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Article #1693

Re: for ordinary people

#1693
From: Dennis Grant
Date: Tue, 01 Oct 1996 00:00
80 lines
3361 bytes

> 
> 
> Hi,
> Have you ever noticed how most money-making schemes promise huge
> amounts
> of money and require you to part with more than you can afford?  Many
> of 

[crap deleted]

A friendly warning to anyone thinking about getting involved with any of
these "matrix" or "pyramid" based companies - the math is NOT on your side.

Typically, these schemes promise exponential increases in income for each
person added to your organization - which sounds legit enough - except that
you consume people exponentially as well.

An example:

There is a company out there that works like this: You pay them $150/month,
and they send you $150 worth of product to sell. If you fail to spend this
$150, you lose your membership. Every person you sign up makes you money, and
every person they sign up makes you money as well - you get a percentage of
their $150/month. Sign up 5 people, and you no longer have to sell product.
(although there's still a monthly fee to pay)

Sounds pretty good, eh? You sign up 5, and then they sign up 5, and then they
sign up 5, and you're making a percentage off of 125 people!

Except that you consume people so quickly, that later levels haven't a hope
in hell over ever signing up their 5 people.

Allow me to explain:

Assume it takes 100 contacts to generate 5 signups (which is _very_
optimistic - 1000 would be more like it)

The first guy talks to 100 people, and signs up 5.

They talk to 500 people, and sign up 25

They talk to 2500 people, and sign up 125.

They talk to 12500 people, and sign up 625. (This would exhaust most of the
people in a small town, and the scheme would be the largest employer in the
town. That's 625 people out of 12500 selling the same product. Are there 625
of the same type of store in _any_ town?)

They talk to 62500 people (a medium city) and sign up 3125

They talk to 312500 people (a large city) and sign up 15625

They talk to 1562500 people (a metropolis) and sign up 78125 (more than the
Canadian Armed Forces)

They talk to 7812500 people (a small country) and sign up 390625.

They talk to 39062500 people (More than the population of Canada) to sign up
1953125.

Is this going to happen? Not on your life.

Instead, you'll get one, maybe 2 people to sign up, and then run out of
people who haven't been contacted yet - and be forced to shell out the
monthly bill, with no hope of ever stopping.

The only guys who make money are those at the top - the parent company, and
their friends. Not you.




--------------------------
Dennis Grant (dgrant@cycor.ca or farnorth@isn.net)
http://www.farnorth.com/            Far North Multimedia          Professional
http://www.homescanada.com/         Homes Canada                    Web Site
http://www.farnorth.com/tcave.html  Trog's Cave                      Design
http://www.farnorth.com/netrek.html The Netrek Home Page
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From: dgrant@cycor.ca (Dennis Grant)
Subject: Re: for ordinary people
Date: 1996/10/01
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