Pyramiding or Networking, a scam or fraud?
By aaronfyzeon
@aaronfyzeon (1920)
Philippines
December 19, 2011 4:09pm CST
We have experienced a lot of times to be invited by our friends, co-worker, someone you just met and even our family members to join a so-called business opportunity seminars. We somehow have a preconceived notion that these type of businesses are fraud or scam!
There are lots of companies which is, I think doing a pyramid scheme. Recruiting, promise of greater wealth, small investments, charms and confidence, testimonies of past successes, introduction of certain products (e.g. 8 in 1 coffee, prime juice, etc.), obviously rehearsed speeches, money through recruitment, talks telling us to recruit but not speak of the company very greatly outside, presentation of cheques with outstanding numbers, etc. are some of the things presented by this company.
I have joined some of these companies before and of course I have invested a large amount of money (for me it is) for me to be able to join those companies. I am kinda new to this kind of money-making scheme but then unluckily, I did not succeed because I did not focus with it.
The hardest part of it is that I really have to sell something which for me is not a necessity for most people so I really must do a hard sell each time I will be approaching a prospective buyer.
I have worked in the brand-new car sales as a vehicle sales executive wherein I am being spoiled in a manner of selling. because people will just come to you to buy brand new cars. And they will be the who will act stubborn because they will try to call you every now and then asking for the update of their purchase.
I will just state one thing, For me, a scam or fraud would be putting a very large amount of money into something that you really are unsure if the investment would get back to you or even worse, say good bye to it. there are lots of times in our lives that we do take risks. Let us just be careful always.
10 responses
@Aja103654 (5646)
• Philippines
20 Dec 11
Pyramiding and networking, huh. I don't know anything much about that, since I don't have any experience related to it. At first, it got me a little tempted, strangely fortunate, I did not have enough capital to start any investment. From my friends, I learned a few things about pyramiding and networking.
They said it's a difficult way to earn money, you have to focus on it 24/7. The more active you are, the more money. If you are the lazy type, you wouldn't earn much... unless if you are extremely lucky and have lots of rich friends whom you sell your products to.
Pyramiding and networking only works well for someone who knows many people. It also helps if you have the charisma and know-hows of the job.
My boyfriend told me that to be on the top and to earn the big amount of money, you have to step and fool many people to achieve it.
However...
I can say this type of business is double-edged. One can earn from this system through taking advantage of others(now that is a scam!) and one can also earn from this by helping one another by taking advantage of the system(not the people)
Those who are scammed are those who are ignorant or have limited knowledge about the system. They can only blame themselves for being fooled. they should have investigated further, not put their trust easily on some stranger. Besides, business has always been about gambles, so they should learn to deal with the worst outcomes possible. What they can do is learn from these experiences, apply their knowledge on their next attempt at money making, they can't let it stop them from trying any business in the future. Quitting might save us from scams, but it won't bring us success either.
I would like to share a very important lesson to everyone. This was from a review instructor who taught us a few things about life.
Shi-t(evil things you do) might get you to the top fast, but it won't keep you there for long.
So be good people, everyone Don't deceive others for the sake of your own success.
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Good morning to all of you guys!!! Wow! your responses really made me activated today! I am a member of a Multi-level Marketing Business(just a good name from Pyramiding) as well just like francismalz. I used to curse this kind of business before. Snapping my friends out and totally ignore them when they invite me to some business opportunity seminars and stuffs like that. So bad of me. But then who wouldn't think I would swallow all the things that I have said before once my friend told me to sign up for one which actually costs a VERY LOW amount. Even less than the amount I have been spending for drinking sprees and treating my friends in a night out.
If it's going to be taking advantage of other people with their imbecility then it is definitely bad. But then I must tell all people out there too that if we have agreed to join or sign up for something then it is our responsibility to take good care of our earnings or business.
Being rich for a certain amount of time will definitely work for me because I would gladly save up for the rainy days. And since we are all aware that these business won't really last a lifetime then we definitely know what to do!
Aja103654: here in our company we do not sell anything but entice the members that they are going to be able to have a loan with zero interest. Who wouldn't say no to a loan here in the Philippines if it's going to be zero interest. right? Then after you have paid for that in a particular span of time, you will be granted to loan again double that amount. That's why the growing number of members are really very fast!
