Thursday, 13 May 2010

Recruitment is crux of Amway's or others racketeering


The billionaire bosses of the 'Amway/Quixtar' mob, and most of the copy-cat 'MLM' racketeers whom they have spawned, have steadfastly pretended to offer the 'World's Best Business Opportunity' which, they also steadfastly pretended is based on selling good value, high-quality, exclusive products, and/or services. Each victim of these scripted lies has been told that he/she will be an 'Independent Business Owner' who can buy products, and/or services, at wholesale prices and then retail them for a profit to their relatives, friends and neighbours.

In reality, for more than 50 years, virtually no one has actually earned an overall profit from buying 'MLM' products, and/or services, and reselling them. The 'MLM' wampum has been too expensive. Equivalent products, and/or services, were available at lower prices in traditional outlets. Consequently, there has been no real demand for 'MLM' wampum. Not only that, but 'MLM' racketeers have never set any limits on the numbers of so-called 'Business Owners.' Despite all these insurmountable hurdles, even if by some miracle the victims have managed to sell some 'MLM' wampum for a profit, the allied costs and time required for promoting, buying, collecting, delivering, etc. have made such limited retail activity, economically unviable.

Since it has been virtually impossible to generate real profits from retailing 'MLM' wampum, it has not been that difficult for 'MLM' racketeers to persuade their more vulnerable victims that they can actually make money if they recruit more people into the 'Business Opportunity'. Each victim has been offered a 'bonus' from the purchases made by his/her new recruits. Each victim has been offered more 'bonuses' when their recruits find recruits of their own. Each of these new victims, in turn, has been offered 'bonues' on their own recruits and on the recruits of their recruits, ad infinitum. For decades, 'MLM' victims have been told that the way to make big money is based on duplicating a proven plan of self-consumption and recruitment of other people to duplicate the same plan. According to this plan, 'sales' will expand geometrically. e.g. When a 'Business Owner' recruits 5 people who each recruit just 5 more, then the 'Upline Business Owner' at the top, will have 25 in his/her 'Downline', and that 'Business Owner' will receive a 'bonus' on all purchases made by everyone in the 'Downline'. Even though virtually none of these recruits will ever be able to sell any 'MLM' wampum, they buy it. The so-called 'bonuses' have, thus, been paid on these internal purchases, not on external sales.Theoretically, 25 recruits can recruit 125 more, etc. etc. ad infinitum.

Just as the claim that anyone can earn profits by selling the MLM products, and or services, is a lie: the theory that anyone can build a large 'Downline' is also false. Common sense and simple arithmetic reveals that for someone to be at the top: most must remain at the bottom. Only an insignificant minority can achieve the level where the so-called 'bonuses' are paid. However, in order for the victims to 'qualify' to receive the so-called 'bonuses' on their purchases and on those from their 'Downline' recruits, they must keep purchasing. So chronic victims continue to buy the 'MLM' wampum, and to put pressure their recruits to continue to do the same. The more they try to recruit others: the more their waste of time and money grows. It is as this stage, that the next phase of 'MLM' swindles kick in.

David Brear (Copyright 2010)

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