Scam Tactics: How Do Scammers Identify What You Need?

How does a conman pick up on what does the victim needs, and thus, tailor the scam to fit?  There are five different techniques. If you are aware of these techniques, then you can watch out for when they are used on you.  Let MLMSkeptic explain the five techniques.

The techniques are:

1) Pre-screening

2) Probing questions

3) The tease

4) The Please

5) Trial Close / Seize


Pre-Screening

Your identity is known on the internet. Somebody out there has a profile on you, more than one if you have used multiple names and/or multiple identities. Credit agencies definitely have one on you (and there are several of them). If you're a professional you have professional profiles somewhere. And those can be accessed. That's just your public profile.

Then there's your "hidden profile". Your behavior online is part of your profile. If you give out your name and email address at capture pages that goes into a profile somewhere, and shady businesses will share that info (even if they promise never to do so) with other shady businesses and that's a part of your profile.

If you ever applied for a loan you will get solicitations for loan offers for MONTHS. They shared your info. And they're legit. Imagine what the ILLEGITIMATE scammers and conman will do...

If you ever asked for more info on suspicious "make money fast" type schemes, or clicked on teaser videos that says "sign up for my ____ for more info" and entered your email for "more info", your name is now on a "sucker list" to be marketed with more **** in a similar genre, because you have shown a preference for such topics. 

Scammers (and legitimate salespeople) pay $$$ to buy leads that may be interested in such things, and the lead list is pre-screened for people who are at least interested to whatever s/he's trying to sell. As the joke goes, you don't sell ice to Eskimos or sand to Arabs. By pre-screening the prospects, conversion is much easier.

The prospect generally doesn't see this step, as it's done long before the scammer meets the prospect. To counter this, simply don't be surprised when you got invited / solicited for sales pitch which seems to be exactly what you want. People already "know" you.

Probing Questions

Probing questions are pretty easy... Ask them what *do* they want. Due to pre-screening, you already have a decent idea on WHAT they want. However, there can be a little distance between what they say they want, vs. what they will settle for now. And asking questions will clarify that. 

If the presentation is pretty much a monologue, then the salesperson will be asking rhetorical questions, like "Are you looking for financial security in an insecure world?" "Are you looking toward better health?" then answer them him- or herself, "the answer is ________!"    And scammer will watch the reactions and see if s/he needs to change the speech. 

The salesperson will almost always frame the question so the answer is "yes". By answering things in the affirmative, prospect will have influenced him- or herself to answer "yes" later. 

The prospect should remain neutral for this part, not only to deny the presenter any clues on how to proceed, but to remain neutral mentally rather than "psyched up", in order to evaluate facts rather than emotions.

The Tease

The tease require a bit of mystery, and a commitment from the prospect to find out more. A "capture page" where the prospect watch a video and enter their info is such a tease if there's no details. The idea is to pique your interest, without telling you much. 

Tease works on relatively naive people who are not used to the various sales techniques, but not on veterans. Veterans will simply demand the information they need to make the decision, and will not waste time waiting for your "big reveal". 

The prospect should again, remain neutral when confronted with the tease. You are after facts, not teases with no solid info.

USFIA Update: Who are they trying to fool with these "screenshots"?

A few days ago, the "official" Facebook page of Gemcoin / USFIA posted this:

Facebook post by Gemcoin / USFIA official page

Can you see the problems? No?

The "Blockchain Wallet" is the first problem.  Blockchain never heard of Germcoin.

Second one requires a bit closer look.... Look carefully:

Getting the details of one of those pictures... See the problem yet? 

Do you see the problem yet? No? Let's go a little closer:

The title says: [unreadable Chinese] Gemcoin Wallet.pdf -- Adobe Reader

That's right, you're looking at a photo of PDF being displayed on a computer screen. In fact, if you open Adobe Reader XI now, you should see the SAME toolbar. Here, I'll even show you.

Screenshot of Adobe Reader toolbar / menu bar

They're showing off a PDF file and claiming it "proves" that their cryptocurrency blockchains are working?!?!?!

How stupid do they think people really are?

Related articles

• USFIA Update: What was USFIA doing before Gemcoin? Exactly the same thing... selling promises of amber
• USFIA Update: Turns out all both the Chinese name and the English name may have been stolen
• Update on WCM777: the more we dig, the more weird stuff we find
• Scam Tactics: Evolution of a Scam, from Proto-Share to Investment Fund to Cryptocurrency

Scam Tactic: Gaslighting (indignant denial)

English: This bright gas lamp has three mantles in UK
 (Photo credit: Wikipedia)

Ever heard of "gaslighting"?

