The danger of pyramid schemes cuts much deeper than your finances, and social circle. Those will get destroyed, however, they’re not the true danger. As someone who’s had to start over several times now, believe me when I say they can be replaced. It’s a shitty thought to think all your friends are replaceable; they really are. Money comes and goes. What the pyramid schemes and Multi-level marketing teams will take from you is far worse than a few friends and all your savings.
It’ll suck to work hard, and drain your finances anyways; as you preach wealth and prosperity. But hey, its common knowledge at this point that pyramid schemes are bad your financial health. Yet they still generate millions in revenue. There are a lot suckers, but theres also a lot of knowledgable people who’ve made a slight blunder.
As someone who hates pyramid schemes, I want to be on the right side of history and share my experiences. Hopefully I can save a few people from ruining their fiscal year; save their social life, and hurt the profits of the enemy.
Today’s going to be a long rant. Not only will I talk about the danger of Pyramid schemes, but I’m also going to talk about how they rope you in. The schemes have evolved and therefore use new tactics. The days of Vemma are over.
Quick Recap; What Is A Pyramid Scheme
The simplest definition I use to spot a pyramid scheme is; if you have to pay to work for them, and your profits will be more reliant on recruiting people rather than selling products. You’re in a fucking scheme. If your friend from social media is sliding in your DM’s preaching a hot business opportunity that you need to jump on RIGHT NOW, they can’t explain it but theres a video and pages of testimonials. P-y-r-a-m-i-d S-c-h-e-m-e.
And really simple guys. Multi-level marketing is the legal version or term for a pyramid scheme. The danger of pyramid schemes cuts deep and can destroy lives. So the all mighty government decreed they would be illegal (thanks government). To get around this, the schemes decided to hide in plain sight, classified themselves as ‘multi-level marketing’, and went on with their day.
If they call themselves multi-level marketing, its a scheme. For a better understanding of Multi-level Marketing, please check out this definition by Investopedia. The unofficial money encyclopedia of the internet.
Let Me Clear Something Up
MLM practices within a legit company are beneficial. I.e you present a product or service the company could launch. You take the initiative to write a business plan, train fellow employees, and push sales. In return, you get 5% commission from the employees you trained to sell this product or service. That’s legit, and I know A LOT of people who’ve made a killing doing this.
However, you often have to be apart of the company for a while, with a proven track record and a solid plan. Not to mention a valuable product, and a standing body of employees ready to learn this product. Not some minimum wage worker being told they’ll get Bentley and be an executive within the next 6 months if they work really damn hard.
What Is This Hidden Danger
The hidden danger of pyramid schemes is what it does to your mindset. Once you’re in a pyramid scheme, you’re not just in a shabby business, you’re in an echo-chamber.
You’ll swear off university and post-secondary learning (for the wrong reasons, as there are plenty of reasons not to go these days). However, they present the argument that its money better invested in your ‘bUsInEsS’ and lifestyle than into education. Yet they preach to always be learning. You’ll have contempt for the 9-5, and truly think you’re helping people by getting them to give up their reliable income to join you in being scammed.
Since you’re giving up money, you’re invested. They tell you it’s your business, your vehicle to financial freedom, and your shot at building positive cash-flow. Speaking about always learning but being uneducated. In my experiences with people trying to rope me in, they always offer the promise of ‘residule income’ but never use the term cash-flow. Every book on money, business and investment that I’ve read over the years calls passive income cash-flow. I’ve never seen the term ‘reidule income’ written in a published book by a credible author. You know what does use the term ‘residule income’? The videos they use to rope you in.
How much learning are they really doing, if they’re using an incorrect term and showing little evidence towards reading and being educated by credible sources.
How Bad Is The Echo-Chamber
So bad when you quit your job they’ll tell you you’ve taken your first step to freedom. Manipulative enough to force all the ‘bUisNeSS-oWneRs’ to shake hands with new recruits and tell them the bright future and great opportunities ahead. Making them re-buy the bullshit despite months of financial loss, and alienated family members.
This is what keeps you roped in and your head down. You’ll miss real world opportunities, and think you’re disciplined or whatever for staying focused to the business.
And then your social media algoithm gets fucked.
Facebook’s Bad For You
They’ll tell you to share this opportunity to all your friends on social media, and if you’re able to recruit x amount of people in your first 30 days or so, you’ll get your money back and a nice juicey bonus. So you hit up all the suckers and people you don’t know too well on Facebook, Insta, Snap, you name it. You share posts, videos, testimonials and product displayes.
Then the internet algorithm’s pick up on this. Directing you too simialr ads, and posts that line up with what you shared. Fake news appears on your feed; everything becomes a conspiracy, and problems become injected into your mind and the market.
After all, every business exists to solve a market problem; and pyramid schemes need ridiculous problems to utilize ridiculous practices.
Your circle and feed will become nothing more than fellow schemers, telling each other you’re making the right choices. Suddenly you’re no longer in one scheme, you’re in seven. Because there’s just so many good ideas out there.
What You’ll Become
Someone who plugs their ears and goes La La La when people try to talk sense into them. You’ll think you’re financially free, even though you’re burning money every months. You’ll think you are the business, and make flashy videos, have pushy calls, and tote an inferior product.
In my experience pyramid schemers don’t read credible books. Opting to watch pesodo-science videos, and rely on articles and blog posts that are convenient to their world view. Its ok if they’re not fact-checked; fact’s are all apart of the conspiracy anyways.
You’re only friends will be fellow schemers, as you’ll have sales pitched your normal friends to death.
The danger of pyramid schemes becomes apparent when you think of stay-at-home parents. They don’t interact with many adults, many seek work from home opportunities, and everyone wants some extra income.
It becomes the perfect opportunity. Start your on business, part-time, make a crap ton of money, and keep your schedule clear to take care of the kids and domestic duties.
As long as you can stay out of echo-chamber, you’ll be fine. You may get scamed a few hundred dollars, and waste a bit of your time, but you’ll ocme to your senses. For the stay at home parents, especially the single stay at home parents; there easily and quickly roped into the chamber, and once their social media and google algorithms are manipulated, they’re stuck.
Travelers, and students also often fall prey. A job that suits a lifestyle lacking structure, though its often more the promise of quick riches, and insane cash-flow if you’re popular. And thats how they sell it to students and travelers. Are you popular? Do you have a lot of friends? Do these friends respect your input and thoughts? Well get into business with all your friends and be financially secure by this time next year.
Such a crock of shit.