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FIB - Scams 101 - Ye Olde Archives
Posted By: Christian In Response To: Okay, I've heard the NEGATIVITY word used a lot today..... (MaaMaw)
Tuesday, 16 November 2004, at 1:06 p.m.
I'm not in emerald passport but have been looking for information on this company,... nothing too pursuasive on either end. I did want to clarify what I think is the correct way the compensation plan works.
The compensation plan doesn't seem to difficult to understand... althought I don't know how easy it will be to convince people to join (or have the company convince). I think MaaMaw is misunderstanding the compensation plan though.
Just for clarity let me try to explain following her example as I understand it to be from the presentation.
John(a qualified distributor) brings in Chucko. Who Chucko brings in Tom and Jerry for John to qualify. As soon as Chucko brought Tom and Jerry to John, they belong to John, but is now qualified to bring people directly under him.
Now Tom and Jerry have to bring 2 people to qualify as well, so they bring 2 people, each to John (Donald, Huey, Dewey, and Lewey). Now Tom and Jerry can break away and put people under them to make money.
But now, John has 4 people that needs to bring him 8 people before they can make money for themselves. Hope that makes sense.
It really sounds like a great enticing plan. But i really don't know how well it would work given people's fears and doubts. I wonder how much or what the ratios are for how many leads you need to buy to have a person join. I mean if it's directly related to how much money you put into adertising since "the work" is done for you, it doesn't sound bad... But as with any business, there's just a big risk in that leads may not join, or your advertising may not work.. and when that happens it's over. I think the biggest challenge with this company will be to setting up the correct amount of money to advertise, and how well the people that have been brought under you from other people perform.
Chucko doesn't make money on them because the first two sales, or people have been given to John.
> I prefer to substitute REALISM and LOGIC and just plain COMMON SENSE.
> When I was scammed out of a whole bunch of thousands of dollars, I didn't
> have any of those things -- and I didn't have much NEGATIVITY either. I
> blame no one but myself for the stupid things I did and the money I threw
> in Mr. Toilet.
> I wish I'd had a place like this to come and ask questions, and read
> opinions both negative and positive, and see the bad with the good. (Of
> course there were places like this, I'm sure, but I was new on the
> internet and I didn't know which end was up, down, or sideways... and
> anyhow, I hadn't developed a HEALTHY SENSE OF NEGATIVITY yet, so I doubt I
> would have listened.)
> That's why we present the bad with the good here --
> and unfortunately, sometimes we just can't find the good so we present
> only the bad and that makes some people accuse us of being NEGATIVE.
> But it's our JOB (gotta hate that word!) to save people from making the
> same mistakes many of us have made. It's a dirty job, but somebody's gotta
> do it.
> Yes, everyone has to make his or her own decision... don't follow
> "Your Fearful Leader" like obedient little lemmings... but get
> the dollar signs out of your eyeballs and *THINK* before you dole out your
> hard-earned cash, that's all I'm suggesting.
> Kim, I have been nothing but polite to you. I realize a couple of things I
> said were offensive, and I have apologized. I actually think you believe
> in what you're doing -- and I'm not sure you even realize yet that it's a
> classic pyramid and that nobody is selling products to the general public
> but to more distributors and more distributors and more distributors.
> How you choose to make your money is your own business -- but I would
> rather you *not* promote the opportunity on this board please.
> FOR ANYONE CONSIDERING THIS BUSINESS:
> I went to the corporate site and dug deeper.
> The ORDER FORM (for the product the company is selling) asks for your
> "Associate ID# or Customer ID#" and it says "both ID # are
> the same" (which sounds to me like the distributors are the
> customers, but I could be wrong).
> It says your "Independent Distributor ID (Associate ID) or Customer
> ID" (remember, both are the same) "can be obtained by
> registering online first" (sounds to me like there's only one
> registration process, which leads one to believe the customer is the
> distributor and the distributor is the customer, but I could be wrong).
> I also noticed that the "purchase price of the PASSPORT TO
> PROSPERITY" is payable in full by the Purchaser at the time of the
> "execution of this Contract" (that seems odd; I, as a customer,
> have never been asked to execute a contract unless I'm buying something on
> credit) --
> and (here's the corker) -- the purchase price "is to be forwarded via
> private courier."