From Wikipedia: Gas-lighting (or gaslighting) is a form of mental abuse in which information is twisted or spun, selectively omitted to favor the abuser, or false information is presented with the intent of making victims doubt their own memory, perception, and sanity.

Scammers LOVE gaslighting, because they need to destroy victim's sense of reality, so they can substitute their own alternate reality, where selling is buying, black is white, and profit is loss.

Scammers deny facts that they don't want to explain (i.e. inconvenient truth). They will insist that the victims remembered it wrong. It wasn't like that. If victim is already weak-willed, victim will question his or her own reality... Did it happened the way I remembered it, or did I just imagined it? Was the way I learned selling really what selling means?

Scam victims who complained are dismissed as "whiners" and shouted down by shills, denigrated as "unbelievers" who "do not share the vision". Often, there are outright threats, from threats to cancel membership (triggering FOMO, fear of missing out), to verbal abuse to threats of physical abuse to legal threats (Cease and Desist orders) to even death threats. The victims were ostracized and put down emotionally, manipulated into believing it was their own fault for failing, that the system worked for everybody else, thus it must be the victim's own fault. Any one who failed is automatically weak, unbelieving, and sometimes, traitors who want to blame their own failings on the organization, and so on.

Pyramid schemes are very good at that. If one wins, the system gets credit as "the system works!" Individuals get no recognition unless some are needed to be shown in award ceremonies, but only to entice people who are on the fence. If one does NOT win one is blamed for the failings, as in "You must have screwed up! It worked for everybody else!"

USFIA Update: Turns out both the Chinese name and the English name may have been stolen

Today, MLMSkeptic takes a deep dive into the Interwebs, to dig up who is the REAL "American Mining" (it's NOT USFIA), by looking at various corporate listings as well as news from Asia to prove that the name "American Mining" was stolen by USFIA.

USFIA which supposedly stands for US Fine Investment Arts, was known as 美洲礦業／美洲矿业 in Chinese, which translates to American Mining. Chinese Commercial Yellow Pages (CCYP) shows that they are the same:

Screen cap of Google Search Results for 美洲礦業, confirms that USFIA
is 美洲礦業, which translates to American Mining

Furthermore, when the scam was active in China, it used the same logo and Chinese name. This is primary rep Ho Peng at such a seminar in Macao. Ho Peng was arrested in China in June 2014 along with 21 other promoters of USFIA 美洲矿业 in China.

Ho Peng, USFIA top rep in China, at a promo event in Macao April 2014.
Ho was arrested in June 2014 for his role in 美洲矿业 scam. 

And just to confirm, this always has been USFIA's logo. This is the current rendition of the logo:

"USFIA Inc. US Fine Investment Arts"

The address matches. This is indeed the USFIA in question. And this is a US Corporation registered in California by Steve Chen.

Profile for USFIA in California, which used Chinese name 美洲矿业
which means American Mining, even though USFIA
supposedly stands for "US Fine Investment Arts"

However, we do have a problem as there is already a 美洲礦業 in Shenzhen, China. As this is in China, the proper way to write it is 美洲矿业 (simplified Chinese).

And yes, they have a logo. This was from a talent wanted ad they posted earlier:

America Mine Holding Talent Wanted ad in China, short profile on company in Shenzhen, China

And this one is easy to verify via third party sources. Search for AA Mine Mexico brought up an official Mexican government listing of mining projects in Mexico with Foreign Capital:

Official Mexican Government website confirming AA Mine Holding is Chinese owned

Okay, sounds legitimate enough. Is there yet OTHER sources to prove this is the "real" 美洲矿业 , i.e America Mine Holding?

Absolutely!

USFIA Update: Gemcoin ATMs (probably not) and warning in Spain about it being unlicensed investment

NOTE: Previous coverage on USFIA can be found here

MLMSkeptic has a special disdain for someone scamming their own kind in order to get ahead, which is pretty much every scammer out there, when the truth is often in plain view, albeit the view may have been distracted.

A certain Gemcoin promoter online claimed that Gemcoin ATMs , THOUSANDS of them, will soon be distributed around the world, so people can get cash through their Gemcoin account. As an example, they showed two ATMs allegedly with Gemcoin listed next to the typical ATM logos like VISA / MASTERCARD / AMEX and so on.

