The Three Types of People Looking Into MLM: What You Should REALLY Know

Business Sign X
(Photo credits: www.roadtrafficsigns.com)

Richard Bliss Brooke is one of the pioneers in network marketing, and still heads one of the smaller (but long-living) companies today (called OxyFresh). He recently penned an essay: "Failure Is Your Option (In Network Marketing or Any Part of Your Life)"

He brought up some very important points, such as the three types of people who are looking into MLM. However, I have a little problem with his failure mode analysis, where he basically said that if you fail in MLM, it's probably because it's your fault, that you didn't give it all you got.

There seem to be three types of people who are looking to join MLM

1) "Wholesale Customers"
2) Part-timers
3) Full-timers

Let us discuss them each in turn.

BREAKING NEWS: Zeek Receiver says eWallet Companies maybe holding MORE money than originally thought

Journal of Forensic Accounting (Photo credit: Wikipedia)

As reported by PatrickPretty.com, a court filing by Zeek Receiver Ken Bell with the Federal Court shows that there's reasons to believe that the eWallet companies Payza and SolidTrustPay, both used by Zeek to pay affiliates in order to bypass US laws (both are located in Canada) may have MORE Zeek related assets than previously thought.

According to Bell, forensic accounting (i.e. tracing the money trail) had lead him to believe that both eWallet companies still hold "receivership assets" (i.e. money that belongs or should belong to Zeek). And he will continue to investigate and seize those funds.

The filing also indicated that Bell is ready to sue those eWallet providers for damages by allowing affiliates to withdraw ill-gotten illegal profits from Zeek even after the receivership had notified them to freeze all assets related to Zeek Rewards ponzi.

BREAKING NEWS: "Universal Private Banking", not a bank, got flagged as PHISHING SCAM by McAfee

Image via CrunchBase

(Reported via PatrickPretty.com) Universal Private Banking, a unregistered business out of a P.O. Box in Massachusetts  was flagged as "phishing scam" by McAfee Siteadvisor, a free service offered by McAfee, one of the leaders in computer security.

Universal Private Banking website domain shows address of a UPS store (which allows their mailboxes to be referred to as "suites"). It is not registered as a business in the commonwealth of Massachusetts, according to report on BehindMLM. It claims to offer banking services, but there is no record of it having any banking license in any state in the US.

BREAKING NEWS: GoFunRewards Commits Seppuku, spirit returns to Hong Kong

The Chinese characters for "Hong Kong". (Photo credit: Wikipedia)

As reported by BehindMLM and "The MLM Advocate" Troy Dooly, GoFun Rewards, a "business" with business model that heavily resembles Zeek Rewards ponzi, is closing its doors in the US and retreating to Hong Kong.

GoFun Places, i.e. GoFun Rewards was started by eAdGear, a company out of Hong Kong, that saw Zeek Rewards as its competitor where people can put in money and enjoy abnormally high returns, yet denies it is any sort of investment. It had previously sued affiliates in the US when those affiliates attempted to switch to Zeek Rewards and made websites comparing the two declaring Zeek Rewards superior in every way though highly similar.

OLD NEWS: TVI Express slapped in Philippines as Possible Securities Fraud

According to ABS-CBN news, TVI Express Holidays Philippines is a potential pyramid scheme, and people should avoided it, as part of Filipino Securities Exchange Commission official warning.

SEC warns of new pyramiding scams

by Alvin Elchico, ABS-CBN News

Posted at 03/12/2013 5:37 PM | Updated as of 03/13/2013 9:15 AM

MANILA, Philippines - Fresh from the disastrous results of the Aman Futures scam, the Securities and Exchange Commission (SEC) has again issued an advisory to consumers in Davao and Surigao of two separate potential investment fraud.
SEC chairperson Teresita Herbosa identified these two potential scams as Connectacons Inc. and TVI Express Holidays Phils.
The target company in Tandag City, Surigao del Sur has reportedly been encouraging teachers to invest P16,800 with a promise to "double the money" within 6 months and to get $10,000 for another 6 months.
According to the SEC advisory, those who invested have not received the promised amount and even return of their investment despite repeated demands.

Bad Argument: Poisoning the Well

Poisoning the well tactic is often used by scammers on the victims to "pre-condition" them to ignore any objections from critics and "people with negativity". Unfortunately, many MLM "coaches" adopted this same strategy as motivational speak mumbo-jumbo to preclude any questions. It is a part of overall strategy of "avoiding negativity".

This is best illustrated by citing an actual article:

My next approach was to question the fundamental premise of multilevel marketing, the sketchy business of selling not a product, but a dream. The conversation was making Mark uncomfortable. I saw a flash of panic in his eyes before they glazed over. Then he said this: "They told us there'd be ripe apples who are ready--who see it. They told us there'd be green apples that weren't ripe yet. And they told us there'd be rotten apples. ... You're a rotten apple," he said. There was an uncomfortable silence. I smiled thinly and suggested we both go home.

http://www.metroactive.com/papers/metro/10.03.96/cover/multilevel-9640.html 

Note the part where "Mark" replied "They told us there'd be rotten apples... You're a rotten apple."

Those who sold Mark the MLM dream already told him about "rotten apples" that won't "get it" (understand the appeal of MLM).  They have succeeded in "poisoning the well" (of Mark) that Mark now is predisposed to not believe anything MLM critics said, even if it's reasonable, logical, and supported by evidence.

God and Ponzi: WTOL special report on local church leader's role in Profitable Sunrise pyramid scheme

WTOL (Photo credit: Wikipedia)

WTOL has a special report on Profitable Sunrise pyramid scheme, and how a church leader in Toledo, Ohio has promoted it heavily within the local community, leading to financial ruin for many.

The program profiled Nanci Jo Fraser and her NJF Global group, AND her church "FocusUp Ministries", and her followers who heavily promoted the Profitable Sunrise ponzi to the locals, telling them they are doing God's work by giving her money, and can earn 2.7% PER DAY with their money (for reference, Bernie Madoff only offered about 10% PER YEAR). What really happened is any money that came in was used to pay off a network of recruiters 3 levels deep and the rest disappeared into somewhere in Europe to persons unknown.

More Reload Scams Targeting Ponzi Victims

English: WFMY-TV microphone on display at the North Carolina Sports Hall of Fame in Raleigh, NC (Photo credit: Wikipedia)

WFMY TV have profiled a scam that is specifically targeting Zeek Ponzi victims.

By using an "Zeek Rewards is Coming Back" name on Blogger, it claimed it has a fast track into the recovery process, and ask victims to send their bank into to some address somewhere.

http://www.digtriad.com/news/local/story.aspx?storyid=281791

Other blogs have yet other scams claiming to recover funds lost in the Profitable Sunrise international pyramid scheme. Just send money to some overseas processor.

How an Internet Scam Works: Spam, Tease, Seize, and Squeeze.

SPAM! [don't buy] (Photo credit: dѧvid)

Wonkette had put out a wonder piece on how an Internet Scam Works through the four stages: spam, tease, seize, and squeeze. But there's an additional wrinkle... this one involved God, pastor, and church.

The spam part is simple. Some random unsolicited spam that claims some random quote from the Christian Bible about transfer of wealth, and how this unnamed pastor somewhere in Florida got into this "business" and in weeks is blessed by success and got loads of cash.

The email then sends you to a "capture page", i.e. a webpage where it lays out a short scenario, shows you a teaser video, and gets you to put in your email address "for more information". Some will also have you listen to a "recorded testimony" over the phone.