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And can you give me some details on how they work and if they are a big scam.

2006-07-19 20:18:14 · 11 answers · asked by snowball23472 1 in Business & Finance Careers & Employment

11 answers

The ones making money are the ones referring you to their awesome opportunities!

Here is one of the many FTC advisories on 'work from home' schemes. You can see them all at http://www.ftc.gov/ftc/consumer.htm

Getting to the Bottom of Pyramid Schemes
http://www.ftc.gov/bcp/conline/features/mlm.htm

For an Akron, Ohio, man, the lure had been almost too tempting: the opportunity to join a program in which he'd make money based not only on his own sales, but also on those of the people he recruited into the program.

Employees at the company enthusiastically repeated the claims on its website. Participants, the man said he was told, "could make outrageous amounts of money for investing just $65 and getting others to do the same."

But as he learned more details of the program, his doubts mounted. What troubled him most was that he couldn't get anyone to clearly explain what product or service he'd be selling. At first, it appeared to be cable television service. Then, it was described as "some kind of power line technology" that the man said he realized "doesn't really exist."

In truth, the program had no product to offer. Its participants made money by recruiting distributors - not by selling goods or services to consumers.

"It seems that you get nothing for your money except the right to recruit other people and make money off of them when they put their money in," the man recently told the Federal Trade Commission. "And if you do not recruit anyone, you get nothing for your money."

Unfortunately, many other consumers don't see through pyramid schemes until they've invested their money and time. Enticed by promises of quick or easy profits, they eventually lose their entire investment, and some even go into debt.

Many people join pyramids in the belief that they're actually joining a multilevel marketing plan. Legitimate multilevel marketing plans offer a product or service that's sold to the public through a tiered network of distributors.

However, many multilevel marketing plans are actually pyramids. If they offer a product or service, it's only to make the program look legitimate. And if any sales are made, they're generally only to new distributors - not to the public-at-large.

"In pyramids, the emphasis is on recruitment," says FTC attorney James Kohm, "and most, if not all, of the sales are to distributors."

Participants in pyramid schemes often end up paying far more than their initial investment. A Milford, Conn., man, for example, found himself $75,000 in the hole after paying to attend sales meetings, buying more than $10,000 in products, setting up an office and running advertisements to recruit prospects.

A Denver man lured into the same pyramid scheme said that in addition to his initial $5,000 investment, he spent another $15,000 on sales products and marketing aids, and attending the company's training classes.

Not everyone in a pyramid scheme loses money. Those at the "top" of the pyramid - generally the people who started the scam - often make a lot of money from the "downline" of distributors they recruit into the program. Their testimonials often are touted in ads designed to lure new investors into the program.

"The problem with pyramids," says Kohm, "is that the vast majority of participants must lose money to pay for the rewards of a lucky few. Most people end up with nothing to show for their investments except the expensive products or other marketing materials they're pressured to buy."

If you are considering buying into a multilevel marketing plan, the FTC says to consider these tips:

Avoid any plan that includes commissions for recruiting distributors, or claims that you will make money through the continued growth of your "downline."

Beware of plans that ask new distributors to buy expensive inventory or establish a minimum monthly sales quota.

Avoid plans that claim to sell "miracle" products or promise enormous earnings. Ask the promoter to substantiate all claims.

Evaluate the product or service to determine if there's a market for it, and if it's competitively priced.

Beware of testimonials from people who claim to have earned large sums through the program. They may be "shills" paid by the program's promoters.

Resist pressure to buy in. Take your time to think over your decision and your investment. Discuss it with a friend, accountant or lawyer.

Before signing up for any program, Kohm recommends calling the Better Business Bureau and state Attorney General where you live and where the company is based to see if there's a history of complaints against the organization. While a complaint record may indicate questionable business practices, he reminds consumers that a lack of complaints doesn't necessarily mean that the program is legitimate.

But Kohm says the best way to operate when evaluating a multilevel marketing program is to be leery of any plan that makes claims that seem too good to be true.

"Even if you're considering joining a solid multilevel marketing program offering a legitimate product or service at a competitive price," he says, "you'll need to invest sweat equity as well as dollars for your investment to pay off."

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

2006-07-19 20:24:52 · answer #1 · answered by Piggiepants 7 · 1 1

2

2016-07-22 01:50:13 · answer #2 · answered by ? 3 · 0 0

I'm currently building my business as an Independent Beauty Consultant with Mary Kay and am looking for sharp, positive women to join my team. There are four reasons women become MK consultants: 1. Money, 2. Flexibility, 3. Fun, 4. Hope. The starter kit is $100 and comes with over $300 worth of product, so worst case scenario - it's the biggest compact you ever bought. Best case scenario - it could change your life. There's no pressure, no quotas, no boss. You will meet tons of great, positive girlfriends. I'm having so much fun and earning great money!