Screencap'ed from investgemcoin.com

As you can see, that's "Gemcoin" 2nd from the right on the top row, and here's a guy that looks like he's getting money from it.

So why is there a "Gemcoin" logo's bottom showing just above the ATMs?

Turns out, these two are probably the ONLY ATMs that display the Gemcoin logo... because they are installed at Gemcoin HQ, i.e. UCCA / USFIA / AFG / whatchamacallit in Arcadia. Don't believe me? Here's a different angle of the same ATMs, from a different Gemcoin promoter:

Then consider this shot from the FRONT of the lobby... at the reception desk

One must conclude that the two confirmed-to-exist (whether you can actually convert Gemcoins to cash is a different matter) alleged "Gemcoin" ATM are located in the main lobby of USFIA/AFG, as this is the SAME paneling used in both pictures.  Albeit it's not in public view, but around the back.

Frankly, other than banks, the ONLY other locations with ATMs, esp. these free-standing kinds, are local convenience stores. You know, something like this:

USFIA Update: Who is this security guard and was he also identified as gemstone appraiser?

Previously, we've identified the USFIA shindig in Arcadia, where Steve Chen threw a party for "USFIA Club Grand Opening", where he threw a party, then started up a motorcade  to visit his closed Quail Lodge golf course and promised this will be developed into a huge profitable enterprise. This was back on May 29, 2015. John Wuo was present.

Also present was this security guard, in no less than three photos.

Security guard, photo 1 of 3, hiding in background to left

Security guard photo 2, posing with fellow guards and motorcade control, far right

Security guard photo 3 of 3, posing with fans with thumbs up sign

Do we agree that these three shows the photo of the same guy? Taller than most Chinese, stocky.

Scam Absurdities: Stupid Meme passed on by MAPS idiots

Recently I came across this really really really stupid meme posted by a "Lloyd Dotson"

There are (at least) 3 things that were VERY VERY wrong with this meme. Did you spot them yet?

When you think you did, continue.

The Worst Kind of Scammer: False Claim of Government License by Options Rider

Ever heard of "Options Rider"? No? Me Neither, that is, until they started announcing absolutely bull****. But let's start from the beginning.

Back on April 16th, a review of Options Rider appeared on BehindMLM. The company purports to be offering option trading out of New Zealand, but the address is that of a Regus virtual office. And no owners were identified on their website. Shady enough? Searching the interwebs revealed two names: Bob Roberts and Thomas Carter.

Bob Roberts appears to be associated with another virtual entity called BancdeOptions, supposedly HQ'ed in Hong Kong, but it's another virtual office.

Here's the really hilarious part though... At the time of BehindMLM's review (early April 2015) Options Rider showed a license number:  FSP license number 207/13

Sometime after that review, they changed it to FSP license number FSP109805.

But I was able to locate a version of the Options Rider contract, on "WV Trading" that PREDATES the both of them that says: "CIF License number 207/13"

The Company is authorized and regulated by the New Zealand Securities and Exchange Commission to offer certain Investment and Ancillary Services and Activities under the Provision of Investment Services, the Exercise of Investment Activities, the Operation of Regulated Markets and Other Related Matters Law of 2007, Law 144(I)/2007, as subsequently amended or replaced from time to time (“the Law”), with CIF license number 207/13.

The problem is New Zealand does NOT have a Securities and Exchange Commission. New Zealand investments is regulated by Financial Markets Authority. And the cited laws do NOT exist in New Zealand. And obviously, "CIF" number is meaningless in New Zealand. In NZ financial entities are licensed as FSP (Financial Service Providers), but its relevance will become clearer. There is no "Options - anything" licensed as FSP in New Zealand. Search the database yourself.

In fact, you should notice that by typing in a few test cases that NONE of the FSP number goes above 5 digits. Thus, the 6-digit number given by Options Rider is BOGUS.

By now it should be clear that this company is a scam, citing license by a nonexistent government agency for legitimacy. But wait, there's even more hilarity in the lies of Options Rider!

More Idiots Who Don't Check the Information They Pass On: UFUN Edition

UFUN is a multi-national alleged ponzi scheme that has ties in Thailand, Malaysia, China, and other countries. In the past three weeks Royal Thai Police have swept up a lot of the heads of the company, but the company's real headquarters is in Malaysia, and at least three of the heads escape through Malaysia. One's remaining in the limelight, supposedly celebrating some signing documents with some developement project, while the other other two have fled Malaysia as well. A retired Thai General that's involved has escaped to the US.

