EFT For Me ------- Another scam ????

Madman88 said:
yes its total bull.

BUT: ... http://www.property24.com/for-sale/...te/melkbosstrand/western-cape/10767/100250597

There are plenty of perfectly legal and perfectly viable pyramid scheme's. Personally I don't go near them because they basically force you to turn your friends into customers, but I know some people who are making decent cash and living nicely from Herbalife and Amway.

The way to spot the pyramid scam's is that there is no real product being sold. If people are more interested in the "re-seller program" than the actual product then sooner or later its going to fall flat.

This is a classic pyramid scam.
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There is no such thing as a perfectly legal and viable pyramid scheme. Don't confuse a pyramid scheme that is still operating as legal and viable. All this proves is that there will always be suckers pulled in by the promise of excessive returns and that authorities can't keep up.
 
zippy said:
There is no such thing as a perfectly legal and viable pyramid scheme. Don't confuse a pyramid scheme that is still operating as legal and viable. All this proves is that there will always be suckers pulled in by the promise of excessive returns and that authorities can't keep up.
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Erm, are you saying that amway and herbalife are illegal? Or any other legit company that uses multilevel marketing? Thats what a pyramid scheme is.

Let me help you. Theyre not. And they are viable. The company exists to sell its products and uses multilevel marketing to do so. I know people who have lived very well off of herbalife for the last 15 years.

Its when there is no actual product being sold that it becomes illegal. The product is the key, not the method in which the company does its marketing.
 
A guy I know called me today saying he invested R1000 a few weeks ago and made R200 so far, he plans to invest a whole lot of money into this scheme. He said I should also invest but told him it's a pyramid scheme. I don't get how people can just fall for this.
 
I remember one I fell for when I was 15 - studiotraffic - or something similar - invret money - click adds - recieve 1% interest per day - bye bye R500
 
Madman88 said:
Erm, are you saying that amway and herbalife are illegal? Or any other legit company that uses multilevel marketing? Thats what a pyramid scheme is.

Let me help you. Theyre not. And they are viable. The company exists to sell its products and uses multilevel marketing to do so. I know people who have lived very well off of herbalife for the last 15 years.

Its when there is no actual product being sold that it becomes illegal. The product is the key, not the method in which the company does its marketing.
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Let me help you. Pyramid schemes are NEVER sustainable. That's the whole point. Affiliate or pyramid marketing is not officially a pyramid scheme, although some people think it should be. Amway and similar companies are highly unethical in their conduct - the concept is dishonest about the group's earning potential and they've even been nailed with fines in the past. The Federal Trade Commission has warned the public to stay the hell away from multilevel marketing.

You are highly misinformed about this topic and the topic of business ethics.
 
Bryn26 said:
Let me help you. Pyramid schemes are NEVER sustainable. That's the whole point. Affiliate or pyramid marketing is not officially a pyramid scheme, although some people think it should be. Amway and similar companies are highly unethical in their conduct - the concept is dishonest about the group's earning potential and they've even been nailed with fines in the past. The Federal Trade Commission has warned the public to stay the hell away from multilevel marketing.

You are highly misinformed about this topic and the topic of business ethics.
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Amway recently went through some sort of redesign/re-imagining.

They now have physical stores where you can go in and buy their products - some of the stuff they sell is actually quite good value.
 
The only people that make money off pyramid schemes are the first few investors. Investors that invest after a whole lot of people have already invested will lose their money when the scheme collapses. The people that want to participate in pyramid schemes must be one of the first few investors.
 
pgs said:
People forget that cops main job is to prosecute offenders. If I am standing on the side of the road with a brick in my hand 'cos I want to go fishing .........
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That's a negatory. Cops' primary functions are crime prevention and criminal investigation. The NPA are responsible for prosecution of offenders...
 
Bryn26 said:
Let me help you. Pyramid schemes are NEVER sustainable. That's the whole point. Affiliate or pyramid marketing is not officially a pyramid scheme, although some people think it should be. Amway and similar companies are highly unethical in their conduct - the concept is dishonest about the group's earning potential and they've even been nailed with fines in the past. The Federal Trade Commission has warned the public to stay the hell away from multilevel marketing.

You are highly misinformed about this topic and the topic of business ethics.
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I think that was the whole point he was making. It only becomes an actual pyramid "scheme" when there's no product being sold. If there's no product then there's no net income entering the scheme except for investors and sooner or later it collapses.

Sweeping generalisation much? Which companies are similar than Amway? All companies that use multilevel marketing or referrals or just ones that engage in unethical business practices? Just because there are some bad apples doesn't mean they all are. Just because Enron was scamming people doesn't mean that all energy companies are scamming people.

Rather than staying clear of multilevel marketing people should just use common sense. The saying goes if it looks too good to be true if probably is. Most products only earn about 10% profit so if returns are way more than can be justified by this it's most likely a scam. If you need to invest money directly something fishy is going on like it being a real pyramid scheme that's just using a product to legally market itself. Companies should make their referral money from selling products and not from investors. Also if there's no need to market the product then where is the extra money in order to justify the referral coming from? Such marketing usually relies on the referral system rather than the product which is a recipe for disaster.

As this requires investment it's probably a scam. Besides for this a real company won't put limits on what you can earn as the more business you refer the more they make. They are relying on the fact that some people won't earn back the money the spend. What's also a giveaway is that they rely mostly on the referrals to spread the product. A product that's any good can market itself and only rely of referrals for extra income.
 
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