Hi all,
A new business came to my attention with pyramid scheme earning on eligible product. Anyone had a genuine experience on this, please share what you think.
In my opinion, it's not a scam when the product creates real value.
P/S: a hint of offered product - it's intangible but we all use it almost 24/7.
You know its a winner when its supported by this guy
This idiotic old woman I did computer work for tried to rope me into it, on the idea of video phone landlines (obviously a terrible idea). Now every time she calls me for help I charge her twice as much.
Hey, no point doing discount work for her if she's just going to piss the savings into scams.
Too cryptic, please elaborate to aid discussion
Everyone around you becomes a customer. I had friends who would not stop talking about it… to a point where I stopped hanging out with them coz they always brought the conversation about the product. Very annoying IMO.
You also would want people to become seller using your referral code/link/whatever… There will be an over saturation in the market in which the first in is the clear winner.
If the product creates real value as you are saying in OP, buyers will become sellers not only to sell but to get the products at discounted price for themselves. So you are kinda losing business.
Also, the markup is usually disgustingly high (don't tell that to your customers).
All in all, you have to talk about the products. That will be your job! Since I shared all this, what's the product? maybe you can get a couple of customers from ozbargain… mates' rate?
"Everyone around you becomes a customer. I had friends who would not stop talking about it… to a point where I stopped hanging out with them coz they always brought the conversation about the product. Very annoying IMO."
"You also would want people to become seller using your referral code/link/whatever… There will be an over saturation in the market in which the first in is the clear winner."
"Also, the markup is usually disgustingly high (don't tell that to your customers)."
Best thing you can do in your life is do research in a company you are checking out, not read online on a couple of anonymous complainers on the interweb or go on hearsay of a "lazy people'. They see something and think they can get rich in one week and get lost in the awesome money they see in their dreams whilst staying pityfully under-educated in their learning skills towards whatever they have seen.
Example 1: I want to become a doctor, after a week I think this is too hard and go online to complain that becoming a doctor is a scam since it is way too hard
Example 2: I want to do Network marketing, after 1 week I think this is too hard and go online to complain that becoming a network marketer is a scam since it is way too hard.
Ex 1 its OK, it is hard you know
Ex 2 its a scam
Note: I am not doing network marketing at the moment, not enough time, but if you want to NOT become a wage slave for the rest of your life, the only way to become financially free is to become an entrepreneur….. certainly not staying in your comfort zone waiting for things to happen.
I have interviewed a lot of millionaires and asked them "what is it like at the top" and they all say lonely, since not a lot of people work hard and consistent enough to get there.
EDIT: I was talking about ACN since I have done research in that company
If you waiting for people on the internet to tell you a business venture is a great idea then you're going to be waiting a long time. There's no business that is clearly a money maker slam dunk. Part of starting a business is being able to see the value in a market where the majority sees none. And using that foresight to carve out a niche in the market for yourself that everyone else though didn't exist.
Basically what I'm saying is go prove us all wrong if you think its a great opportunity. But personally I think you'd be a idiot to get involved in shit like this.
Pros:
Cons:
If a product is actually worthwhile, there's not going to be more money to be made recruiting sucker sales persons than there is actually directly selling the product.
the company's profitability depends upon extracting money from their salespeople, rather than through the sale of product.
Someone feel free to correct me if I'm wrong, but I thought that some of these are like Ponzi schemes where the returns to the earlier investors (who are higher in the 'pyramid') are mostly paid by signup fees of the later investors, and not so much from the sale of actual product. Isn't the cost for joining Amway in the $1000s?
I feel like these schemes are literally a stack of middle men. If a $100 product is sold that cost the company $90, the other $10 has to be distributed to 100 levels of middle men, right? So doesn't that mean they each make about 0.01% of total sales by the people under them? Can someone clarify?
Edit: I was feeling a bit ignorant so I did some googling and found this article which may have answered my questions.
Multi-level marketing/Pyramid schemes/social marketing (lots of names… kinda indicates it's a bit dodgy) is very effective at making money, for the few people at the top. For the "leaves" it's generally a pretty bad return on the time (and mandatory kit purchase) you put in. It's also a really good way to loose all your friends by bothering them constantly about having a party or joining as a sales person.
