Pyramid Schemes
(to see SPANISH version of this post click here)
The industry of direct sales or network marketing is very big and beautiful, unfortunately among many legitimate companies are also many more illegitimate ones, looking back at history we can learn, and make better choices about what company we belong too.
During recent years many pyramids have appeared which are very attractive because of their appearance to make money fast, many of them have closed many others are under investigation , many have closed in other countries and are under investigation in the United States. People will always have a way to justify a company been legit because of the ambition to make money fast. Keep this in mind, a company might have products and still be accused of being a pyramid scheme if the products are not been sold outside the network, take a good look at the company you are in or you are about to join because if the compensation plan only pays out for recruiting and does not compensate you well for selling it might be a pyramid scheme, if a company only promotes recruiting and never talks about its products or services it could also be a pyramid scheme. This is a summary of companies closed by the government, the sad thing is that people do not know this, and today there are many companies operating with the same characteristics of these ones already closed, so be alert and learn from these 25 closed pyramid schemes so you can make a wise and informed decision when choosing a LEGAL company:
(to see the FTC reports click on the company name)
[dropcap]1[/dropcap] SKYBIZ was closed by the government, the service they had was ecommerce where you got a page to offer third-party products on the Internet, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]2[/dropcap] FORTUNA ALLIANCE was closed by the government, the concept was to make an investment in online promotional materials and get your money back with interest on that investment, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]3[/dropcap] NATIONAL MARKETING COMPANY was closed by the government, the service they had was a shopping mall on the Internet where they could make money back on their purchases, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]4[/dropcap] SHOPPING MALL was closed by the government, the service we had was ecommerce where they offered a page to resell third-party products on the Internet, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]5[/dropcap] MEGA$NET was closed by the government, it was a scheme in which a program was promoted to make money only through recruiting of people, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]6[/dropcap] MALL VENTURES was closed by the government, the service we had was ecommerce where they offered a page to resell third-party products on the Internet, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]7[/dropcap] TREK ALLIANCE was closed by the government, they promoted water filters and traditional products, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything. Even though they had a product they could have sold it was proved it was only a disguise to recruit more people into the business and it was proved the product was never sold outside the network, their business presentation talked in its majority about recruiting and barely talked about products.
[dropcap]8[/dropcap] BIGSMART was closed by the government, the service they had was a shopping mall on the Internet where they could make money back on their purchases, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]9[/dropcap] EQUINOX INTERNATIONAL was closed by the government, was closed by the government, it was a scheme in which a program was promoted to make money only through recruiting of people, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]0[/dropcap] 2XTREME was closed by the government, they promoted nutritional products , it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything. Even though they had a product they could have sold it was proved it was only a disguise to recruit more people into the business and it was proved the product was never sold outside the network, their business presentation talked in its majority about recruiting and barely talked about products.
[dropcap]1[/dropcap][dropcap]1[/dropcap] JEWELWAY INTERNATIONAL was closed by the government, the company promoted that people only would need two people recruited to earn a significant weekly income, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]2[/dropcap] BURNLOUNGE was closed by the government , the company promoted annual virtual packages to participate in a system to make money, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]3[/dropcap] FUTURENET ONLINE was closed by the government, offered virtual packages of internet consulting that never sold outside the network was just a disguise to hide the exchange of money, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]4[/dropcap] WORLD CLASS TRAVEL was closed by the government, offering consulting packages to teach people how to open a travel agency online which were not sold outside the network, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]5[/dropcap] MENTOR NETWORK was closed by the government , it was a system in which they said it was non-profit organization helping hungry children around the world, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]6[/dropcap] DRIVERS SEAT NETWORK was closed by the government, promoted through a membership to grant credit cards to people , it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]7[/dropcap] GLOBAL ASSISTANCE NETWORK FOR CHARITIES was closed by the government , it was a project to help charities around the world, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]8[/dropcap] MY SHOPPING GINIE was closed by the government, the service they had was a shopping mall on the Internet where they could make money back on their purchases, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]1[/dropcap][dropcap]9[/dropcap] ZEEK REWARDS was closed by the government, was a virtual penny auction page, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]2[/dropcap][dropcap]0[/dropcap] FHTM was closed by the government, represented services like dish network and cellular and nutritional products, all their marketing was oriented only to recruit, the biggest problem with the company was that even though they had a product all marketing materials promoting the recruitment of people to make money, and the product was not being sold outside the network.
[dropcap]2[/dropcap][dropcap]1[/dropcap] TRADE4PROFIT was closed by the government, it promoted a system to participate in profits where people would make money on the foreign exchange, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]2[/dropcap][dropcap]2[/dropcap] WCM777 was closed by the government, it promoter an online cloud storage, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]2[/dropcap][dropcap]3[/dropcap] TELEXFREE was closed by the government, it promoted a system of international communications, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]2[/dropcap][dropcap]4[/dropcap] BANNERS BROKER was closed by the government, it promoted a system of virtual marketing, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
[dropcap]2[/dropcap][dropcap]5[/dropcap] YES INTERNATIONAL was closed by the government, it promoted a virtual training system, a kit for people to work from home which promised income to people from $ 379 a day, it was proved that a representative could only make money by recruiting others into the scheme, and that the representatives were claiming to make money without having to sell anything.
If you want to know if your company is LEGITIMATE just ask yourself one question, if you do not recruit anyone into the business, can you really make money? , if the only way to make significant money is recruiting, then you are in a pyramid scheme!, that’s the biggest sign that could see and that is what the government will look at!. A company might offer ads on the internet, cellphones, ecommerce services, discounts on travel, products or more as shown on the previous list: the truth is that if these services or products are only used by the distributors and the percentage of services or products that are being sold to people outside the network is very little then it could fall under a pyramid scheme category!. People probably criticize companies like Herbalife, Mary Kay or Tupperware, but I assure you that in these companies if you do not recruit anyone and you go out to sell the products you pay your rent, your car and your bills , that is the reason why these companies are legal; of course it is true they also sponsor people into the network but each person has the opportunity to earn money without sponsoring and the product is sold outside the network so they do not have a money exchange disguised behind a product or are a pyramid scheme. In a legal company distributors consume the product but that product is also consumed every day by many costumers whom are not distributors.
This is just a though:
• It is sad to choose a company that closes leaving lots of people losing money.
• It is very sad to see how the owners of all these companies that are being closed by the government opening more companies with the same concept and how people start again to fall into the illusion of making money without doing anything.
• It is even sadder to see people whom call themselves leaders advising people to follow them to other pyramid schemes promoting them again the: make quick money without any efforts or sales, that shows lack of integrity if you ask me!.
• In my opinion it is better to find a legal network marketing company in which to build a future, what is your opinion?
• 95% of this list of companies closed by the government, promoted some kind of service on the internet without having a real product, the few who had a real product were closed because the product was not sold outside the network and money was only made by recruiting.
If you want to see even more companies that have been closed or closed voluntarily look at this list.
If you want to grow in this industry think of others first and then you!
I hope you liked this information
Regards,
Guillermo Zuluaga
