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Old 10-25-2006, 02:50 AM
KajunKenny KajunKenny is offline
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Join Date: Oct 2006
Posts: 94
Default Re: Have I discovered a pyramid scheme? What should I do?

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This is a complete waste of your time, most likely, and I wouldn't get involved.

As for your legality question...

Multi-Level Marketing, or pyramid schemes, are not inherently illegal, and most that are operating illegally get away with it.

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This is the most assinine statement I read today. Multi-Level Marketing is a legal. Pyramid schemes are not. They are not the same thing. Comparing them is like comparing apples and oranges. In MLM you get paid a commision based on the sale of a product. A pyramid scheme usually has no product or grossly over-priced products. Which make it illegal. Saying that all MLM's are pyramid schemes is wrong and is like saying that all car salesmen are thiefs.

As someone who has worked in MLM and is known as a repuatable guy, this guy who called you is known as an MLM pimp. In other words, he doesn't care about you at all. All he cares about is filling his next level or making a sale. This is the reason I walked away from MLM. When someone doesn't describe the product to you and the wonderful things about it, that should be a definite turn off for you. Some mlm's are wonderful and actually help people, for example Herbal Life and Synergy. The products prices aren't jacked up to make the commisions crazy and the products actually have medicinal purposes.

Considering that this guys company sells well know goods, reporting them to the FBI or SEC won't do much good. Even if they contact the company, they will just report one reps "illegal activities". Actually it is illegal to promise or indicate that people will make money. IF anything, all that will happen is this one rep will be booted from the company.

It won't hurt him, however, he will just join another one and go back to his slimy tactics.
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