It is really sad to know that some people are taking advantage of others just to step up. I am very transparent to the friends that I have recruited (because they want to loan too) that I will be earning from them if they do this and they do that. They also need to tell their future members the same thing.
Thank you so much for sharing guys! Have a very merry Christmas to all of you.
@francismalz (520)
• Philippines
20 Dec 11
Exactly right. they might get to the top but it won't keep them there for long. For me, network marketing should just be part-time.
Deceiving other for success is the worst business idea ever.
But for me, networking is for everyone. Just like Facebook, a social networking site.
1 person likes this
@Aja103654 (5646)
• Philippines
20 Dec 11
There are those who want easy money, and don't have their guilty conscience with them to stop them from doing harm to others.
1 person likes this
@SIMPLYD (90722)
• Philippines
20 Dec 11
I feel the same way in taking risks. When a networking would ask for money, i know that it would someday turn into scam.
Besides, i would always ask first what will be the things to sell. If i see that the products are hard to sell, i back off.
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Hello there to the both of you. Yes, almost everything nowadays always ask for money. But if the amount is extremely low and the benefits are that good then I may take the risk. It will now be up to my effort on how will I take care of it and manage my money. Since most of the networking business here in the Philippines turn out to be a scam most of the time then saving most of your earnings should always be done. At least you have seen it coming if it turns out to be bad in the future.
Thank you for sharing! I really appreciate both that you have posted.
@SIMPLYD (90722)
• Philippines
21 Dec 11
Well, at least in restaurants , bakeshops , stores and businesses of the like, you give money in exchange for goods that you can consume outright.
But in networking it's too risky to give first your money, without even seeing what is the product.
@francismalz (520)
• Philippines
20 Dec 11
Life is full of risks. I do understand that. It turns into a scam if somebody is recruited under you but you didn't receive the money or paycheck.
Every business, networking or not, always asks for money. Restaurants ask for money. The bakeshop asks for money. That's the reality.
Not everyone is a good sales man so you can ask somebody else to sell the product for you. Share the profit with him.
1 person likes this
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Yes we must really know all the details of every business opportunities before we sign up for it. That is why we really need to go to their seminars and hear what they say, because our recruiter might tell us a different thing from what's the truth about what we will really get just for us to sign up. It is also good to check out what they have earned. Thank you for sharing.
@sincere4frdship (2228)
• India
20 Dec 11
Well...
I have come across many companies like this through friends and relatives of mine and joined some like AMWAY. But some companies are who has nice products range of FMCG.
If a person is there just to earn then they should have good social contact and those person whom he introduce should use products of the company otherwise it's just a wastage.
Recently I joined a company which deals in aloe vera and joining was free of cost and there is earning oppurtunity too if I build a pyramid under me but there would be no use of that if they don't use the product. I joined because I really liked that product and I have to use that for some time being.
There are many fraud too which return money to introducer as they don't go for long time and people has been cheated by such company various time. so if any body wants to join then should think thrice before taking a decision and should ask some question to them self like why they want to join ?
Thanks
@aaronfyzeon (1920)
• Philippines
21 Dec 11
People ask themselves why they should join any business opportunities simply because they want to improve their way of living. To earn money to support the lifestyle they have chosen is the key for that. I wouldn't think thrice for a small amount (as in really low) if the benefits are very nice. and in a weeks time, my investment already has returned. We do not sell products. All members are just entitled for a zero interest loans. and many other benefits.
@francismalz (520)
• Philippines
20 Dec 11
8-in-1 coffee and Prime Juice are some of the products of UNO Unlimited Network of Opportunities International Corporation.
Recruiting but not speaking the name of the company is the strategy of some network marketers. Not all network marketers are like that.
Investing some money is really part of business. No capital means no profit. It's safe it your friend or relative recruited you. It is very dangerous if you don't know the recruiter at all.
Being a car sales is great way to earn money because cars are expensive. you can get commissions from car sales.
I do network marketing part-time but I have other activities that can keep me occupied. I do understand that those on top earn huge money but it's fine with me as long as I also earn and they help me do it the right and friendly way.
Correct me I'm wrong. Network marketing companies have a culture that some people do not exactly understand. Some CEO in non-MLM companies are greedy to their employees. And the salary of the employees is taxed too which means there will deductions to your income
@Aja103654 (5646)
• Philippines
20 Dec 11
right there, francismalz. Some companies are greedy to their employees. How can they be like that when the employees are vital to the company? Without employees how could a company move? Everyone deserves a compensation for their jobs, most of them deserved even higher compensations than they are receiving currently.
