MML's and Pyramid Schemes

[ABOOT03]

Hey all,
Just wondering if someone can give me some advice about an opportunity as it seems, that has been presented to me by some friends in my church.

An aquaintence of mine at church approached about four years back about joining/ or starting a business. It involves an organization called Quickstar..(I believe it was formally known as Amway.) Anyways, the opportunity inolves Quickstar, and an organization call BWW (Britt World Wide) The organization claims that you can make a commission to help companies and individuals buy household and other items over the internet, instead of through the store. My friend has introduced me to several people within the church which are involved in this business. They claim to be backed by a christian leadership type organization. What I mean by this is that they said that whenever they have a question regarding any aspect of their business they can call the, "Head Honcho." The head honchos are described as self made business men and women who have done well for themselves, and who have tried and perfected different aspects of the business.

Just wondering if this is a scheme that is going to take my money or what?? I know for a fact through different sources that each of the people in my church have establised triple figure incomes after 2 years in business. I know that I am at a vulnerable age(being only 18). I have a self establised business sense, and have had my own expanding business since I was 12.

-I'm sorry if I'm jumping around alot. I'm writing this in the wee hours of the morning, and I'm trying to finish because work starts early monday..

Anyways, I would sure appreciate any advice on the topic. Have any of you heard about this organization?? Are there any accredited people that you could put me into contact with? I believe my friend brought up that the program is backed by Joshua Mcdoull, and Ronald Regan once spoke highly about it.

I've always been taught that if something is to good to be true, that it probably is. Are there no exceptions to this??

 

[Kokopelli]

I am not familiar with that, however I have had some experience with Amway. From what I remember, the idea was to focus on getting more people into it opposed to selling products. As more people would come into it, they would buy products and you get a bonus off the sale. Me personally, I would strongly advise against anything . When I tried the Amway routine, I ended up sinking more money into it that what I got back. Some people have become wealthy off it, others lost a lot of money on it. All in all, it probably depends on how motivated and dedicated you are.

Peace be with you - K'pelli

 

[billwald]

One of the TV networks (CBS?) just did an expose' on this scam. They showed that the average "investor/worker?" made around $300/year net and the big shots got rich selling promotional stuff.

I suppose you can't lose much except time if you try to sell product and ignore the convention hype. Cheap entertainment?

 

[iamruben]

what is MML? do you mean MLM (multi level marketing)?
as far as i know in my country Amway is a MLM. so i guest we are talking about that.

well i also against that, been there done that. no good.
the pyramid will only profit the up layer (i don't know if im using this term right ), then the lower layer or people who late joining this pryramid will be in vain trying to get more money. because each time they try, they have to profit the upline first. even they say downline can be more success then up-line.

even if Joshua Mcdoull and Ronald Regan really backed this program. Do they success by following this business? they just trying to be nice person to the people in MLM. same as Robert Kiyosaki who wrote "Business School" it is soooo MLM. I like the Rich Dad, but Kiyosaki not success by this business.

so, use your common sense, how many successful people in this world get a big fortune from following those Pyramid schemes?

but, you can learn from them how to motivate people to do something, and how to talk in public and to deal with rejection. i think the only good from MLM is that.

 

[sowellfan]

Run away as fast as you can. You say that there are already a few members in your church. Of course, each of them needs to recruit at least 5-6 downline people in order to be successful. Then you need to recruit 5-6 more to be successful. So if everybody is recruiting, who is there left to buy from you?

You might want to ask yourself, "Have they ever approached me about actually buying their product?" The usual answer is 'No.' That's because it isn't about selling product, it's about signing up new people. There'll be a relatively small sign-up fee, then they'll tell you that if you *really* want to be successful, then you need to make a good initial order. Of course, they'll make some money, probably, depending upon how much you order. I could be wrong on the specifics, but that's how Mary Kay did with my wife, and most MLM's work the same. They'll also likely want names and phone numbers of a bunch of your friends and families, so that they can have warm leads. Of course, they aren't going to try and get these people to buy products - they're going to try and recruit them, and they'll tell them that *you* gave them their names (does wonders for friendships, Amway does).

