Pyramid Schemes, Multi level Marketing & Network marketing, why people get duped into them?

[Major]

In recent years, due to high unemployment and little to no opportunities for students here, many people are often working in Pyramid schemes.

I have had 2 university class mates who were involved in a Pyramid scheme called Fragrance land and would often try to convince other students to join and invest in them.

What has caught me by surprised is the large number of people that work in these companies, even educated people are made to believe they are legit.

I even know a CSS beuracrate praising some one she knew who had invested in a Pyramid scheme called Forever, and said she was thinking about investing but didn't have time.

Another aspect that I have found interesting is that when you try to convince people who are involved in the Pyramid scheme that they would be scammed and the business model is shady and it would end bad, the response you get is that they assume you are being jealous of their "entrepreneur" and they bash you in return for not encouraging them.

This happened when I found out my cousin had invested 25k in a pyramid scheme and I had tried to convince him that it was a fraud but the response I got was that I was being jealous. Infact, i was bashed that I was wasting my life and not being smart like him.

Now, I dont understand, why so many people invest in such business models? Even educated people get involved in this. Why the govt does not get involved and ban them. Infact, why don't universities teach students to beware of such business models. Why no one talks about staying away from such types of businesses?

A common end result that I witnessed from these people was that they end up investing soo much time in such businesses that they even freeze their semesters or miss out on better job opportunity. They keep on buying the expensive products from the company which cost cheap in the actual market and dupe further people into the scheme.

I once got contacted by an Indian representative of Forever. His number is still saved with me, and he often shares watsapp stories of people celebrating their success. I have often in his stories Indian soldiers feeling proud of earning a "passive income". They even share story images of Pakistani females who have been tricked into the scheme and being invited to the monthly dinner that these schemers schedule in the 4-5 star hotels.

Multi level marketing and Network Marketing are some fancy words that are used for Pyramid schemes now adays.

Maybe i might be wrong and they are legimate businesses, would like some input on this from you guys.

 

[Savak]

I experimented with the Amway scheme for almost 2 months in 2012. I got out just a day before my refund date was going to expire.

But it's a brain washing cult where they program your mind to cut off all outside losers ie people lacking ambition, initiative, hunger to make big money, anyone who opposes the idea is content with a 9-5 and a set pay lifestyle.

The worst part about the entire system is that you just view each and everyone around you as a potential recruit. I partied and literally began to relax, enjoy life and take it easy when I got out of the scheme and no longer had to face non stop calls from my up line

 

[Major]

I experimented with the Amway scheme for almost 2 months in 2012. I got out just a day before my refund date was going to expire.

But it's a brain washing cult where they program your mind to cut off all outside losers ie people lacking ambition, initiative, hunger to make big money, anyone who opposes the idea is content with a 9-5 and a set pay lifestyle.

The worst part about the entire system is that you just view each and everyone around you as a potential recruit. I partied and literally began to relax, enjoy life and take it easy when I got out of the scheme and no longer had to face non stop calls from my up line

the cult part you mentioned is quite interesting and infact very true. They even promote socialization within.

Fragrance land for example, arranges trips and get aways every week for its recruits.

When you want to research about such companies on Qoura etc, their recruits will go to levels to defend it.

 

[Bewal Express]

My Uncle and aunty lost money in a Ponzi scheme in the early 90s by being duped into some scam with the promise of high returns. By brother warned them but they didn't listen, they managed to get something back under Mush

 

[PakLFC]

Is this the so called business that promises you riches for putting your name to number one on some list!!?

 

[ElRaja]

if the majority of revenue is coming from selling to distributors than it is an MLM ponzi scheme.

why do people fall for it? because it sells the idea of working for yourself whilst having a support network. in reality you are a locked in distributor for crap that doesn't have an organic market.

why do people stay in it? sunken cost, once u commit serious money and time to something, its a massive emotional shock to admit youve been taken for a ride. even if deep down you know that youve been duped.

what can you do if you know someone who is in this? show them the maths of how their product has no organic market.

beyond that everyones got to learn from their own mistakes, and if your really good at BSing ppl, you might even make money from MLM.

 

[Giannis]

A lot of uneducated immigrants fall into those and they also drag their naive relatives and friends back home, I knew this 50-something Bangladeshi immigrant in my neighborhood that was trying to pimp this pyramid scheme, no one bought into it and most of his clients were based in Bangladesh, the funny part is that he's lost all his money before in similar scams. If you're over the age of 20 and fall for these scams then I seriously question your intelligence.

 

[khan-92]

Knew people in ACN & ONE coin which try to market itself as next Bitcoin.
When they come to recruit me told them it is a scam & you will lose money & also friends and family members you recruit.
But they are so brainwashed don't listen to anyone.

 

[Itachi]

Two reasons. The people involved in these scams are hard sellers. They will get you involved with psychological tricks and whether you are educated or uneducated, you may fall in to this trap.

Secondly, by the time you will realize, you will become the hard seller to recover your amount. It becomes a loop.

 

[Major]

if the majority of revenue is coming from selling to distributors than it is an MLM ponzi scheme.

why do people fall for it? because it sells the idea of working for yourself whilst having a support network. in reality you are a locked in distributor for crap that doesn't have an organic market.

why do people stay in it? sunken cost, once u commit serious money and time to something, its a massive emotional shock to admit youve been taken for a ride. even if deep down you know that youve been duped.

what can you do if you know someone who is in this? show them the maths of how their product has no organic market.

beyond that everyones got to learn from their own mistakes, and if your really good at BSing ppl, you might even make money from MLM.

I have had trouble convincing people that what they have joined is gonna turnnout bad. But the common trait of auch people is that they are tooooo stubborn to listen.

They think im demotivating them and i am jealous of them

Though, the people who had not joined yet, when i convinced them they listened.

What i find hilarious is Indian army men are also duped into such schemes

 

[ElRaja]

I have had trouble convincing people that what they have joined is gonna turnnout bad. But the common trait of auch people is that they are tooooo stubborn to listen.

They think im demotivating them and i am jealous of them

Though, the people who had not joined yet, when i convinced them they listened.

What i find hilarious is Indian army men are also duped into such schemes

once u get into it, the first thing they tell you is that people who are jealous of your opportunity and success will try to pull you down. most people are quite negative about people who try entrepreneurial stuff, but the problem is that mlm isnt making u an entrepreneur, its making you a noncontracted distrubtor.

anyone can get duped into this stuff, i mean see how common it is to see stories of ppl making money, if u arent making that kinda money you will try things just to not feel left out.

 

[Major]

So i was doing research into this, and one thing i found really hilarious was that even lahore Qalanders was sponsored by a pyramid scheme company

B4U company is also involved in pyramid schemes that Lahore Qalander took as a sponsor and advertised.