Saturday, 18 May 2013

MLM/Networking Scam or not?

Let me start by directly answering the title. MLM/Networking business model IS NOT A SCAM...


What I mean is that true legitimate networking should only be a way of distributing the PRODUCT or SERVICES. Not just any product, but quality fair priced product. Products that people buy because they need or want it NOT that they have to because it is required.

Some very good example of true networking companies are AVON, MSE, Tupperware, Sara Lee, Red Logo, etc.. Im sure most of you are familiar with most of these companies. From the start, there is nothing you can complain about them. You immediately know without doubt they are doing legitimate business.
The same thing also happens when you are invited in one of those dodgy seminars, trainings or job interviews. You immediately have a bad feeling the first time you hear their opening spiel. That is because they really are a crap. They do not sell products or services, what they are selling are promises of riches, false hopes and dreams you can have in a short period of time sometimes without doing anything. Many of them also comes with products just to avoid or work around legalities, but it is very clear on how they make money. Its all about recruits/invites/heads you put below you. Their products are just junks and OVERPRICED because what you really pay for is the commissions of those layers above you going up to the top of the pyramid, not the value product. This system is what I call PYRAMIDING SCHEME and that for me is a SCAM! Unfortunately, there are many of them out there, or shall I say MAJORITY of these so called networking companies are RECRUITMENT BASED and therefore a Pyramiding scheme, a SCAM! 

Common pyramid networking scheme scripts and reasons

 Here I will be discussing most of the commonly used lines,crooked teachings and tactics of this fraudulent recruitment based networking industry

1. Playing around terms:
 "Everything is a pyramid, your family, church, school, your job and even the government. They have one head or at least a person above you who is over you and better off than you. Therefore we are not any different "

"everyday we do networking, we talk about nice experiences and things to our friends, post it in facebook or tweet it. This is also what we do."

==> Many of us already have a bad notion to the of the term pyramid and networking and those are mostly the scripts they use to diffuse the smell of their crap.
 Pyramiding scheme is more than just a structure. It is about the principle or description on HOW THE COMPANY MAKES MONEY(Recruitment/downlines).
 On the other hand, networking on that script is used as a general term. The networking that we do everyday is the innocent and genuine expression of our sad, happy or exciting experiences. Their networking is the dark side. They do it for a purpose or a motive, much like a predator hunting for prey. They are starving to make money out of you. That is why it is not so surprising that they will do everything even nasty things like tricks, hard convincing, deception and every weakness they can exploit just to convince you to join. What saddens me more is that they also do it to their family and good friends which most of the time ends their good relationship with them.

2.About risk
"risk is essential it is for your success. risk is part of life, there is no way to avoid it, you just have to accept it."

Half of it is true but the other part is a lie. Take note, Half truth is still a lie. They do this to prepare you for the risky business they are about to present, and so that there will be low resistance in letting go of your hard earned money to them. Let me tell you the whole truth about this trick. Not all risk are unavoidable, you dont have to "just accept it", instead wisely manage it. This is the truth that they don't want you to know, they even stop you from knowing this fact. I actually hear them first hand saying: "dont think too much", "Dont over analyze", "Dont be too smart" and "Dont talk or ask advise from your family and friends after this seminar/meeting". In other words its them simply telling you dont use your head, be an idiot give us your money. Im sure if you have gone to one of their meetings or talk to one of them your not a stranger to this experience.

Let me share to you my own understanding about risk and how I classify them aside from what we usually know as low, medium and high.

Two of my main classification are what I call innate/natural risk and created risk.

Innate or natural risk is the kind that is upon us since birth. It is unavoidable but most of the time manageable. Management of this risk does not completely eradicate it, your just minimizing the chance of it happening.
>the risk of you getting sick- no matter how healthy you are there is still the chance you will be sick in your lifetime, some of it might even be deadly, it can be managed by keeping yourself healthy, balanced diet, exercise etc. But there are also things that you can not control like your genes.
>accidents- you live and breath this risk, this can happen anywhere in anytime, when you walk up and down the stairs, when you drive your car, when you cross the street, cook your food etc.. etc..This can not be completely cleared out but can be managed by following safety rules and guidelines.

Created Risk- as the name suggest, this risk is the result associated by your actions/decisions. Although you can have complete control over it. It does not mean you will completely steer away from it. This risk is essential to your growth and learning, However this can also lead to your complete failure if not managed properly. The way I manage this risk is to divide it into two kinds. The ethical/positive risk (the one I take) and the negative risk, (the one I avoid). These two kinds of created risk are mainly determined by the "Why" or the reason for taking it and the effect on it to others.