Its primary American cheerleader appears to be a guy by the name of Rodney Burton, who gave himself the title "Global Ambassador", and recently posted something like this on Facebook:

The problem is the link was in Thai, and he clearly does not read Thai, as a different link describing the same announcement reads VERY VERY differently. As you can see, same three guys, just a very different angle. Follow me so far? Here's the link:  

http://www.nationmultimedia.com/national/UFUN-case-a-transnational-crime-police-30259107.html

And a quote from the article:

Suwira quoted prosecutors as saying that the UFUN case would be regarded as a transnational crime if police were able to present to the OAG clear evidence that the company had been involved in similar criminal offences outside the country as well.  

If the attorney-general deems it a transnational crime, the punishment will be harsher than under normal law. The attorney-general will be the person setting the interrogation method and there will be more complicated steps in the probe, he explained. 

For now, police will gather more documents and interview those claiming damages to confirm whether there were criminal offences outside Thailand, Suwira said, urging affected persons to file complaints with police during the May 1-5 holiday period.

So basically, this Mr. "GlobalAmbassador" Burton got it completely wrong. There is plenty of evidence of UFUN's guilt in Thailand. There's not quite enough evidence of victims OUTSIDE Thailand for Thai Office of Attorney General (OAG) to elevate the case to "Transnational Crime" and invoke ASEAN and Interpol international assistance to end this scheme once and for all.

BIG SOLID CASE AGAINST UFUN
PLENTY OF EVIDENCE IN THAILAND

Which proves that if you don't read or understand Thai, you should not pretend to understand what the video actually said. Liar, liar, hair on fire...

Right now there's no mention of how will Thai Police gather victim reports from outside of Thailand.

I personally would suggest that if you are a victim of UFUN outside of Thailand, and have a local Thai Embassy, you should write up your report and ask your local Thai Embassy to turn it over to Thai Police. I can't think of any other way at the moment. If there is an address or such where you can send such reports published, I will update the method here. 

OLD NEWS: World Ventures busted in China, Taiwan, and Malaysia back in 2014

According to Chinese news (Hunan TV) World Ventures, i.e. "WV", was investigated by Changsa Public Security back in October 2014. Other sources indicate that World Ventures was also met with legal challenges in Taiwan, and Malaysia, where it was accused of operating illegally.

Ministry of Labor and Commerce Enforcement Agents along with Public Security raided a facility that had a huge sign with the WV Logo and slogan outside, and asked the two present, a male and female, to show the business registration papers for WV. The two refused, claiming they had nothing to do with WV, but is instead a university career training workshop, and thus is not licensed and not for profit.

When confronted with the sign outside, the male "supervisor" deny any and all knowledge about the banner, claimed they had nothing to do with the banner. During the search, a business card was discovered with the supervisor's name on it, and even had the WV logo, but the man still refused to admit he runs a local WV branch, but instead tried to explain "I merely suggested some trip ideas to my friends and relatives."  PS personnel then found the documents saved on the company computer and printed them out, which contains WV promotional material and comp plan. When confronted, the man continue to deny, claiming it was left by visitors. He was then confronted that his own printer printed those off his own computer. Then he had nothing else to say.

Labor and Commerce enforcement bureau spokesperson explained that WV is suspected of illegal pyramid selling, but most of the websites used to promote such are located outside of China, and thus making investigation and enforcement difficult.

When the Lies Don't Even Make Sense: "Bluechip Business Bonds" HYIP

Another HYIP (read: small online Ponzi scheme) that hit the scenes recently is "Bluechip Business Bonds", which obviously has nothing to do with business or bonds. Instead, it's promising up to 4% DAILY interest. Yes, daily. It can't be real, obviously.

But when it writes fiction... well...

Let's take an example, under people: it showed a "Peter Boskin", who allegedly received a MBA from Bowdoin College.

First of all, that is a photo of Pyotr Volkov, head of Department of Stock Exchange Operations of Gazprom, the Russian energy company. The faker trimmed the photo and mirrored it to throw off the image search. Here's the original photo for comparison.

Furthermore, Bowdoin College doesn't offer MBA program. It's a liberal arts college.