Take the Life Can Be Good quiz on my website to see if the MK opportunity is right for you:

http://www.marykay.com/adina_k/startabus...

2006-07-20 01:43:47 · answer #3 · answered by Anonymous · 0 0

There are a few legitimate work from home companies out there but they are hard to find. The only one I have found so far is Alpine Access. It doesn't work for me because I have a dog and it is mostly customer service work by phone but there were articles about it in the Denver Post and a few other places recommending it. Watch up for any work from home company that asks you for money up front, even only 5 or 10 dollars. These are scams. Any job you shouldn't have to pay for. Good luck.

2006-07-19 21:36:18 · answer #4 · answered by Anonymous · 0 0

If you're looking for some extra income you may find this interesting. What the hell, no one else is paying you to do stuff on the internet. I've made 500.00 bucks alone with this site just by doing surveys and free trials. This was all in just hours of my own free time...I hope you don't consider this to be 'spam' but I am seriously trying to help you out. Anyway, if you want to check it out for yourself and read up on it here's the site. And yes, it's totally free. After you register, check the 'Messages' tab to learn how to make the easiest money. No age requirement. Thanks for reading.

THEY PAY!!

http://www.*************/index.php?ref=58477

2006-07-19 22:05:53 · answer #5 · answered by matt i 1 · 0 0

I have been working for a great company that has been in business for a little over twenty years and have been members in good standing with the BBB ever since they opened their doors. They were also awarded the BBB's Hall of Fame award at the end of 2005. If you would like more info you can check out my web sites and click on "Get More Info"

2006-07-20 09:33:36 · answer #6 · answered by Leslee L 3 · 0 0

We have tried many things and have found a company
that has been around for 21 Years and pays you to
advertise for them. My wife and I just started and are
doing well. It is not an MLM company and no selling,
no deliveries or stocking product. My wifes aunt has
been working with this company for a little over 3
years and home schools 3 kids and makes $9,000 a
month. It is a 500 inc company and the CEO is on the
U.S. Chamber of commerce board. I can arrange a
private web cast with my wifes aunt for you and you
can decide by yourself and WE WILL help you be
successfull. It is an honest Win Win.
e-mail: cleanandsafehome@yahoo.com
Thanks,
Rich

2006-07-20 01:41:38 · answer #7 · answered by Anonymous · 0 0

With a computer at home and internet connection, you can start earning from home, without any investment. You should choose your work at home job according to your skills and time available.
If you have a good typing speed, general and legal transcription jobs from companies like Mountain West, Tigerfish and Accutran are available. You will have to apply from their websites which are listed at
http://www.pcworkathome.net/transcriptionjob.html
Medical transcription work is also available if you have completed a course.
Many companies like Manuscript Services, Associated Content, constant content pay for writing articles, poems, proofreading and copywriting. A good writer can earn more than US$30 per hour.
You have to directly apply online and the companies websites are listed at
http://www.pcworkathome.net/freelancewritingjobs.html
The simplest work at home job is answering phones for companies like WorkathomeAgent, Alpine
Access, Liveops. You will need a quiet enviroment at home without any disturbance. To apply you will have
to complete an online application form on the companies website ( a list of companies with websites is available at http://www.pcworkathome.net/customerserviceworkfromhome.html )

2006-07-19 23:03:16 · answer #8 · answered by Anonymous · 0 0

it all depends on what 'work' you are asked to do, for example you can find legitimete work off the internet, for a local company in your area, you can research any company , if you are asking about selling/ sales then look closely at companies that charge you a fee
if you are working from home , that means what it says you dont pay to go to work, they pay you.do your homework on them, check the trading standards agency, better business listings in the area that they say they come from.
best of luck

2006-07-19 20:55:22 · answer #9 · answered by lefang 5 · 0 0

BurnLounge--have your own personalized online music store. Invite family, friends or anyone to browse, sample and buy music. I have a store at http://burnlounge.com/mlbliss and I enjoy doing this!!

If you would like more info about this, just send me an email and I would be glad to help you out.

2006-07-20 01:18:50 · answer #10 · answered by tonja_myers 4 · 0 0

hi, here is a specialized webpage containing 10 methods making money online or doing business online.

http://www.adcenter.net.cn/make-money-online.html

maybe that will help you or give you some bright idea.

Best Wishes && Good Luck!

2006-07-20 00:23:43 · answer #11 · answered by love_home_business 3 · 0 0

fedest.com, questions and answers