> *PRIVATE* *COURIER*
> Don't they have mail service in Panama?? (You did know they're in Panama,
> right? That's why the guy on the phone started hyperventilating when the
> caller asked, "Where are you incorporated?")
> Okey dokey, this has been my understanding in the past with other
> companies (although I admit I don't know about this particular company):
> Some companies that stay just one step ahead of the law like to exchange
> money through private courier services because it avoids the pesky problem
> of Postal Fraud, which can be a very serious problem indeed.
> It's very expensive to deliver things by private courier, but strangely,
> when I watched the movie, I noticed they said, "You're offering 600
> million people on the web the opportunity to receive thousands of dollars
> DELIVERED RIGHT TO THEIR DOOR."
> Do they mean by private courier?
> That seems odd (but I could be wrong).
> Okay, about that movie. It moved so fast I had trouble following it. I
> couldn't see very well either, because I had dollar signs in my eyes (I
> guess because they flashed on the screen so often). I did manage to take a
> few notes though:
> "you can literally earn a thousand dollars or more before this night
> is over"
> "your power profit system finds all the people for you"
> "closes all of your prospects without ever having to answer any
> questions"
> "delivers thousands of dollars immediately to your door"
> About John (who is really raking in the bucks), it said he decided to try
> "one minimal exposure" (which is "an extremely fast way to
> jumpstart your business"), and then it goes on to say, "You can
> make three to seven thousand dollars in one week or even in one day, as
> that's usually the case."
> Gadzooks, no wonder they're using a private courier instead of the U.S.
> Postal Service! They aren't making actual income "guarantees,"
> and they have a disclaimer on the site, but gollywhiz, that sounds about
> as close as anybody can get to an income guarantee without jumping off a
> cliff.
> John went from $5,000 his first two days to nearly $30,000 in just two
> weeks by signing up seven people, but "all you really need is three
> people."
> They forgot to mention that your three people usually *won't* do what they
> need to do to "create a domino effect so powerful it will put more
> cash in your bank account than you ever dreamed possible." (It's
> human nature, especially among "opportunity seekers").
> Nope, after wasting my entire morning on this, it doesn't seem like a
> rock-solid opportunity to me (but this is just my personal opinion; I
> could certainly be wrong) -- and it doesn't seem like an opportunity that
> requires "real work." It seems like an opportunity for people
> who want to do absolutely nothing except answer the doorbell when the
> private courier rings (every day) (packing another few thousand bucks).
> I'm not saying you aren't working your butt off, Kim -- I'm talking about
> the typical "opportunity seeker" who is going to buy into this.
> I wouldn't touch this with a ten-foot pole, but that's just me. I don't
> doubt it works for some people, and it might even work for me -- but as
> much as I need the money, I don't need it that much.
> ENDING WITH QUESTION FOR ANYBODY WHO KNOWS:
> I have a very, very hard time understanding just about any kind of
> "compensation plan" unless it's straight commission or an hour's
> pay for an hour's work. I'm not trying to badmouth their compensation
> plan... *I am sincerely ASKING someone (anyone) to explain this to me:
> They said John makes two qualifying sales which go to his mentor.
> Then he makes his third sale and gets his first $1,000 -- let's say his
> third sale is to Chucko the Clown.
> So Chucko makes his first two qualifying sales (to Tom and Jerry), and
> those two payments go to John. Chucko starts making money on his third
> sale.
> Okay, so Tom and Jerry get two sales each -- that would be to Donald,
> Huey, Duey, and Luey.
> Here's where I get confused (sincerely confused, I'm not being
> "negative")...
> They said John gets the money from Tom and Jerry's.... then he gets the
> money from the first two sales Donald, Huey, Duey, and Luey make, and this
> goes on "to infinity."
> Why doesn't Chucko get the money from the first two sales Tom and Jerry
> make?
> When does Chucko step into infinity?
> How far can $1,000 be split??
> I sense this it going to make me look really stupid, but I don't get it
> and would love to have it cleared up once and for all (no higher math
> please).
> Luv,
> MaaMaw
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