And why does it say "Reed served in the Peace Corps"? Who's Reed? That turns out to be "Reed Hastings, co-founder of Netflix. Here's Crunchbase data on Mr. Hastings:

Exact same wording, except the perp added a "M" in front of BA to embellish it. Tsk tsk tsk. Naughty, naughty, naughty.

Ah, wait, there's more.

Is a Scam Targeting Veterans "to end poverty" citing a FAKE JAG lawyer?

A potential scam called SVM Global is soliciting participants that promises "100K to 1M in 90 days"

SVM Global promises 100K to 1 Million in 90 days, WTF?!

So what the heck is this thing? It's ran by a "Sheila V. Tabarsi". SVM, of course.

This is from her Pinterest Profile:

Sheila Tabarsi, via Pinterest profile

And this is from her Google+ profile:

Sheila Tabarsi, via Google+ profile

Let us be absolutely clear... There are NO LEGITIMATE PROGRAMS that can turn 100K into 1M in a year, much less 90 days. This can't be legal, period. Money doesn't grow on trees, or multiply like bread and fish in the hands of Jesus.

BehindMLM came to the same conclusion: it is a ponzi scheme. And apparently grandmas are pawning jewelry, and single parent with 3 kids and trouble making rent are still fronting up $900 to join. WTF?!?!

But that's not the really WTF part... that would be that she may be referring to a FAKE lawyer.

Can You Forgive Your Pastor Defrauding You Because He Said it's "Not Intentional"?

Imagine this scenario:

Your pastor is a man you trusted because you trusted people who are men of God. You've seen him save people from alcoholism. You know him to be a moral man that came from humble origins.

So when your pastor claimed that he's started a business where he needed money to make money, and promised a hefty return, you did not hesitate. Your pastor claimed the money will be invested in foreign currency, or perhaps commodities...

But after a few months, perhaps a year or so of paying out... There is no more payment. That's when the pastor admitted he wasted all of your money. And money of hundreds of other churchgoers and his other associates.

But he didn't mean it. It was "not intentional". He lost money too.

Can you forgive him? When your life savings are gone? When you will probably lose your house and declare bankruptcy?

For hundreds of people around the country, this is not imagination. It is absolutely real.

Welcome to the world of religious fraud.  We got two sob stories for you.

BREAKING NEWS: SEC shuts down eAdGear (GoFunPlaces / GoFunRewards)

According to latest article on BehindMLM, eAdGear, the folks behind GoFunPlaces / GoFunRewwards are done... shut by SEC, with help of FBI, and authorities in Hong Kong, China, Canada, and United Kingdom.

This would mark the FOURTH Ponzi shut by SEC in this year alone (WCM, Zhunrize, and TelexFree)

See http://behindmlm.com/companies/sec-shuts-down-eadgear-gofunplaces-gofunrewards/

BREAKING NEWS: Zhunrize closed as $100 million ponzi/pyramid scheme by SEC

Breaking news: Zhunrize, an alleged e-commerce platform that was pitched as "Internet store you can own" for $3000 a pop has been closed by SEC as a pyramid scheme where joiners are encouraged to recruit more joiners and get paid if they do so.

SEC has obtained a full Federal money freeze order from court in Georgia and have frozen all assets belonging to Zhunrize, and cited stats of up to 70000 victims who handed over 105 million dollars.

http://www.courthousenews.com/2014/09/23/71668.htm

Behind MLM had previously done a review of Zhunrize where it concluded this can only be a ponzi scheme. I have provided additional comment that this is just "Skybiz" pyramid scheme reinvented for 21st century... using the same lure: ecommerce.

http://behindmlm.com/companies/zhunrize-review-a-3000-e-commerce-platform

This marks the THIRD major Ponzi scheme shut down in 2014 ... TelexFree, WCM777, AND now Zhunrize.

Due Diligence: Does the Business Model Make Sense To You? Are you sure?

As the MLM Skeptic, one comes across all sorts of alleged businesses, and many of them makes sense as a business, but not so much as an affiliate/distributor. Some makes sense as an affiliate, but makes no sense as a business. Obviously, a real business have to make sense to both the business itself and to the affiliates/distributors. 

In a typical retail business, the business model is very simple: buy low, sell high, sell much. There is no separate model for the participants, as participant is the owner of the business. 

In a direct sale business, we have to examine both layers, and they should coincide. Business buy the inventory at low prices, then sends out the direct sales people to sell them at higher prices. The business model for the participants, the direct sales force, are the same: buy low, sell high, sell much. 

