The Business Models Drive

the Behavior in the Field

Part 2

For those of you who are looking for the next big “GET RICH QUICK SCAM,” then you will also want to get this information so you can choose the best scam!!  That way you will know when to jump to the next illegal deal before the federal government comes along and catches you and puts you in prison!! 

Listen; let me get something straight here.  There are no illegal network marketing companies.  However, there are illegal schemes out there, illegal entities that will mask themselves as legitimate network marketing companies.  But either way, both of their business models will always drive the behavior in the field. 

All the commissions paid out within an illegal company come from the money paid by an uneducated person who pays to join the illegal scam.  There is never a real tangible product.  So when you are making an attempt to figure out if you have a legal network marketing company, just ask yourself a question.  Do you have a real tangible product?  It’s that simple. 

You need to ask yourself these questions.  Would you have spent the money if there was not a business opportunity attached to it?  If you have found a situation where people are paying a lot of money when there is no tangible product, could you find this or anything similar on the internet?  Let’s use an educational program as an example.  Can you find this information for free? 

This is how it works.  Some company comes along and puts all of the information together and wants to sell this to you for $1299.99.  You send the money by money order to your upline.  Your upline keeps $1000.00 and sends $299.99 to the company.  If you are in this type of situation, YOU ARE IN AN ILLEGAL SCAM.  GET OUT NOW!!  You could go to a federal prison if you attempt to duplicate this. 

So knowing this information, you confront your upline and they tell you all of their pretty little stories (lies).  They tell you that there is definitely a product there.  But there is not.  Or if there is a tangible product, why would the upline keep $1000.00 and give the company only $299.99?!?  Because they are so cool for being the middle man that they charge you $1000.00 for their service?

The product or service or program costs only $299.99.  That is a markup from what it is worth or what time, energy, or money it took to create it, produce it, package it, market it, sell it, and get that product to you.  That is called business.  If you don’t believe this, ask your CPA.  Company overhead drives the cost of the entity (good or service) that you purchase and consequently the price goes up.  We are used to that.  But if there is no tangible product, or if your upline will not allow you to send your money to the company directly, you are being cheated, lied to and bamboozled. 

Another example of this is a type of compensation plan where the company has a $5000.00 to $6000.00 seminar behind somewhere around $1200.00 to $1500.00 on the front end.  These seminars are NOT Tony Robbins quality.  In fact they set people up for an offshore seminar at $12,000.00 to $15,000.00 for “insider secrets” that can not be told in the U.S. 

The reason the companies go to offshore locations for their seminars is so they can lie to people with freedom.  Material for most of these seminars and even the actual programs can be found in public libraries or on the internet FOR FREE.  A lot of this information that people spend $1200.00 +- can be found on Amizon.com for a fraction of the cost.

This type of program is designed for strong, strong, STRONG closers (and scam artists).  Almost no beginners can sell a package at this rate.  And the newbie loses their money.  People are actually buying this crap.  Believing and purchasing.  This is unbelievable to me.  They are actually pulling out their pocketbooks, emptying their checking and savings accounts and, in some cases, actually spending their children’s college funds.   

These companies get shut down eventually.  Why?  The answer is very simple.  When people realize they are being scammed, they want their money back.  The sales person got $1000.00, the company got $299.99.  The upline will not give up the money.  So the person goes to the company.  HA!  Fat chance.  They the company redirects the person back to the sales person for the refund.  There was no agreement for a money back guarantee.  So the buyer loses out.

As the number of people who want money back from this type of program increases, so do the number of complaints to Attorney General’s Department of the United States.  They finally whack the company and that is the end of it.  The current leader in profit for this type of compensation plan was last found hiding out in Panama, awaiting extradition proceedings from even that country.

Unfortunately, our laws and our government doesn’t move fast enough.  The good part is most of them say the plan or deal is not network marketing (although legally they are).  So the industry does not take a lot of heat.

Kristopher Curry

Mentoring For Free

“Be a mentor with a servant’s heart.”