Pyramid Scheme?
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11-11-2014, 11:11 PM
Pyramid Scheme?
A buddy of mine got into a business venture a few months ago. He was in need of money and met another young gentleman who told him he knew how my friend could make a shit-ton of money. All he had to do was sell a few products - cleaning supplies, cosmetics, energy drinks, etc. - and then convince his customers to start selling those products too. By doing so, my friend would be making money from each person to whom he sells, and to each person who decides to let him be their "sponsor." In turn, the guy who met my friend makes money because he's helped my friend make money who continues to make money from the people he made make money.

Seems legit. Dodgy

Anyway, to anyone who has ever heard the term, all of this smacks of a fucking pyramid scheme right from the beginning. I was thus quite dubious about being brought into the whole thing by my friend. But he kept asking and kept asking and I finally decided I'd attend one of their weekly meetings at a hotel. Creepiest and most seedy experience of my life. And I've experienced some creepy and seedy shit.

Afterward, I was left with a newfound hatred for stuffy-rich-white men and a bad taste in my mouth about the whole business model. It just can't be sustained. If one guy tags the next guy who then tags a bunch of other people who tag other people, and everyone's supposed to make money on this, it just can't work. You'd keep going until you had everyone in the world in the fold, and then the people on the bottom wouldn't have anyone to make money off of. If I understand the whole scheme correctly, this means the guy above them won't make any more money either, and this will travel up the line until the whole thing falls apart.

But maybe I'm wrong. I am, after all, bad at the maths and really high. So...


Anyway, I can't seem to talk my friend out of this. He's dead-set on this business plan and he's dismissing everything I have to say against it because he thinks I'm being "too skeptical." (He's one of those people who uses "skeptic" in a derogatory manner) Part of me wants to let him do what he's gonna do, but another part of me wants to save my bro from certain failure. First, though, I need to know that I'm not just ignorant of how successful business plans work and talking out of my ass. Anyone here have any experience with pyramid schemes? Is this business model not a classic example?

Through profound pain comes profound knowledge.
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11-11-2014, 11:19 PM
RE: Pyramid Scheme?
That is the classic cut type of pyramid scheme business.. I had friends almost get into those types of jobs right out of college. Because it turns out, it's basically the best you can get with a generic Communications or English degree outside of a generic office role job.

I suppose there are ways you can do it and actually advance up the pyramid to your advantages... but it basically takes being an aggressive dilhole to the people you meet by screwing them over to become your underlings.

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11-11-2014, 11:25 PM
RE: Pyramid Scheme?
This sounds almost exactly like the Amway (Scamway) scheme a friend pitched to me in the early nineties.
I went to one of their big seminars (also at a hotel).
It was like going to a church revival and it creeped me out too.
My friend never made a dime and just gave up, basically because everyone he approached about it saw it for the scam it is and turned him down.

Try looking up the company online, or checkout Amyway.
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11-11-2014, 11:29 PM
RE: Pyramid Scheme?
(11-11-2014 11:19 PM)ClydeLee Wrote:  I suppose there are ways you can do it and actually advance up the pyramid to your advantages... but it basically takes being an aggressive dilhole to the people you meet by screwing them over to become your underlings.

That's the thing with my friend. He's a bit of a sociopath and is more than willing to stomp on his underlings if it means he gets to rule the world. That's fine, but at the same time, he's also incredibly arrogant and perhaps overreaches his realistic potential. In addition, he's very naive (by his own admission) and doesn't want to see how this model can't be sustained. He views this as his ultimate ticket to the stars, and like a creationist, he keeps trying desperately to justify how it can work when it plainly can't.

I guess all I can do is let him find out. I don't want to have to sit back and do that, but, he might leave me little choice.

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11-11-2014, 11:30 PM
RE: Pyramid Scheme?
(11-11-2014 11:25 PM)pablo Wrote:  This sounds almost exactly like the Amway (Scamway) scheme a friend pitched to me in the early nineties.
I went to one of their big seminars (also at a hotel).
It was like going to a church revival and it creeped me out too.
My friend never made a dime and just gave up, basically because everyone he approached about it saw it for the scam it is and turned him down.

