Multi Level - Big Money? No. Big Scam? Yes.

I usually don’t do much complaining in these blogs. So, just as a heads up…this one is a big rant.

One thing that never ceases to amaze me is the regularity in which one of my friends, or someone I know, will approach me approximately once a year and ask me if I want to work underneath them for this “great new company” they just started working for. The pitch is always the same…they tell me how they recently started working for this great company that sells an amazing product such as: cell phone service, makeup, facial cream, candles, vitamin supplements, etc. They commonly say something to the effect of, “this is a really great opportunity for you to work for yourself and make a lot of money. All you have to do is pay $500 upfront to get the kit/product/etc. which will get you started. But even if you can’t work for me, you should still consider purchasing the product that we are selling. If you work for me and then you can get five people to work for you, you will easily make your money back.”

I think that the majority of people have seen some version of this pyramid scheme in the past but I cannot believe how many people I know who fall for it without even realizing what they are getting themselves into. I have a very difficult time believing that the people who get involved in these types of pyramid schemes don’t have a previous understanding of what they are getting themselves into. Based upon the previous statement I have come to two conclusions:

1 – The lure of riches and the possibility of working for oneself are so appealing that individuals are willing to act against their better judgment when presented with such an opportunity.

2 – Once the individuals are involved and they have put a lot of time and effort into trying to make money, they are unwilling to admit that they really have been conned and been caught up in a big scam.

These pyramid schemes (in sheep’s clothing) aka multi-level marketing, network marketing, referral outreach, etc outrage me beyond belief! The reason why I get so deeply upset is because the individuals who are running the entire operation usually make a very significant amount of money with the knowledge that the entrepreneurial dream of the “slaves” they are using to build their pyramid will never come to fruition. I’ve heard the saying ‘there is a sucker born every minute’ and for the most part, I do agree. However, there is still something fundamentally wrong with preying on people’s emotions, dreams, and desires in order to make money. The sad thing is that the majority of the people who join these programs usually don’t have the excess money necessary to get started in one of these companies. They will come up with the necessary $500-$1,000 it usually costs to join. On average only 1 out of every 10 people actually succeed in these types of companies. The people at the top know this is going to happen. They are making money because the people at the bottom pay this start-up fee (non-refundable) and then never succeed selling the product.

I almost wish I could take all these types of individuals in large, empty swimming pools and then pour large suitcases of cash on top of them, and then inform them that they could not leave. Maybe this would make their choice a little more obvious. Ok, that is an extreme statement. But the way I feel is that essentially these individuals have the opportunity to rot now with a fortune OR they can get out of the pool and leave the money behind in search for a deeper meaning in life. They may have built wealth for themselves, but at what cost? How many people’s dreams have you had to crush and capitalize on in order to get there?

I have not gotten involved in any type of organization like this but I know many of my friends and family members who have. The turnout is never good. They may be successful for a short period of time, but eventually the pyramid begins to crumble and people get hurt in the process.