Also, you say that these people have established triple figure incomes after two years. I'm assuming that you mean on the order of $100,000 (six figures), not $100. Ask to see their tax returns if you want a truly honest answer. Very few people will overstate how much money they made on their tax returns, since it increases the bill from the government. Hopefully you can tell from the tax returns how much they made from their day job (assuming they have one) versus how much profit they made from Amway. Also keep an eye out for their business expense deductions. If they claim $100,000 profit from Quixtar, but they have business expense deductions of $60,000, then they've only made $40,000.

One of the common concepts that I hear expressed about MLM'ers is that some (not all) believe that you have to look successful to be successful. That means buying a nicer car than you can afford so that potential recruits will look at your (apparent) success and be more likely to sign up. Keep this in mind when they're telling you how successful they are. Often, though, they'll just drop hints about how they're doing, financially, rather than give you any concrete figures that can be easily proven or disproven.

Good luck.

 

[reznwerks]

Don't do it. I've been there and done that. It's not what you've been told. Use a good search engine and type in -quikstar scam bogus fraud and whatever you can think of and you will have your eyes open pretty quick. Only a few at the top may be making some money but they have been and are being investigated big time.

 

[serendipity79]

I have researched many of the MLMs, as I got involved with Market America, and did my homework. The reason Quixtar came about was because nobody would listen to anyone from Amway. Although I am getting ready to leave Market America, out of my research, if there is one that you would want to do, you should do Market America. It requires the least investment, has the highest pay out and also requires the least number of distributors working under you. Honestly though, the best way to get rich is to invest over a long period of time. it is much more Godly also. all of the MLMs only talk about getting rich buying expensive stuff and the like. they suck you in, instil greedy values, and can completely ruin your friendships with others. Ultimately it is up to you, but you should pray to god on it.
Praying is what made me decide to quit, after praying I did a bible reading and read:

2 Timothy 4:3-43 For the time will come when they will not endure sound doctrine; but after their own lusts shall they heap to themselves teachers, having itching ears;
Following the teachings of these organizations goes against sound doctrine. It teaches greed.

with that in mind

Hebrews 13:5Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee.

​

Just something to chew on.

 

[Playerslight77]

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[Fit4Christ]

Where o' where was this advice 7 years ago?? And if it was there, why o' why did I not see it?? After a divorce and bankruptcy as a direct result, I can honestly say these things just don't work. Follow the advice of many of these posters... do not get involved with an MLM!

 

[Playerslight77]

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[Fit4Christ]

I'm so sorry to hear about your misfortune with these companies, but I can't say it's unusual . I hope you're doing better now that your out of the MLM cult...

Yeah, I'm fine, thanks. Still have a lot of debt to pay off as a result of things that happened, but God is leading the way now. The thing is, I really liked some of the products. I just got sucked up into the "image" thing and "potential" promise. I know there were others who were in similar situations.

 

[Playerslight77]

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[Fit4Christ]

I have also found that it tends to be family who approaches you to be in these sorts of groups. It makes it next to impossible to get away; it's a horrible cycle. The image and potential are definitely things that people tried to sell on me, and it was difficult to back away from them. Luckily we kicked em out of the house long before their brainwashing tactics took hold, but it was hard. My wife and I both have economics degrees, and we still took a couple of days to determine that it wasn't going to work the way they had told us! Had we not had a good understanding of statistics and finance it would have seemed like a good deal, as it was really sold prettly slickly, and it was a convincing presentation. I can totally understand how people get sucked into these sorts of MLM scams.

As to the products, we priced them out, used one or two, but the cost savings were not sufficient to warrant us remaining with them. I found it to be too much of a hassle.

But I am glad you are doing much better! I'm also glad that God has led you out of that situation and into the light. Hopefully you will find a calling that won't leave you with such a high amount of pain, and maybe will even be rewarding...

I have a business degree and knew of some of the risks. My motivation wasn't necessarily to become a millionaire (although that would have been nice). I was more looking for something I could control - my time, my efforts, my income. But the more I was drawn in, the more I gave up my principles and adapted to theirs.

The products were environmentally safe, all natural products that made sense to me. If I had to pay a little higher price for biodegradable laundry soap, so be it. Still today, I hate throwing away something that is recycleable or is environmentally damaging.

Seeing where I was and where I could be had I stayed where I was previously, I would not be the man that I am today. I have found a calling that God has placed on my heart. I'm about to embark on a ministry in the health and fitness industry.