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Free registration at the forum removes this block.A couple years ago, I was approached by a young man asking for directions. We started chatting and he found out I was passionate about entrepreneurship and he invited me to come sit down with him and discuss a business opportunity. We sit down and he starts explaining all these well-known companies they work with and how easy it was to start making money selling for the company. I was skeptical, but was intrigued by the business model.
I had never heard of MLM at this point so I continued to prod him for information. He gave me somewhat vague answers and would not discuss his personal financial situation (red flag), but I was still interested. After all, when you are in college barely scraping by, the promise of making $1,000 a month working a few hours a week sounds very promising. He told me the company was having a conference and normally the tickets were $185, but because he thought I had potential, he would let me use one of his extra tickets for free. I told him I needed to think about it, but he informed me I needed to make a decision immediately because we needed to leave for the venue. This high pressure decision making tactic worked. So I agreed to go.
When we arrived at the venue, I saw a sea of immigrants and low-income Americans lined up anxiously awaiting to enter the conference building. This was red flag number two. If this business opportunity was so easy and lucrative, why did nobody here appear successful? At this point, my BS alarm is sounding off and I realize this is nothing more than a "get rich quick" scheme that is used to bait low income minorities into signing up. Nevertheless, I ignored my gut and stayed.
Upon entering the conference, I was shocked by how many people showed up. The conference was held in a stadium that could accommodate 20,000 people and it looked as if there wasn't an empty seat in the house. This social proof began to ease my red flags and made me believe this could be the real deal.
It wasn't.
They had a dozen speakers come up to work the crowd up with stereotypical motivational speeches - "you can do it!", "work hard and don't give up!", "don't let people talk you out of this opportunity, you can succeed!", "you can attain freedom just like me!" The crowd would get so worked up and worship every speaker. I felt embarrassed to be there, but stayed because I wanted it to be true. I wanted making money to be as easy as having a few friends.
Before each speaker came up, they had a video play beforehand showing off their material possessions - big houses, swimming pools, happy family, nice cars etc. In one of the videos, I laughed out loud because it was showing off a 2000 BMW 3-series (the conference was in 2014). This is when I finally realized this was all a bogus pyramid scheme. If one of their top guys - a "diamond" - is driving a 2000 BMW and thinks it is worth showing off, then clearly nobody here is making any money.
The conference dragged on for what seemed an eternity. I contemplated leaving a dozen times, but felt the social pressure to stay because of how much the guy spent on my ticket.
Finally, at 12:30 AM the conference let out. We all began filing out of the building into the parking garage and the guy continued to try and sell me on joining the "company". After sitting in standstill traffic in the parking garage for another 30 minutes I had finally had enough and hopped out of the car and decided to walk back to my car.
I didn't make it home that night until 2:30 AM and needless to say, I was irritated to have my Friday night wasted by such nonsense.
I learned three valuable lessons from this experience:
1.) Be relentless about guarding your time. Money and relationships come and go, but the clock is always ticking and you can never earn back wasted hours of your life. Use it wisely. If something doesn't respect your time, cut it off or leave.
2.) Listen to your gut. If you feel something telling you that its too good to be true, it usually is. Trust yourself and don't fall prey to other peoples sales tactics.
3.) Trying to compete with 20,000 other people to sell the same products is going to compete the profit down to zero. If you can't add value, then don't waste your time - you are just chasing money. Aim to enter a business where you can make millions of dollars for your effort, not hundreds of dollars.
That right there is why I frequent this forum, and am so glad I found your book. You are the real deal Mr. DeMarco.Had I raved (lied) about MLM in TMF , I would have sold a hell of lot more books. But I have no regrets. Some express their opinion in authenticity, others tailor their opinion to what will make them the most money.
MLM Drone: “You can make a ton of cash writing down license plate numbers!"
The company I represent is building a huge database of where people go. They are paying people to write down license plate numbers where ever they go. Say you are at Wal-Mart shopping, all you have to do is write down as many plate numbers as you want with the location of where the cars were at the time. You could write down 10, 15, 20, or even a thousand plate numbers if you want! The choice is up to you. You get paid .50 cent per license plate.
Sound like something you want to do? Of course it is! All you have to do is pay a small fee to get started. As soon as you sign up you can start taking down license plate numbers immediately.
The fee is $300, and then you only have to pay a $59.99 recurring monthly fee for a personal website we will set up for you.
But here is the kicker. For every person you sign up you receive a $100 bonus! All you have to do is sign 3 people up and this fantastic opportunity pays for itself!”
ME: What if I don’t want the website?
MLM Drone: You need the website to enter the license plate numbers you collected!
ME: Can’t I just build my own? I can find free hosting!
MLM Drone: No the company has to ensure a uniform quality of information storing.
ME: How is the company going to make money off of this besides the membership fees of recruits?
MLM Drone: they are going to sell the information to companies.
At this point I know it is a Ponzi mlm. The company has no real product and the only profit model is recruiting more drones. But I ponder what the catch is? I think at .50 a plate number one could make thousands of income a month, maybe even a week.
So I embellish on my enthusiasm, and take his card with his affiliate link on it. I go home and look the company up online. I read all of the terms and conditions that the company’s website has. The tos was probably the biggest I’ve ever seen at the time.
Somewhere between the middle and the end of the tos, I see the terms on payment for plate numbers collected. There it was, plain as day. It stated that it only paid for the first 10 license plates entered to the database every month. Basically you would be paying $300 onetime + $59.99 monthly to be paid a maximum of $5 per month. Once you were suckered there was no other way to recover your funds except to sucker other people. Classic Ponzi mlm.
The guy that pitched this to me used to sell legitimate utility payment solutions (Bill Pay) to bodegas. I owned a 30% stake in a bodega at the time so I saw this man frequently.
The next time I saw him he asked why I didn’t sign up, I told him I have dyslexia and that I thought it wouldn’t be a business I could participate in. My business partner happened to be standing next to me at the time. This a**hole drone started pitching it to him. My business partner was gullible and I knew he would get hooked. He was a middle-aged gambling degenerate. What he heard .50 a plate a slot machine went off in his head and he gave the “Where do I sign up face”. I immediately broke it down in terms of reality.
I shit you not, the drone exploded on me! “Mind your F*cking business!” “You are F*cking with my business!” “What the F*ck is the matter with you?” “You don’t F*ck with a man’s livelihood!” Then the most epic thing happened. My business partner picked up the bill pay terminal (cords and all), and threw it at the drone and yelled “Get the F*ck out of my store! And don’t come back!”
True story.
I SWEAR. It's not a pyramid scheme!
"I've never sold a verve in my life and never will. Thats not what we do"
Interesting...so what exactly do you do?
"you shouldnt be so closed minded, this is like when google was starting"
this sounds more like Enron
"you have nothing to lose"
I do actually its called my time.
"were not a direct sales company?"
so how exactly does your company make money
next day she messages me again
"Heyy!! were having a huge meeting in Broward can I count you in???"
No, I have to go return some tapes
Had I raved (lied) about MLM in TMF , I would have sold a hell of lot more books. But I have no regrets. Some express their opinion in authenticity, others tailor their opinion to what will make them the most money.
Have you guys ever noticed that people in MLM's never say exactly what they are?
Like they will call it "entrepreneurship" or "sales" or "mentorship" and give you some cockamamey explanation about how it works, but they will NEVER call it multi-level marketing.
No I don't hate them, like I don't hate anyone. I just find them incredibly cringworthy and would rather they stay 100 feet away from me at all times.
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