HOW to know if the Company is running a SCAM SCHEME?
i made this article for people to have an idea on how they can analyze companies that offer opportunities to them. first and foremost, "think first before you decide and act".
have you heard about charles ponzi? ... a man, born in italy and became known as a swindler for his "money making scheme". from him, the term "ponzi scheme" originated and later on people called as "Scam".(wikipedia.com)
there are lots of "ponzi schemes" that had happened and still happening in various parts of the world.
these scams promise clients of usually high rate of income, that's why, many people were tricked and being tricked until today.
so, how can we identify a "legitimate company", that's running a"legitimate marketing plan", with reasonable rate of return from a company, may be legitimate, but is running a "ponzi scheme" marketing plan?
first, let's analyze the identities of a legitimate company... they have...
1. complete sets of legal documents of different fields.
2. legitimate business that has entrepreneurs or distributors with their licence to
represent their company, their products and services.
3. with "tangible" products and services for which people are compensated when
moved or sales are made.
4. licensed consultants to empower the whole companies system... their paying much
for this.
if you are a first time network marketer, you should be so keen in analyzing those facts i mentioned above.
no one will be truthful as they talk to you if their running a ponzi scheme. you could be fooled by their so-called "facts' if you fail to analyze what's really going on. they could show you some testimonials from other people, but mind you, those could be cooked up.
some people find hard times in finding the difference between a legitimate company and an illegal company. it is because, a legitimate company runs their business using a multi-level marketing plan, and so as the illegitimate one.
then, if you are unsure about a certain company, this may help.
company that runs a ponzi scheme...
1. can't provide documents that can fully disclose company's terms of contract
and company's general operations.
2. they usually offer "only services".
3. if they have products, it usually do not compensate with the amount that you need
to invest.
4. promise to have very high rate of return in just a short period of time. and can
promise to increase your profit a 100% in just couple of months.
5. they give you profits by just bringing in people to their company without working
hard for it.
here's a great example:
jose gets involved with company 'x'. it required him to pay P4,000 for his investment. all he gets from this are sets of training materials that he can use to start one small traditional business. these materials cost only about p660.
the process would be, jose will need to get 10 people, who will pay same as much as he did. and will get same things as he got. then, after fulfilling this, his company will give him p25,000. company a would have a benefit of around p15,000 with every one cycle of this process.
that process would also be done by those 10 people that jose manage to bring inside company 'x.'
after some time, company 'x' promise jose that they can give him larger amount of money if those people will get their another sets of people.
************************
try to analyze?
************************
company 'x' would only need to bring out about 16.5% of their client's investment cost. then, they can accumulate a astounding amount of p40,000 in just one cycle for a single person. if that client performed their requirement, they'll be paying him to about 60%(p25,000) of all the investments that that person brought them. the remaining 23.5% would be their "clean profit".
therefore, in our scenario, jose will get his compensations from the money of those people that he brought in the company..... and "this how ponzi scheme or a scam works "
be careful of this "Scam"
hope you've learned something networkers!
god bless