And I have the government to be concerned about, what did they do to those taxes?? Hm, curious.
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Hello there! Thank you for sharing an example to us. I have just started a week ago and invested a VERY LOW AMOUNT of membership fee plus a few pesos for the ID. in a days time my investment has already returned to me as a commission. Why? I have just shared this to my friends who wants to borrow a huge amount of money from me. So they were already the ones asking me about it. and take note, very stubbornly asking me about it! so there! I let them sign up under me. and for them to be able to get their loans, they need to share the info and the company to their friends who are in need of cash as well.
It is too bad that the employees of some companies you have mentioned have taxes. Well, we cannot really escape taxes because it is legally imposed. What did the government officials do with those taxes? well it is another interesting topic to be posted.
You will be able to know if the company that you have signed up with is greedy. It will have a huge amount of membership, and the earnings are not that high. or if you want to get a lot of earnings then you must really do a cartwheel tumbling with your business to earn much.
If you will join a company, make sure the products or services would really be beneficial to you or to your friends as well. I have just shared this to my friends who are in need of a loan (and what we provide is zero interest loans though) so there! The small amount of investment was returned in a weeks time.
Thank you for sharing guys!
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Hello there! Well, is is hard to earn with Networking or pyramiding if the products that you are going to sell is superficial and not to mention very expensive. If there is no product to sell, the benefits are very enticing, and the membership is NOT that much then it is really a good thing to start doing this as a career.
@mensab (4200)
• Philippines
20 Dec 11
yes, you are right. we have to be careful especially if we are investing hard cash. there are many opportunities out there which try to woo our cash and efforts. it is up to us where we invest them. for me, nothing beats the time-tested and secure investments in banks. most banks now offer mutual funds and bonds in which you can put your money. if one wants to work, better hone and develop skills that will put you in a better position. wishing you the best.
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Yes, but do you think it would be better if we could just do it part time? spend 2-3 hours in one day for that business? I do get your point. A huge amount is a very significant amount for us. We should not really waste it. But if the offer is really promising and the fee is not that huge then there is no harm gambling that money. right?
thank you for the wonderful response and Merry Christmas.
@craziestqueenever (1819)
• Philippines
20 Dec 11
It depends on the company itself. Not all Pyramiding or Networking is a scam or fraud. We all know AVON, right? This company is a direct selling company wherein there is also a Networking involve. The more you have a recruit the better. To sum up things, Not all are scam or fraud.
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Hello there queen. Yes not all pyramiding is a scam. I have swallowed everything I have said before to this kind of business process. I have been fooled once with a big amount. Now if I will be fooled again twice for a VERY LOW AMOUNT then I really care less now. As long as I do have another nice ID (hahaha), life insurance, medical reimbursement, able to make zero interest loans, and potential earnings if my downlines would take this seriously then that would be definitely fine for me.
Than you for sharing and giving an example. Yes Avon thrives until today. Plus their products are very affordable. a very strong company. Have a wonderful Christmas.
@wellxpress (15)
• Philippines
13 Mar 12
In this time of global crisis we must be an open minded person, always think positive. We have to understand that the reality of certain things can only be proved if we have to try for it. Networking or MLM is a system that most of the companies used today to seek an opportunity for all.
It's really hard on our part if there is an involve of money investment to join with this systems. NOw, the wise decision we could make in our part to find out which will give us a good result is to try it for free. There are some systems out there who could provide a free joining and letting us to experience their marketing strategy before to invest money.
If you need to know some of these free systems just contact me and I'll be happy to share it with you.
Cheers,
James
@aaronfyzeon (1920)
• Philippines
21 Dec 11
Hello there Dex, yes most of the networking businesses in the Philippines have turned into a scam for quite some time because all or most of the people from the uppermost levels are manipulating the earnings! For me, 1 or 2 years of getting much money and saving a lot would be fine. But sadly if it turned out to be a scam, all the happy days of earning would be over. At least I was able to save a lot and start a new business out of that money.
Easy money is really easy to spend. But not for me because I am a very wise person.
This is the first time I have heard of the online networking. Is it really possible? how does it works? Thank you for the nice reply.