Grinds My Gears Blog #4 (I Think)- Pyramid Schemes and how to watch out for them

Hey there folks! I know it's been a long time since I last put up a blog, but sadly, nothing had grinded my gears. Until now. Have you ever been contacted by a friend, family member, or even a mere acquaintance telling you about the greatest new "business opportunity" they had for you? Did it involve "working from the comfort of your own home" with the promise of "earning $1,000-$3,000 more a month without having to answer to an employer?" If you have, then you, sir, have been introduced to the pyramid scheme (GREAT time to have a Billy Mays-type pitch, God rest his soul.). What is this, you ask? Well, some people know it as a pyramid scheme, some know it as an MLM (Multi-Level Marketing) company. Any way you spell it, it all means the same thing: SCAM. These so-called "business opportunities" promise you riches and success beyond your wildest dreams. It all seems great, until you encounter the details of it. How can I know, you ask? well, just watch out for these warning signs and you'll be wise in the art of scam protection:




1. The "Orientation"

All these companies have their own way of "recruiting" more "potential businessmen", or better known by the common term, suckers. They do so by holding some sort of orientation. Usually, their goal is to get you to join their company. Once you get to this part, watch out for the next things.

2. The "Ringers"

Now, once you attend these orientations that they have, you won't help but notice all the sharp-dressed people that are attending. Then, you'll be mesmerized by the success stories of these people, claiming to have had their lives changed by these companies. They'll say that before they were involved in the company, they had no time and no money. They'll expect you to believe that the company somehow magically changed their lives. These people are called "Ringers." Ringers are people who are paid by a company to speak wonders about them. Here's how it works: A company gets some guys, rents them nice suits and equally nice cars and has them attend their meetings looking like a couple of big shots. The truth is, folks, they are no richer than you or me. To paraphrase President Barack Obama, "I can put lipstick on a pig, but in the end, it's still a pig."

3. The "Catchphrase"

Usually, these companies have a certain phrase that they like to use to define the "former work life" of their said employees. One company I encountered said that their employees were "sick and tired of being sick and tired." This was implying that they were tired of doing something for nothing, or something to that effect. Another company I encountered described their former work life as "working all day, eight till faint." I think that one is pretty self-explanatory. They do this as a mechanism to try and make you familiarize with them and say "well, gee, these guys were just like me!" and immediately join their company. This is usually the point where you find out whether it is a scam or not.

4. The "Opportunity"

Now we get to the scam itself. No matter what kind of service it is, they will tell you that you can get started right away for a "small introductory fee." Usually, their definition of small is in the range of $200-$300. Now, I ask you, why should you have to pay in order to work? If you had the money to pay for the "opportunity", you wouldn't really need it, now would you? I recently attended a business meeting for a very well known MLM company where the keynote speaker was asked that very same question. His response: "well, how much did you pay for your job? Nothing? well, you get what you paid for." WHAT?! REALLY?! So that little piece of paper with numbers and a dollar sign that I get every two weeks or so is nothing? Well then I guess I got more than what I paid for now isn't it? completely and utterly ridiculous.

well, these are the four basic things to watch out for when introduced to a pyramid scheme. If you find yourself in a potential employment opportunity that involves any of these four things, DO NOT BUY INTO IT. It is nothing more than a scam that is used to take money from you, not give you money. If you're told that it is a business opportunity, they're right. It's an opportunity for them to do business off of you! So to you, my friend I say, be careful and Godspeed. And that, friends, is what grinds my gears. Later days!