For most everyday items it is a waste of money, Walmart, Target, Sam's, etc. are cheaper, but for furniture I was able to save quite a bit.

 

[tuixiu]

I've got a coworker who was (is?) big into the juice one zri/zrii some word like that. He used to be into some Amwayish organization that wasn't Amway but seemed like same crap different toilet.

It was funny when he switched to the juice thing because he was laying it on heavy with me since it's new so now is the time to get in. Just like the other comments in this thread he was sure that within a year he'd be sitting on his back patio sipping beer while all this residual income flowed in, and of course nothing has come of it except he drinks some really freakin overpriced cans of magic juice.

There were two others at work who were caught up, one with the pampered chef and one with the candles thing. Pampered chef actually made me a little jealous since she'd bring the stuff people ordered to work in a big box and it was like Christmas with everyone fingering their pricey new baubles. I've already got the only kitchen things I'll spend big money on (knives,pans) but on those days I wouldn't have minded being one of the lucky few clutching a new overpriced spatula.

 

[tuixiu]

Also = one thing I've noticed with the MLM types is they always know of someone else who's already pulling in $1000/month residual income. It'll be their cousin's wife's friend, or their neighbor's coworker, etc. never them and never someone a single relationship link away but somewhere in their web of relatives/friends/neighbors there is a person who's living the dream dammit.

 

[DAYDREAMER]

My DW tends to fall for the networking marketing scams. She is a very smart person, makes a very good income at a steady job, but for some reason, allows herself to get brainwashed by the slick talking seminars. The list she has fallen victom are as follows: Amway, tupperware, stamps, pampered chef, and currently Scrap Booking. She actively pursued selling Amway, Tupperware, and pampered Chef, and the tactic was always the same. Prey on friends and relatives, and every week you go to a pep rally. These pep rally brain wash seminars must be powerful, because by the end of the week of going to her day job, then running parties after work, would wear her down, for little to no profit. After a Monday pep rally, she would be rip roaring ready go. I was able to distract her from going to these rallys 3 weeks in a row, and she was able to come to her senses, and relize she wasn't making any money.

The latest scam she is falling for is Scrapbooking. I noticed she had a business card with her name on it. Now I need to bring her to her senses again!!!!

I hate network marketing.

 

[queeneev]

Ah this thread evoked some oddly sensual feelings...I am an ex-MLM junkie, and proud to say I have been clean for 20 years.

Feel free to scold me. That which does not kill me makes me stronger.

PS - you should add "Turnkey Scams" to this discussion, as it is so similar. Someone pitches you a chance to make a ton of money, for a fee, and then you end up making chump change. I was an MLM/Turnkey junkie.

I agree with everything said here. MLM simply was not, is not, nor will it ever be, the answer to a dream. They all suck (money out yer arse)...But I think I know why people willingly and knowingly sign up and attempt to follow these "plans" (barring sheer lame brains). It is the idea of the "possibility". I was ambitious and book smart, but naive and hopelessly romantic and in a bad spot in life, and actually believed "I could be different" when I began my plan(s). For a small fee, I could at least appease my curiosity. Somewhere in my heart I wanted to believe "not everything is a lie...". I had a baby, lived an embarrassing bottomly existence in a trailer, waiting tables, getting food stamps, hiding from an abusive man, I wanted to ESCAPE. Plus.....more importantly, I had the prescience to know early on that I wanted to FIRE! Unlike the annoying people you speak of, though, I did not have the heart (or balls) to pester my loved ones. In fact, I was too embarrassed to do so, as I concede to knowing all along that these things are "thin", at best. I just had a HUGE sense of curiosity sprinkled with "wishes and dreams".

There wasn't the internet, there wasn't a Walmart (here), or Target. I used to buy National Enquirer and read the classified ads for fun. So much junk, looking for nuggets.

So I embarked on:
Herbalife - my first stab - never sold a single product, nor did I use the ones I got in my kit. I was afraid to "take people's money".

Went in halfsies with another poor neighbor, to buy a "jewelry kit". We could sew beaded earrings and mail them in for pay. I remember the cost - $40, a lot of money to me then. Not an MLM, but in the same "family".

Got the itch again - Discovery Toys (twice, actually, only because getting the starter kit in the mail was great fun and it included loads and loads of well-designed toys haha) - probably made enough to cover the sign up fees.

