MLM Mythbusting: Did Harvard Business School Really Develop 3 Criteria of Successful MLM Companies? (No, they did not!)

English: Harvard Business School (Photo credit: Wikipedia)

Here's one of the most often repeated MLM myths: Harvard Business School teaches Network Marketing. That is a LIE. HARVARD BUSINESS SCHOOL DOES NOT TEACH Network Marketing, Multi-Level Marketing, or any such similar schemes.

MLMers who tries to legitimize the industry often repeat the claim that "network marketing is taught in 200 schools around the US, including Harvard Business School", and "HBS studied network marketing in detail and have developed a 3 item checklist to locate the successful ones."  Sometimes the list is also supplemented by a "4 stages of business success".

This is repeated ad infinitum by MLMers attempting to legitimate their own particular scheme, be in neutraceuticals and next uberfruit juice to woo bracelets and body wraps to... anything! In fact, search in Google for "Harvard Network Marketing" and you'll get bazillion hits. Okay, about 12 million hits. Almost all of them are lies.

Here's the honest truth:

There is only ONE SCHOOL in the US, that I know of, that offers a a degree in network marketing. It's a tiny little community college in Kansas called Bethany College. Technically it isn't even that. It's degree in marketing, with emphasis on network marketing.

(If you can cite another one, please show proof: magazine or newspaper article, school syllabus, etc.)

Harvard Business School (HBS) themselves are VERY TIRED of network marketers claiming something they do NOT do. In fact, if any MLM business claim so, it will very likely face a LAWSUIT from HBS, as this article (back in 1995!) had already busted. Quoting from the article:

 ``If the registrar's office had a dollar for every call we've had over the years over whether Harvard Business School teaches multilevel marketing or has studies on it, we could throw a very nice Christmas party,'' reads one internal business-school memo. ``This claim is harder to kill than a dandelion.''
What was once a nuisance now looks like grounds for potential defamation or libel lawsuits, says Frank J. Connors, a Harvard lawyer. Some handouts, for example, now claim _ falsely _ that Harvard has conducted ``extensive research in the network marketing industry,'' and that the business school calls multilevel marketing ``a once-in-a-lifetime opportunity.''

Got that? REPEAT AFTER ME: 

Harvard Business School DOES NOT TEACH NETWORK MARKETING!

Okay, where did this came from? How did this nasty rumor got started? 

From a network marketer, of course. 

TelexFree just gotten even more bizarre... to the observers

TelexFree claims to be a communciations provider (sells VOIP packages), but also offers "AdCentral", which is a clone of Ad Surf Daily "auto surf" ponzi. They were recently issued an injunction by court in Acre, Brazil to stop paying the recruiters.

And the TelexFree participants went absolutely bananas.

According to PatrickPretty.com, Brazilians are spamming all major Western media  Facebook presenses, including NBC, CBS, CNN, NYTimes, etc. claiming they are being persecuted.

Some even made Youtube Videos, which are rather entertaining, but hilarious when you consider their source:

• One video used "cattle encircle to protect calf from lions" metaphor to tell judges to leave them alone, stealing the video from NatGeo in South Africa. 

• Another guy walked into the virtual office (provided by Regus) of TelexFree in Massachussets, US, and pretend that the entire building works for TelexFree. As he's speaking Portuguese, nobody challenged him. 

• Another video had a member cosplay as Rambo (with an LED lighted "weapons") claiming to defend democracy (i.e. TelexFree) and ask people to 'stand up for their rights'

TelexFree Location Lie: It's TVI Express All Over Again

It's interesting how the scams just repeating themselves, albeit with a different audience.

Recently, when the Brazilian courts issued an injunction / cease and desist order against TelexFree, the various Brazilian affiliates started touting that TelexFree is a US company with a dozen year history.

Here's one example:

Yes, the corp search is real, but you need to read the WHOLE history... Like there are TWO TelexFree companies...

So where is this first one? Type in the address given: 4705 S. DURANGE DR., #100-J51, LAS VEGAS, NV  89147  USA into Google, and you get a mini-mart with mailboxes:

#100 is the mini-mart, and J51 is the mailbox number inside. You can zoom in on the streetview and you can see the Beauty Store is #110, and to its right is #115. So there's no doubt Minimart is #100. This is just a mailbox. 

Ponzi Liar Gets Jail Sentenced Doubled by Judge

A fraudster who got people to hand over 1.5 million had promised to pay back most of it to get a reduced sentence. When it was found that the guy hadn't paid a single cent, but instead, was exclaiming to the media that "New York district attorney has terrorized my family and me for six months", the judge revoked his plea deal and sentenced him to DOUBLE his original sentence.  He's gonna get four to TWELVE years.

http://www.ponzitracker.com/main/2013/7/2/judge-doubles-ponzi-schemers-sentence-for-failure-to-pay-pre.html

Woo in 2013: Some bogus images "proves" their product works? Nah.

Is your product from Mr. Bogus?
(Photo credit: Wikipedia)

The problem with modern health is it's so complicated that modern charlatans moved in using pseudo-science, fancy jargon, and bogus advertising to claim their products work.

In 2004 or so there was a flood of so-called "foot bottom patches" allegedly from Japan. The claim was you apply these to the bottom of your feet at night, and when you wake up in the morning, you'll find the patches having turned dark, and that supposedly had leeched "toxins" from your body, thus proving it works. 

What utter bogosity. The patches actually turn dark to ANY moisture. Just drip a few drops of distilled water will make them turn dark. Tests of pads turned dark with distilled water vs. pads turned dark under actual feet, as well as unused pads were tested, absolutely NO difference in metal content was found. 

The claims were so bogus, FTC sued the makers of Kinoki pads and shut them down. They claim they didn't really make money and thus can't pay the FTC fines. 

And now the patches are back, with even MORE bogus claims than EVER. 

BREAKING NEWS: Brazilian News "Fantastico" Investigates TelexFree, finds suspicion of pyramid scheme

The article's too long and it's in Portuguese, but you can read Google translation easily.

http://g1.globo.com/fantastico/noticia/2013/06/justica-ve-indicios-de-piramide-na-telexfree-e-determina-investigacao.html

BREAKING NEWS: If You Got Net "Profit" of $1000 from Zeek, You Need to Contact the Receiver!

According to the settlements thus far, and statement from Zeek receiver Ken Bell's update to the court, if you own as little as $1000 (i.e. you're a "net winner" and you got $1000 or more profit from Zeek) you need to settle with the receiver or he's going to SUE you!

Yes, as little as $1000.

And indeed plenty of people have settled, usually at 60% rate, i.e. if you owe $1000, you may be able to settle for about $600.

Those still dreaming about getting away with their illicit gains can expect to sweat quite a bit more.