Generally the people I know who keep at it are fairly laid back (don't care if their "manager" gets snarky for low sales), sell something they like, and have a small market cornered. Mums selling Avon to their playgroup friends would be the classic.
You posted a few weeks back that you are a new immigrant to the country
Learn a great Aussie phrase
"Come in Spinner" - use Google
I have a cousin that has gone through many of these - Cleaning products, Younique, that special Coffee, now some alkaline vitamins. There was probably more than that too! Every 6 months it's something new, spammed on her Facebook :/
If there is something that is not good enough to sell itself on the open market, then it is going to be a flop anyway. I notice that in the Land of the (Gullible)Smiles - Thailand, these 'get rich quick' schemes are in their infancy. It is sad to see that the people with the least amount of money are usually the ones who lose in these schemes.
Do it and report back.
If it isn't a scam and the product 'creates real value' why is it not on the open market?
Cause the owners are nice guys that want you to benefit as well? 😂
As the scheme is not launched yet so let's wait and see..
I agree that you'll probably lose all your friends if you wanna be in the top.
I'm just confused because this pyramid scheme seems to be very successful in USA.
THAT is what they want everyone to believe so that they can all get sucked in and thus start to build their pyramid. But some people can't be saved from themselves and greed.
Are you high?
How can you call something a pyramid scheme and think it is a good idea?
Exactly…
I mean, Multi Level Marketing Enterprise is a far more palatable (and far less schemey term).
Fredlecroy - there are plenty of ways to make money these days. Trading time for money, investing money to make more money, starting up a business etc.
Getting started in network marketing is effectively starting your very own business. And just like any business, there are some successful ones, and there are many more unsuccessful ones. There will also be plenty of challenges along the way.
At the end of the day, if you believe in the product/service you'll be providing, and there's money to be made, just go for it. The initial investment to get started usually isn't a great deal of money but the value is in the business/people skills you'd develop and personal growth you'll obtain for yourself through the process. If you manage to stay in the game long enough to make good money, great! If not, at least you tried. The worst thing you can do is be fearful of failure and miss out on opportunities because of it. This applies to not only business but in all aspects of life.
Aren't pyramid schemes illegal? For good reason?
Dad? Is that you?
I love when these pyramid scheme Multi Level Marketing companies say the reason why their products aren't sold in shops is because it would too expensive in shops and selling directly reduces the price because you're not paying the middle man.
That's a good point. However, in the end the products sold via Multi Level Marketing are much more expensive than equivalent products sold in the shops! Of course, then they say that their products are much more superior, blah blah blah.
I hope its as good as the hundreds of "business opportunities" i get on linkedIn every month
I'm trying to get a relative off ACN. I don't know the details first hand but from what I've gleaned and my corporate management/investing experience:
I wonder if anyone has ever done proper research on the people who are prone to participate in these schemes. E.g. are they less savvy than average, lazier than average? Because the opposite of these people have or are on their way to successful (including being happy with what they've achieved) professional/trade careers, genuine value adding businesses, or investment portfolios, and they've reached this stage through building their knowledge and years of hard work.
But you might say that's what I'm about to embark on with my MLM venture. Nope, you're starting as a newbie in a new career/business/investment. Are you prepared to stick at it for 10-20+ years to be successful. Will it provide you with a reasonable income along the way to make you persist (if you're going to use the argument that you have to invest like a medical specialist and spend money to make money for a couple of years, then you're probably less savvy than average)? Are you going to work on becoming a localised expert in your field or are you just attending the BS training provided by the MLM company looking to milk you for their profitability?
Have you ever succeeded at anything work wise? Yes, great, why don't you stick with it and invest more into it? No, then what makes you think that you'll be the very small minority that will break-even/make a little bit of money?
Lost friends over pyramid/mlm schemes. Prepare to sell your soul…
Hows this for a paradox. Come up with an MLM and on sell that rather than jumping on the band wagon :D
Are you talking about ACN?