Here come the MLM scams

[justusranvier]

I'm sitting here at a local Bitcoin meetup, listening to someone who knows absolutely nothing about Bitcoin talking about a MLM that's getting ready to start up.

If this is an indication of that particular industry getting involved it could make Pirateat40 look like a small time pickpocket.

[QuantumQrack]

Many thousands of people make an excellent living via multi-level marketing.  Not sure why you think its a scam.  A lot of the products (such as AmWay) are excellent as well.  What I hoped happened is that you educated this person about bitcoin which possibly might open the door for MLM to use bitcoin in some fashion. 

[justusranvier]

Many thousands of people make an excellent living via multi-level marketing. 

Too bad those thousands who make an excellent living need millions of suckers to make that possible.

[btcinstant]

MLM are you kidding?

[Meatpile]

Well if you didnt stand up and warn everyone then fuck you too! Just kidding, thats what sucks is there no money to be had in teaching and warning...

[TheKoziTwo]

MLM = Multi Level Marketing.

It doesn't equal scam, but a lot of those using the word "MLM" are using it to camouflage a pyramid scheme.

I'd say this is promising news, if all MLM, pyramid and ponzi schemes starts using bitcoin the demand will be massive!

On the other hand, it kills me inside to think about how easy some of these coming scammers will get off. But, maybe people who chase these scams and gets burned deserve it, they should know better.... at least they'll be taught a lesson.

[cbeast]

I was sitting at the same table while you were writing this and hiding your screen from me.  I am not convinced it is a scam until we see the posting. We will see. I'm as jaded as the next cybercat, but while the term mlm is notorious for scams, in this case it may not be because they are targetting experienced mlm folks about something they've never heard of.

[Bungeebones]

In my case, I felt morally obligated to make BungeeBones.com multi-level but started from the same beginning as the skeptics of it. Here's what made me go to MLM:

I had created my own script (a web directory) that can be installed on yours (and any number of other) websites that pulls its links and categories from my server. In other words, all the installs pool their traffic and their link subscribers. One advertiser gets listed in all locations.

Each location, in turn, gets to market the total traffic volume in the network (which is much greater and a better product than just the traffic their site generates). In return, they get a 50% perpetual commission (in Bitcoin) for each ad sale they make. No moral or ethics dilemma so far right?

But, uniquely, since every advertiser is also a prime candidate to add yet another web directory to their own site as well, and, if they do, they too start to generate sales FOR ME, then I felt paying an over-ride commission on their sales to the site that first registered them a requirement for my own conscience (since if they had never registered them and sold them advertising I never would have gotten them to add a web directory too and start making sales). The site that registered them was the prime and procurring cause I got them as a web directory installation site.

I did a lot of research into the difference between MLM (legal) and pyramids (illegal). As I understand it, the difference is that a pyramid makes their money by selling the membership or the business "opportunity" rather than a product like MLM does. So, in order to stay as far away from that line as possible I don't pay anyone for recruiting another web directory but only for the ad sales of their recruit. And I don't charge for the "business opportunity" either since the web directory is free as well as my management services of the directory are free also.

I hope that helps clarify the difference.

[justusranvier]

I'm as jaded as the next cybercat, but while the term mlm is notorious for scams, in this case it may not be because they are targetting experienced mlm folks about something they've never heard of.

That's why asked about whether or not any part of the business involves actually selling bitcoins to customers at any point.

The deer-in-the-headlights look I got in return was pretty much all I needed to know.

[kangasbros]

Many thousands of people make an excellent living via multi-level marketing.  Not sure why you think its a scam.  A lot of the products (such as AmWay) are excellent as well.  What I hoped happened is that you educated this person about bitcoin which possibly might open the door for MLM to use bitcoin in some fashion. 

MLM's are very scammy in general. There might be some honest work in MLM's, but generally that "industry" is very, very scammy. I recommend everyone to avoid those. You can use google and research why people think MLM's are scams by default, I think it is a no-brainer.

[cbeast]

Believe A Movie About Multi Level Marketing - On Honesty
Bill Hicks on Marketing

[ElectricMucus]

Many thousands of people make an excellent living via multi-level marketing.  Not sure why you think its a scam.  A lot of the products (such as AmWay) are excellent as well.  What I hoped happened is that you educated this person about bitcoin which possibly might open the door for MLM to use bitcoin in some fashion. 

I don't find this response the least bit ironic.

[AliceWonder]

MLM is not a scam.

Most people (including me) who have tried them are not able to make a profit from them but they are not a scam.

My mom keeps doing them. I sat down and showed her that after all the time she was putting in, her profits were less than minimum wage, but she still does them.

I think they are dumb and only a few ever really make any money but I do have to concede they are not scams.

[ElectricMucus]

Yeah Bitcoin is a sort for MLM too, so MLMs can't be a scam, rite?

[tstang]

MLM is not a scam. It's just the people who exploited it.

MLM or aka Network Marketing is one of the BEST Marketing Idea ever created.

Bitcoin is NOT like MLM.

 

[ElectricMucus]

The thread will probably keep me entertained for at least 2 hours

MLM is not a scam. It's just the people who exploited it.

MLM or aka Network Marketing is one of the BEST Marketing Idea ever created.

Bitcoin is NOT like MLM.

 

Like those at the top?
Did that tell you a MLM salesmen?
Entirely not.

[AliceWonder]

MLM is not a scam. It's just the people who exploited it.

MLM or aka Network Marketing is one of the BEST Marketing Idea ever created.

Bitcoin is NOT like MLM.

 

Best idea in that you can get a lot of people pimping your products using their own time and money so you don't have to pay them an hourly wage or any guarantee they will profit, but I personally think that is kind of slimy.

[AliceWonder]

I tried explaining that to mom too.

Amway isn't paying her to market their goods, she's paying them to market their goods. It's backwards.

[ElectricMucus]

I tried explaining that to mom too.

Amway isn't paying her to market their goods, she's paying them to market their goods. It's backwards.

So it's a scam.

[AliceWonder]

I tried explaining that to mom too.

Amway isn't paying her to market their goods, she's paying them to market their goods. It's backwards.

So it's a scam.

No, not a scam. Nothing is being mis-represented.