Pyramid schemes?

Question

Does anyone have experience selling things like herbal life, Amway, that sort of thing. Not exactly a pyramid scheme, I mean there actually is a viable product involved. Some lady wants me to invest in some product and try to make money selling a particular wellness type supplement. I think it's probably good stuff, but I don't know if I'm the type who could actually succeed at making any money off it. Has anyone? I suppse it's like anything, you get out of it what you put into it. I'm just trying to gain an understanding of what it is exactly I'd have to put into to it. (besides $300)

Answer 1

Whatever you do, DON'T get involved. In past years different states have said that Amway, for instance, is just a pyramid scheme. You may actually sell products, but they are incidental to what the company really wants.

Back in the '80s (yes, a long time ago) my husband who was an engineer was friends with a doctor. The dr. convinced us to get involved with Amway. We were skeptical, but a great deal of pressure was put on us by our "sponsor" (the doctor) and his sponsor. We invested money that could have been spent better elsewhere. Every Monday we had to go to a meeting where we placed orders for products and then on Thursdays we had to go back there to pick them up to distribute to our customers. No matter how much we ordered, it was never enough. I hated going to neighbors and friends--I felt like I was begging them to buy from me to help my "business". If they could have bought something just once, they might not have minded. But I was expected to visit them on a weekly basis, getting them to buy more and different products. It wasn't just cleaning products--it also included things like hand massagers, expensive items. They dreaded seeing me and I dreaded going there. I'm a Type A personality, but even I couldn't handle it.

Then, you had to buy tapes and books to help you with your sales and presentations. The "feel good" type of material. I called them knock-offs of a Dale Carnegie course. On top of that you had to go to meetings around the state and even further was advised to make you a better rep.

Think that's bad enough? Well, wait until you're told to host an informal gathering of friends--the more the merrier--and then hit them with a recruiting pitch. If you had to go out of town, no problem--you'd hold the meeting in your hotel room and everything would be tax deductible. The friends might invest, find out it wasn't for them, and then be mad at you for the money they lost. A great way to trim Christmas gift and card giving.

Think of how you feel when a co-worker or neighbor comes over with a catalog or box of candy his child or grandkid has to sell for school. You don't really want to buy the wrapping paper, but it's for a good cause, you say, and you like the person or the kid, so you do it. That's fine, but picture it on a weekly basis.

My best advice is to go to your banker and invest in a CD or in an IRA for yourself or see an investment counselor for investing in something safe but doesn't require you to be the object of "No Soliciting" signs.

Answer 2

A pyramid is a pyramid rather or not there is an actual product. You end up paying for merchandize and working so someone else can profit. Then you bug your friends and acquaintances so they will do the same. It's nice for people who think they can get rich quick (wrong) or who are willing to work very hard to build a client base 99% dependent on service and goodwill, rather than the product. If you want to drive across town and listen for 1 hour for a 10$ sale....

Answer 3

no capitalism is not a pyramid scheme it is a economic philosophy a pyramid scheme is a fraudulent plan to keep getting more and more people to invest to show a fake profit to only the original few. capitalism is a real working model that succeeds when applied correctly. the only similarity between capitalism and a pyramid is that the base is larger than the top so as to create a truley solid structure.

Answer 4

$300???????????

I wouldn't go there. Have you checked to see if their in good standing with the BBB? Can you get your money back if it doesn't work for you? Really it's all about if you like the product, because chances are if you don't like it nobody else will.

I found a work at home company is good standing with the Better Business Bureau. I'm with Stayin Home and Lovin It! and they are partnered with a wellness company that is 21 years old. It didn't cost me that much to start and it had a risk free money back guarentee incase it didn't work for me. You can check out my website at http://healthybetterme.com/
I have a support team and mentors that help me with business ideas and they give me free tips like how to get free business cards and listings of where to advertise online, how to talk to people, and they teach me to do the same.

Just a little advice in searching for a work at home company. I was scammed so many times before finding this and I would like to let you know a few things I learned.

search.bbb.org is great to look up any company by name, address, or url. Watch out for the name change game. Most companies change their name to excape their bad reputation so they may not come up on the site because they are newly named. I wouldn't trust any company that the BBB doesn't know about. Good Luck and be careful.

Answer 5

hehe just as a side opinion to the previous long answer, it was 20 years ago theyre talking about, its not quite the push all your friends to buy stuff week after week anymore, sure you might wanna talk to them at least once about it. afterall anyone who really puts effort to a network business can make a success. so why wouldnt you help friends make money.

yes its not quick and easy, however it can be quick with enough effort and it can be easy with less. but its all possible,

im working with omegatrend who does wellness and household items as well as being linked to companies like Citibank and Iprimus, Aust. Unity and Granger Clark (Professionals) Real Estate. also OT offers advanced rewards system. extra bonuses above what you could make through business income. and AUST. OWNED. Contact me if you would like to hear about it.

Otherwise if you see potential with your friends company by all means give it a go,
A good company will answer your questions remember that one.
have a nice day.

note to those who talk about failure rates, yes many who try quit without making money. but i say try try again, and 9 out of 10 (Regular) businesses fail too.

Answer 6

Sounds like you are speaking of Network Marketing - Direct Sales or Multi-level Marketing.
These are different than pyramid schemes #1 because pyramid schemes are illegal.

I own my own Network Marketing business and I love it. EMail me if you want to know more :-)

I am unsure what your friend wants you to join, but definitely seek out all information and ask a lot of questions.

In Network marketing companies there is no "get-rich" quick - please believe that you will be working. What you put into it is what you will get out of it.
Usually you will have a starter kit fee and them a $$ amount of sales that you will need to reach per month to be eligible for commissions. Also recruiting other people will make you more money.

Answer 7

If you want to risk losing all of your friends because you have to sell to the people you know, then go for it. It's rare that people make money with these things and the people that do are like that lady who enlist others below her to sell so she gets a portion of their sales. Save your $300.

Answer 8

If it walks like a pyramid, quacks like a pyramid and takes money like a pyramid...


ITS A PYRAMID!

Just because they claim to have a product their main goal is making money off of you and the people you bring on board. Put your money into the stock market you'll be better off.

Answer 9

Don't sign up with any job that makes you recruit other people to also give $300. You won't find them. Everyone is onto the pyramid scam and you will look like yesterday's fool for even trying.

Answer 10

if you have to spend 300.00 on something your not sure of then don't do it. I've been in a few thing like that and realized I was just a stepping stone for the people above me. I didn't give up I kept searching and finely found the one for me. if your looking send me a email and i'll show you what I do. [e-mail]