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MLM schemes actively promoted via forums
Many individuals using the internet are savvy enough to know that pyramid schemes and MLM(Multi-level Matrix) schemes are illegal and stand no chance of making any revenue apart from finding other victims who have to find other victims to satisfy the system, it doesn't take much to realise that the supply will never sustain the demand if all goes according to plan for the pyramid scheme or MLM(Multi-level Matrix) scheme, more victims have to be found until the pyramid scheme collapses, the only people making any money from this are those at the top of the pyramid, and the instigators of this scam, who are usually one and the same. Internet fraudsters, con artists, and snake-oil salesmen are coming up with new and ingenuous ways of stealing peoples' money, and tricking them into their pyramid schemes. One such so called business opportunity going the rounds of being advertised is the standard "Make $1000 - $2000 a day working for 1-2 hours a day from home". As the old adage goes, if it sounds too good to be true it usually isn't. It usually starts off by claiming this is not a pyramid scheme, or an MLM(Multi-level matrix) scheme when infact this is precisely what it is. On investigating this so called business opportunity, it is usually found out that the: i) The business is the opportunity.
That should send alarm bells ringing, as there is no viable product or service being offered, just the incentive of a referral payment of approximately 80% of the revenue generated per sale for getting "a victim" to fork out over $2000. Much is made about the so called training and one-to-one mentorship being given, but these are just covers to increase the downline of the potential victim who has to trick other victims to buy into the system to recoup his/her money.
Knowing fully well that pyramid schemes are illegal in most parts of the world, the scammers attempt to circumvent these by producing a cd-rom or dvd of their material to appease the legal aspect that at least their victims were supplied with "something", which also passes as the study material/one- on-one mentorship.
The victim now has to find other potential victims to practice the con on, realising they have been duped at an extortionate $2000, they may go as far as to create a website and use the material suggested from their "one-on-one mentorship" with a devious ad copy making no mention that there is no product or legitimate service, just an all out attempt to get a premium signup, usually by promising a lavish lifestyle with little or no work, the signature of most get rich quick scams.
Simple clues to indicate that this is a pyramid scheme is the lack of a product or the clarity of definition of any product or service whatsoever, as usual joining the so called service is the entire purpose of the scam, the business opportunity and phantom product are one and the same and are incorporated in having to signup for the only type of membership on offer, that of a premium membership. When the scammer emphasizes that there are no stocks to sell, or no cold calling, rather than pique a potential investor's interest these should instantly raise red flags, instead of justifying a product or a suitable legal service, attempts are made to allay potential investors fears by showing how much they could make from the commission based structure, as with any scam, dangling the carrot infront of the donkey will pay dividends especially if the victim is ignorant and desperate.
Author Resource:-
Mr D Stevens is a reviewer at Email scams
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