Thread View: 01alt.make.money.fast
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Started by ROBERT CLARK
Fri, 12 Apr 1996 00:00
Internet Scams! 3
Author: ROBERT CLARK
Date: Fri, 12 Apr 1996 00:00
Date: Fri, 12 Apr 1996 00:00
227 lines
7516 bytes
7516 bytes
products you buy more cheaply from the supermarket. Thus, in
the end, you are your best customer in these programs, and
you'll be losing more money than making it. Of course
your up-lines are going to try to convince you to stay,
because they're the ones who have only to gain by you staying on.
Mind you, that's what happens for the "average" MLM worker. I
have heard stories of how others have been able to make as much
as $50,000 per year off of an MLM like AMWAY. But those people
have quit their day jobs, setup a regular office, placed ads in
newspapers and magazines, etc. They've gone all-out. If you
think that an MLM is an easy way to make lots of money, forget
it. It's hard work, just like starting any other business which
sells products. If you've got an extraordinary product which
sells itself, then you'll have yourself some earnings for a
while, until that product becomes trite. But if you just have a
bunch of high priced garbage, then you'll find it very
difficult trying to sell them. There are also some
not-so-legitimate MLM's out there. I think I heard that there
are about 2,000 new MLM's popping up every year. But there
are also perhaps 1999 old ones dying every year as well. Be
warned of the following situation, which is a REAL scam:
Someone approaches you about a great new MLM. They say that
there is NO selling whatsoever in it! They explain it to you.
You pay a monthly due of $10. You find 10 other people to
"manage" under yourself, each of them paying $10 monthly dues.
You encourage your down-lines to go out and do the same.
You will make 20% commission on each of your down-line's
monthly dues. So if you have 10 down-lines, each paying $10/mo,
then you're making $10/mo. (subtracting out the $10 that you have
to pay in). You will also make a commission on each of their
down-line's monthly dues. And so on... Eventually, this pyramid
spreads out, and you begin to see lots of money, supposedly.
It seems like such an amazing deal that nobody would pass it up.
But the problems that occur are: 1) This is
illegal in the U.S. It's basically the same scam that was
revealed in "A", above ("Make Money Fast" scam). 2)
Theoretically, the base of the pyramid becomes so broad that
there would be no more people remaining in the world to become
their down-lines, so the largest part of the pyramid is paying
$10/mo and not getting anything in return. Eventually, the
base of the pyramid falls out, and so does the "new" base,
etc. The pyramid collapses, and in the end, the only ones
that have made any money are at the top. The rest of the people
have lost a considerable amount of money. 3) You have to sign up
at least 5 people or more to just break-even. To be making much
more money, you need to have many others directly under you.
Most of the $10 dues goes to the guy in charge of the scam
directly, without trickling upwards. The rest of the people are
promised money, but seldom receive any. It's basically like
someone coming to you and saying, "Give me $10/mo."
Annotated Bibliography of Internet Scam Information
===================================================
The following is a list of scam-related information available on
the net via WWW, gopher, FTP, email, etc. Currently, it's a
small list, but will grow in the future:
* The U.S. Postal Service's web site on consumer fraud:
http://www.usps.gov/websites/depart/inspect/consmenu.htm
This web site came as a pleasant surprise. It contains a
wealth of information on such topics as mail fraud, MLM/Pyramid
schemes, work-at-home scams, etc. It contains links to other web
sites that have more information. It's definitely a MUST for
further reading. They backed-up everything I said in this report,
hitting most of the major points that I did.
* The National Fraud Information Center:
http://www.seamless.com/talf/ftc/ftc.html
This web site provides information on many specific scams or
categories of scams. If you think that someone's selling you a
scam, first check here. For example, if you're thinking about
joining a truck driving school, they have an article about it
which explains what you should watch out for.
Closing Remarks
===============
Finally, if you KNOW that someone is posting a scam, send an
email message to their system administrator to get their accounts
deleted. They have no business being on the net, and it's your
right, as a citizen of "the net", to get rid of them. For
example, if the guy's address is "user21@bovine.moo.com", then
you should send a message to "root@bovine.moo.com" and
"postmaster@bovine.moo.com", as well as "root@moo.com" and
"postmaster@moo.com". This way, you are ensured that
your email message will go through. "root" is a special username
on most systems meaning, "system administrator". And
"postmaster" is the person who is in charge of netnews postings.
If you see a scam posted to a newsgroup, simply write a
follow-up letter to the article, and insert the sentence, "This
is a SCAM!" That's all you have to do. It takes no more than 20
seconds of your time. WARNING!! If you do something like this,
you must prepare yourself for retaliation! If you have any
personal information available on the net, remove it.
If your ".plan" or ".signature" file reveals information about
your real identity, where you live, your phone #, etc., then
you might want to remove it temporarily. You wouldn't want a
crazy scam-artist to get a hold of your home address or phone #.
I hope this file has helped... If you want to ask me any specific
questions, I'm here. Fire away!
Ciao for now,
- Steve Weigand
(weigand@marlin.ssnet.com)
END OF FILE
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