However, with newer technologies a variety of schemes have appeared to entice participants to put in money or sign up in order to reap benefits...  Yet its business model makes no sense upon closer examination. 

Remember, for a business to succeed, both its own business model and the business model of its participants must both be sensible AND profitable. 

Today, we shall examine one business whose business model makes no f***ing sense upon closer examination. 

Or to put it another way: If it's so profitable why are they paying you?

Scam Alert: Bitcoin as disguise for Ponzi scheme

EDITOR'S NOTE: I counted the difficulty wrong. It's FAR MORE HOPELESS than I ever imagined. See revision throughout the last half of the article.

In the past 6 or so months there has been a plethora of suspect Ponzi schemes that involves Bitcoin as its disguise. Some of them are basically pure HYIPs (BitClub Network, Bitcoin Zones), while others are existing schemes that decided to incorporate Bitcoin as part of its various schemes (GetEasy, Paymony) Here's description from one of them:

XXXXXXX costs $99 for your membership. 

You can then buy shares in their three mining pools for $500; $1,000; and $2,000 per share respectively. 

Every share you purchase will pay you daily payouts for 1,000 days.

This, gentleman, is an unregistered security, as defined by US law known as the Howey Test.

A security in the US is defined as:

1. investment of money due to
2. an expectation of profits arising from
3. a common enterprise
4. which depends solely on the efforts of a promoter or third party

You "buy shares", you expect "payouts", you buy into "pool" which is obviously a "common enterprise", and payout solely depends on some unknown "mining pool".

This is OBVIOUSLY an investment security, and it's ILLEGAL to offer in the US of A.

"Now wait a minute", I hear you ask... "Are you telling me Bitcoin mining is illegal?"

NO! You see, in a *typical* bitcoin mining operation, you contribute CPU POWER ONLY (think of it as labor or material), not actual money. For example, this is how you join the BitMinter pool:

1. Register
2.  start bitminter clientBitminter client: Hit the start button to start Bitminter client. You get bitcoins for the work it does. Works on Windows, Linux and Mac. Requires updated Java. Other clients: bfgminer, cgminer, etc. Connect to the pool at stratum+tcp://mint.bitminter.com:3333. As user name put your Bitminter user name, an underscore, then a worker name, e.g. DrHaribo_asic3. In case you have firewall issues, port 443 and 5050 (Stratum) are also available. There is no password check, any password is accepted.
3. Get a wallet to transfer your coins to. Make sure you secure your wallet.

Other actual MINING pools are the same: you join by contributing CPU / processing power, NOT actual money.

In fact, you can join one now, using your regular desktop PC. It won't do much compared to dedicated hardware that costs THOUSANDS of dollars, but you can do it for FREE (and your payout will be negligible).

Ah, but you say, but *maybe* they really are buying the hardware to do the mining with the money you gave them?

Then it'd be a stupid investment, and I'll explain to you why by crunching some numbers.

The Woo Files: MLM Viagra Coffee (no, I'm not kidding, and it's illegal)

There are all sorts of "fortified" coffee, containing all sorts of stuff that's allegedly good for you, from Asian mushrooms (Lingzhi) to various uber(woo) fruits like Acai berries, goji berries, to various forms of vitamins. So it's really no surprise when someone made coffee with allegedly "all natural herbs" to raise your libido, eh? 

Meet "Magic Power Coffee", world's first (and last?) aphrodisiac coffee.

Now, you may say, this is cute and stuff, but what does it have to do with MLM? Ah, but look at the words "income opportunity". Yes, this is a MLM.

Quoting from a recruitment website :

Start Your Magic Power Home Business Today Start as a Standard Associate for only $70.00 plus a one time $15.00 administration fee. Quickly break even, operate for FREE, and build your Home Based Business part time until it exceeds your primary income source

Furthermore:

The Magic Power Coffee Home Business Opportunity provides multiple income streams. They are covered below.

Personal Enrollments:
Each time a member joins the home business opportunity via your invitation you are awarded $15.00 to $45.00 depending upon their membership level... To keep it simple and free, enroll three.

Matrix:
When you introduce and invite others to become members they too establish their own Home Business. You are accredited through a 3 X 10 matrix system for those who fall within the three positions below you. ...

Matching Bonuses:
Matrix Bonuses are percentage matched down 6 generations of each individually sponsored member

Retail Sales:
Retail sales of Magic Power Coffee and the Magic Power Product line generate commissions...