50 acrylic Candy boxes (the ones where you drop change in, and take a piece or two of candy, all for....."charity"....I won't even humiliate myself here on how I rationalized that effort). Drove all over town day after day for 6 months collecting my coins, rolling it and counting, all for about "break even". While working my day job.

Some generic "catalog company" that sold luggage and clocks and other garbazhe. Company got sued and folded shortly after I joined. Oh joy!

And I should probably include the stock I bought that would SKYrocket once the patent was approved. The tipster did say he "put his mother in it", so.....I did mention I was naive, didn't I?

Now, let me caveat my ridiculous endeavors by saying that a) it's fun to get things in the mail, b) you "NEVER KNOW" (hahaha I guess I am still a dreamer), and c) all of the above happened in the 1980's. I even have photos of the lopsided hairdo and "Outback Red" jodphur pants to prove it. Nuff said.

PSS - I did stick to it and get myself on TAR14, so dreams do come true! Is all I'm sayin'.

PSS - one of the TAR14 racers does the same annoying thing, spams us with requests to try acai juice, and join his "cellphone plan".

Peace and Noni (JUST KIDDING!)

Victoria

 

[socca]

...and the tactic was always the same. Prey on friends and relatives, and every week you go to a pep rally.

My in-law has managed to convince my 96 year old grandmother to pay $150/month for wrinkle cream. Hello?? Does a 96 y-o woman need wrinkle cream? My GM is trying to find some politically correct way of getting out of the deal.

 

[kumquat]

I hate network marketing.

When I was young, these were called pyramid schemes (no Madoff involved). In the last many years, the PC group have called them MLM. However, I'm an old phart and.....

Somehow many things don't change.

 

[CuppaJoe]

Thanks, Kumquat, I had to look it up in the urban dictionary. So in the '80s I would say, "sounds like a pyramid scheme" and friends would have a whole spiel about how it is not. Now they could just tell an old phart like me, "no, it's MLM.

 

[Sarah in SC]

Interesting stories, especially from Victoria-thanks for sharing.
I think I do understand a bit better how this rah-rah stuff makes the target feel like they belong and they are smart and part of something bigger than themselves.

Kinda like a cult. In fact, I was struck by that, after doing the research. I just read a fascinating book on the Jonestown massacre by a survivor, Deborah Layton, called Seductive Poison. It sounded pretty darned similar and explains how cults (and MLM) takes in smart and educated people who just want something to believe in.

I think I've convinced said buddy that it is a bad deal, he hasn't mentioned it again. At least he won't be trying to rope us in!

 

[ziggy29]

My in-law has managed to convince my 96 year old grandmother to pay $150/month for wrinkle cream. Hello?? Does a 96 y-o woman need wrinkle cream? My GM is trying to find some politically correct way of getting out of the deal.

The media love these stories about scams and inappropriate marketing to the elderly, especially very old widows. A few well-placed calls might do the trick if they want to avoid some really bad PR.

 

[CuppaJoe]

The media love these stories about scams and inappropriate marketing to the elderly, especially very old widows....

With my 88-yo mom it was the paving guy. He had some extra blacktop after a big job. IIRC, he came back again a couple of times, $3,000 to cover the driveway all the way around the house to the garage, and then a nice big turn-around area. That was one leg of a three-part argument that we knew it was time for mom to move on to other living arrangements. Funny, it's one of the things that shows up on the house papers; I'm sure you can see it from a low-flying plane.

 

[freebird5825]

My in-law has managed to convince my 96 year old grandmother to pay $150/month for wrinkle cream. Hello?? Does a 96 y-o woman need wrinkle cream? My GM is trying to find some politically correct way of getting out of the deal.

Easy one if I may help out here...I use this one all the time for makeup selling types. Suggest to your grandmother that she can tell the pushy in-law that she's allergic to face creams and makeup of all kinds, except the ones she has on hand at her house. Doctor's orders to avoid all new cosmetic products.

 

[HFWR]

My in-law has managed to convince my 96 year old grandmother to pay $150/month for wrinkle cream. Hello?? Does a 96 y-o woman need wrinkle cream? My GM is trying to find some politically correct way of getting out of the deal.

 

[kumquat]

Hey, IFIRC, granny is about 35 in that picture.

 

[Khan]

Hey, IFIRC, granny is about 35 in that picture.

Irene Ryan - Wikipedia, the free encyclopedia