Positive created risk- These are the risk you allow to expose yourself with the consideration of how it will affect others in the hope of getting results that are positive in nature. It can be for your learning, growth or the common good. Even if unsuccessful there is still a positive gains mostly learning's, good friends and thier support and a step closer to your goal. 
>starting up a legitimate business, charity, foundation
>Science experiments and inventions.
>Legitimate investments

Negative created Risk- Risk resulting to actions or decisions for satisfying selfish desires that are negative in nature. Most of the time also resulting risk or negative effects to others. Even when you are already successful in getting what you want. It is ill gotten and negative in nature and therefore you still have to pay for it sooner or later, sometimes at a much higher price. There is no winning in this type of risk.
>robbery or theft
>Smuggling and other illegal business
>Recruitment based networking- This is basically what this blogs topic and I feel the need to explain why I classified this questionable industry under my negative created risk. First of all is the reason why people venture in this kind of fraudulent business. And it is what you think.

Admit it or not, most of us (including me)  has this weakness. This is the part of you that they feed on. It does not look so bad, in fact there is nothing wrong with getting rich and have a good lifestyle but the problem is the "How to get it is not considered". Furthermore, the system itself in recruitment based networking is totally wrong. Those desires are purely in your "id" person where ethics does not exist. It is very a strong desire and can be dangerous if you gas up that fire. Im sure your no alien to their show offs like flashy expensive cars, huge house and lot, bank cheques , expensive tours abroad, high end electronic gadgets and all stuff luxurious. 

 You may end up successful which is very unlikely but in the process you lied and deceived a lot of people including your family and best friend. You can lose them and damage your reputation or worse, you influenced them to be like you and get their lives ruined. I dont have have to enumerate all the bad effects/karma this will give you as it is very obvious. One can predict your future as easy as filling the gaps of missing letters from A-Z.

3.Optimistic, Pessimistic or Realistic?
For these people there are just two kinds of person, the enlightened ones (positive thinkers) that believe everything they say without question and the negative close-minded people. The ones who still has a working brain to think if they believe or not. I can see some similarities from the way a cult works. Brainwashing you in every way they can. If you're already in or just about to, they will prevent you from being influenced by the outside world and instilling in your head that they are your only hope to financial freedom. Everything else like employment and real business will only lead you to failure. They call us names like negative thinker, a close minded person, hopeless, useless person with no dreams in life.

They say these things because this is what they sell, dreams. They want it to be your reality, that is what you pay for when you join them anyway. They know you can only win in the realm of dreams where all they say happens. That what you are doing is perfectly fine. Wherein you recruited many people, your recruits recruited many others as well and that there is no such thing as saturation point. There are infinite people joining in your downline everyday. For us sane people, these are just big "If's" that is not likely to happen as the real world shows us. Its an established fact that only 3% of them makes money, their scheme wont last long and they system itself is unethical. Not believing them is far from being a negative thinker, that's just being realistic and doing what is right! Also, dont get me wrong I believe in positive thinking. However, we still should be attached to reality and doing what is right and ethical in the first place.

4. Employment vs Networking
One of the crooked teachings of these people is the anti employment mindset. Although we must admit it has its own limitations, I strongly disagree with the way they demonize it. Employment is the most basic way of living, almost all of us survives through and because of it. Our society totally depends on it, imagine if there are no nurses and doctors, army, police, drivers, janitors, farmers, media, firemen, teachers, architects, engineers, lawyers construction workers etc.. Can we exist? Even the the capital we need to start a business mostly comes from being an employee. Considering how employment is essential to us, is there any point to preach hate on it? Even if has its limitations we can not do away with it. The solution is to use it to get money and buy assets.
Its very ironic for those people in recruitment based networking to evangelize positive thinking when they are throwing shit on people that are working. Especially those on a minimum wage. But look who's talking? They on the first place are deceiving people to make money which is wrong and with almost a negligible chance of success. At least people who are working on a minimum wage helps the countries economy, doing an important role in a functional society and are able to feed their family. Recruitment networking on the other hand are just plaguing peoples lives especially the youth through their lies, deception and erratic teachings. At the bottom of their pyramid where 97% them are, they can not even feed themselves.

5. Real Business = Recruitment based Networking??

Almost all of there speeches, flattery and inspirational lines are based on the beauty and advantages of a successful business. They even try and compare themselves with big companies and popular businessman in an effort to make them look legitimate and misled people you can be like those tycoons through them. Business sells products/services that people need use and want PERIOD!! Other than that is monkey business!! Selling hopes,dreams and promises is worst! 

6. Blasphemous!

It is not rare for some of these recruitment based networking to use the name of God in there desperate attempt to convince people they are not the bad guys and are doing Gods will.  I often see a lot of their advertising materials using lines from the bible and glorifying God as part of their marketing strategy. Sadly not everyone is wise enough to recognize it.
Let this be a caution to this savage strategy of getting people in their scheme. This cult like way of building downlines are beginning to gain popularity. This will not only harm you financially but spiritually a well.