Amway, And other "schemes"
Tyler Nally (tnally@gisg.gi.net)
Tue, 21 Jan 1997 14:49:49 -0600
Bro. Chris saith:
> Andy, even though you say that everything is a pyramid, remember
>that there is a line that these companies eventually cross which make
>these "pyramids" illegal. Indiana government even says that pyramid
>schemes are illegal. I think that a majority of these marketing
>companies
>ARE illegal and WILL take a lot of peoples money.
Well....hmmm... I think that there's just a little confusion
at the legal definition of a pyramid (as a scam scheming thing)
and legal multi-level marketing (a.k.a. network marketing)
businesses.
The way a pyramid is identified is..... *no* product or service
is provided for money spent. A money pyramid doens't exchange
products or services and is just dependent upon person A getting
person B to join of which the profit of B's join goes back to A
and then trickles *up* to A's sponser, etc. No services, no
products. Money spent, but nothing gained (other than a promise
of a piece of the action). Usually illegal pyramids only have a
*few* people at the top making huge amounts of money with nobody
below hardly profiting from their work.
On the otherhand, a legal MLM distributes products to the associate
via a direct method (from the company) or from distributor to
distributor to distributor (on down the business links). All
products are reasonably priced (or have good or superior value in
a cost-per-usage basis per performance). The profit gained from
the associates purchase is passed *up* the tree to the distributors
that have established the network marketing businesses in some way
shape or fashion.
98% of all network marketing companies fail in the first two or
three years (from what I understand). If they make it to five
years in age, they're probably reputable. The pyramids kinda come
and go in the night. The ones with integrity hang around for the
long run....
Now if only I can find my fat-binding pill... where'd it go?
Did anybody see it around here? Maybe... it's underneath
that desk.... AHhhhhhhhhh! There is is..... the blubber is
just a melting a way.... I feel much better now. Fat-biners!
That's where it's at... ;) ;)
Bro. Tyler