Try looking up the company online, or checkout Amyway.

That's exactly what it is. I just couldn't remember the name.

FUCK. Now I'm mad. Angry

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11-11-2014, 11:34 PM
RE: Pyramid Scheme?
(11-11-2014 11:30 PM)Misanthropik Wrote:  
(11-11-2014 11:25 PM)pablo Wrote:  This sounds almost exactly like the Amway (Scamway) scheme a friend pitched to me in the early nineties.
I went to one of their big seminars (also at a hotel).
It was like going to a church revival and it creeped me out too.
My friend never made a dime and just gave up, basically because everyone he approached about it saw it for the scam it is and turned him down.

Try looking up the company online, or checkout Amyway.

That's exactly what it is. I just couldn't remember the name.

FUCK. Now I'm mad. Angry

I'd try to talk him into running away from it as fast as possible.
Sorry for the bad news.
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11-11-2014, 11:41 PM
RE: Pyramid Scheme?
(11-11-2014 11:34 PM)pablo Wrote:  
(11-11-2014 11:30 PM)Misanthropik Wrote:  That's exactly what it is. I just couldn't remember the name.

FUCK. Now I'm mad. Angry

I'd try to talk him into running away from it as fast as possible.
Sorry for the bad news.

I've been trying. Even since posting this thread, I called him and we talked about it.

He just refuses to understand. He's not gonna get it until the cold wall of reality smacks him in the face and he sees that it's getting him nowhere.


You know, I'm recalling something the old, stuffy rich guy said to me when we met in the hotel lobby. He shook my hand and said "You see, that's what keeps me going right there. You young, confident guys coming in looking for success; that's what helps me to keep doing what I do."

Turns out it was less a heartfelt drive to help others succeed and more a veiled admission that he enjoys feeding upon fresh prey.

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11-11-2014, 11:47 PM
RE: Pyramid Scheme?
(11-11-2014 11:41 PM)Misanthropik Wrote:  
(11-11-2014 11:34 PM)pablo Wrote:  I'd try to talk him into running away from it as fast as possible.
Sorry for the bad news.

I've been trying. Even since posting this thread, I called him and we talked about it.

He just refuses to understand. He's not gonna get it until the cold wall of reality smacks him in the face and he sees that it's getting him nowhere.


You know, I'm recalling something the old, stuffy rich guy said to me when we met in the hotel lobby. He shook my hand and said "You see, that's what keeps me going right there. You young, confident guys coming in looking for success; that's what helps me to keep doing what I do."

Turns out it was less a heartfelt drive to help others succeed and more a veiled admission that he enjoys feeding upon fresh prey.

It's worse than just not making any money.
It can actually cost you because they insist their 'distributors' buy all this shit for themselves, and to stock up on it to sell to others.
It ain't cheap.
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11-11-2014, 11:52 PM
RE: Pyramid Scheme?
This shit almost made me fucking puke. It's exactly what he's into and what he tried to get me into. To the letter.


A lesson for all: BE SKEPTICAL. When your bullshit detector starts flickering, pay the fuck attention and get ready for the shit that's rolling down the road. Then you can avoid it like I did.

Through profound pain comes profound knowledge.
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11-11-2014, 11:52 PM
RE: Pyramid Scheme?
The most efficent way for somebody to learn is to have somebody in a position of authority prompt an idea then refute it. That is in turn at its best when it's an interactive process. In the form of a small group conversation.

You can't really do that. He's emotionally invested, you're his peer, you've been talking to him about this before which makes it touchy.

You need to try to manufacture that senario artificially. Read up on this stuff, be informed on the specific company he's talking about. Get testimonials, video one preferably and watch the video below (or one much like it) with him.

Give him control over the video and give him the option to turn it off and leave at any time and talk him though questions and what you've found out afterwards. Let him pause it to ask you questions.




It's a little involved but it'll give you the best odds.

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