Can My Opportunity Still Be A Scam or Ponzi Scheme If There Is A Product and I'm Making Money?
In this video I discuss the fact that even if you are making money in an online opportunity where there is an actual product it could still be a scam or ponzi scheme.
A lot of people think that just because there is a product or that they are receiving income from a particular program or opportunity that it is legitimate. That is the furthest thing from the truth some of the best scams and ponzi schemes have run for years before finally collapsing.
If you have ever been a part of a particular program or opportunity that turned out to be a scam or ponzi scheme I would love to get your feedback below.
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I joined an MLM called Fortune High-Tech back in 2006-2007. Everything was so flashy at the get togethers and there were all these people talking about success. It seemed like quite the opportunity. Basically I ended up just buying some overpriced vitamins for a year and didn't renew. I looked them up awhile ago and the FTC apparently closed them down for being a pyramid scheme. That was my one and only foray into MLM. I know I am not a good sales-person and maybe I could have been successful if I had great people skills. But the vast majority of this particular MLM didn't make money. Somewhere between 96-98% of recruits lost money depending on the articles I read. Oh well it was
@penname I remember FHT (Paul Oberson from top income earner from Excel Telecommunications). You are correct that a very large majority of the independent distributors never make more than $1,000 with any particular company. Sad but true.
loll soooo I def think I joined one for sure. It had to do with a particular crypto coin mlm. I don't want to say the name cuz I'm not tryna hate lol. But I got out of it wayy long ago cuz things just didn't add up with that company and it loooked hella sketchy!
@awarenessraiser I appreciate you sharing and there is no need to name the company as if you seen one and you have seen them all. However, I understand as you have the trolls that will perhaps try to come at you when you are just stating your opinion.
"People love to drink the kool-aid" lol ... I do couple MLM programs but at least they have a real product (wine and water) unlike most of these other "money game" opportunities 😂🤣😂
Yes, this is very true. I think the best indication of whether an MLM is a scam or not is whether they focus on selling real products/services versus recruiting members/selling distribution kits.
@stackin lmfao! Wine haha. I want some wine yooo whats goody!
I think we all want wine haha
@stackin yeah people nowadays like to trash the traditional MLM industry due to all of the high paying commision programs that exist today. However, without the Amways and Herbalife's paving the way a lot of these programs today would not exist.
After much hessitation I joined a MLM travel website while in college. A good friend of mine was making a little money via commission with them and being 'groomed' by a second tier prodigy.
3 weeks after I signed up and bought the sales package, the company was bought out by a bigger travel firm that liked this MLM business's website name and layout. I got no money back and the sales materials went into the dumster.
Were they selling real product? Yes, trips were being booked and taken. But the real profiters were those that entered 2 or 3 layers earlier! 😐
@em3 yeah this industry is very shady and this type of thing happens more than people are aware of. Companies in this space all the time are getting acquired and the new company's goal is to use that database of buyers to drum out even more money from them regardless if past obligations were honored or not.
I have not and hope I never do. Scams can be hard to detect until they are proven to be a scam and the jig is up
@rawpride yes there are a lot of scams out there and most people do not know that they are part of the scam like you said until the fat lady has sung, lol! By that time it is a day late and a dollar too short.
Ive been a part of a few MLM schemes. And havent been successful with any of them.
However, I can say, those that I was a part of ended up being sued in huge class action lawsuits. Needless to say, I didn't participate in any of them and wished retain my rights.
@sreepyeldarb yeah this industry is ripe for deceit and corruption at the highest levels. The way that some of these companies operate would not be tolerated if a lot of them were public companies. Nowadays it doesn't take much to start your own program and what all of the resources available sadly anyone can open up shop!
An opportunity can definitely be a scam or ponzi scheme even if you are making money. It's quite possible that you joined early into the organization. In order to get people to signup or join, they pay people to make it look like a good, legitimate opportunity. After getting enough users/buyers, the organization typically closes up shop since paying out that amount of money to many users is typically unsustainable.
@rockjon agreed as this is the typical way that a classic ponzi scheme operates.
Yes, that's what I thought. I do think that certain Ponzi scheme that are crypto based might continue for a bit longer compared to a fiat version though especially if they can technically virtually print more coin/tokens out. However, I do think in the end almost all of the Ponzi schemes will end when the most can't flow in fast enough.
@rockjon you said it all. I just wish that more people knew just what you laid as it would make these programs a lot harder to function as most people would avoid them.
Yup, some scam will reward the first people to join in hopes of attracting a bunch of people, the new people pay for the old ones but at some point it become unsustainable, watch out for "bitconnect"
@hawking Oh, I'm definitely watching BitConnect from a far as it will not be pretty when this thing finally goes down.
meep
Uh...nice ring.
@dhn0411 thank you.
Ethan V. is a scam if you know who he is
@allucky111 I have read some stuff on him that he promoted Wealthy Affiliate at one point, but other than that I did not see much else. Just curious why do you say that he is a scam?
It not that he is a scam, it that everything he announces is a scam, he is completely one sided on the subject. I mean he has some merit in what he's saying but cmon when all he presents is a scam to what he tells it to me is why listen to him. I like folks who present validation for what's being told but when validation based on opinionated can put your reputation after awhile in debatable matter.
@allucky111 I agree that everything is not a scam, but a lot of programs out here do fit the mold of what you would consider a scam or ponzi scheme. I do not call them this until they stop paying even though it is just a matter of time before the programs I have mentioned do. I appreciate you sharing your opinion on what I had asked you and it makes sense why you feel the way that you do.
However, you have to keep in mind that Ethan V is also running a business just like Behind-MLM so I do not take everything that I see and hear at face value.