Leadership Pool:
3% of the entire company product are sales set aside and distributed proportionately as you reach certain milestones. The Tour will explain this best, but the award amounts are substantial.

Thus, there is no doubt this is MLM, right? Except the product is ILLEGAL, as it is NOT all natural, as it claimed.

An 2014 Update on AiYellow: Is this thing for real or for grins?

Recently, there seems to be a resurgence of comments, on AiYellow, probably because my previous blog post on AiYellow is somehow now #3 on Google search when you search for AiYellow, as of today, 18-AUG-2014.

Wow, how did that blogpost got to #3 search for AiYellow?

This, inevitably, has drawn in various defenders of AiYellow, who copy-paste a bunch of marketing material, without understanding the CONCERNS I had brought up almost two years ago regarding the legality and utility of AiYellow.

So far, it seems nothing has changed regarding its business practices, and the products are being marketed with the wrong emphasis, with its utility (i.e. how effective it can be) in further doubt.

Let's study one aspect of the problem... "Alexa Ratings". Feel free to check it yourself, as I can only offer you a snapshot of the information as I see them today, 18-AUG-2014.

Alexa rating for AiYellow can be found here: http://www.alexa.com/siteinfo/aiyellow.com  It's the 5th most popular link regarding AiYellow, as shown by Google search above. You should see something like this:

Alexa Overview of AiYellow.com, part 1, red lines and words are my comments

Global rank 7117th, yet in South Africa 135th. Why is it so much more popular in South Africa than elsewhere where global rank has dropped 2000 places in last 3 months? Let's keep looking.

Why is AiYellow more popular in South Africa and Thailand,
than where it started: Argentina? Colombia? 

The audience geography is strange. Normally if a website started in a particular country its countrymen would have embraced it first, so it should be more popular at home than abroad. AiYellow is exactly the opposite: it's more popular in South Africa and Thailand than its home in Argentina. This is a very weird growth pattern, keep that in mind while we keep looking.

Only 15% of AiYellow's visitors came from search engines
(but there's an upward trend)

According to Alexa, only 15% of visits to AiYellow came from search engines, and the most popular search terms seem to be South African. However, most visits seem to have came from the parent company, AmarillasInternet.com.

But it is where the visitors actually go that is the most interesting:

MLM Basics: Why are there so many names for MLM?

Have you ever wondered why are there so many different names for multi-level marketing? Here are most of them:

• 

  Network marketing? Multi-level marketing?
  Home-based Franchising? Direct Sales?
  Concentric Marketing? Affiliate Marketing?
  Referral Marketing? Inline Marketing?
  WTFIsIt Marketing?
  (Photo credit: Wikipedia)

  Multi-level marketing, the main term
• Network marketing (most often used alternative)
• Home-based Business Franchising -- WARNING: franchising is NOT multi-level marketing
• Direct sales -- selling direct to consumers, related to but NOT equivalent to MLM
• Affiliate Marketing -- now used by Vemma, often plagued by fraud
• Seller-Assisted Marketing -- mostly a "business opportunity" scam
• Referral Marketing / sales -- marketing via word of mouth; some forms may be illegal
• Dual Marketing / Dual-Level Marketing -- mainly used by Mary Kay, still MLM
• Concentric Marketing -- used by convicted pyramid scheme Burnlounge, replaced "levels" with "circles", but otherwise, the same as MLM
• Consumer Direct Marketing -- the consumer is doing the marketing, potentially illegal if recruitment heavy, as it becomes recruiters recruiting more recruiters. 
• Inline Marketing -- trademarked by "Nutraceuticals Inc", it's still MLM

There are probably a few more I missed. If you spot some new ones not on this list, as a something-marketing, feel free to let me know via the comments.

Any way, why are there so many fancy names for the same thing?  Fraud experts, such as Tracy Coenen say this is an attempt to obfuscate and distract from the bad reputation multi-level marketing had picked up over the decades it had been in existence. However, I think this is also a symptom of how the decentralized nature of MLM became a sin, not a virtue. People are just appropriating terms that sounds SOMEWHAT similar to multi-level marketing, and in some cases, inventing them out of thin air.

First, let us define multi-level marketing... a marketing strategy where the sales force is compensated on multiple levels... direct sales profit, and portion of sales profit achieved by other salespeople they recruited (downlines). Remember, MLM = direct sales + commission based on downline sales.

But first, we have to clear up a few myths...