Author Topic: PSA: New Pyramyid scheme circulating the jewish community (Read 20427 times)

Chaikel · « **on:** July 08, 2010, 08:03:14 AM »

I wasn't going to post this, because I assume that most DDers are savvy enough to avoid (especially after the whole ambit debacle), but I'm seeing some pretty savvy people joining.

I was contacted over a month ago to listen to a "speech" of someone explaining how to save money on travel. I was suspicious, and refused to go, unless he told me more information. I got the usual "just come, just come". After refusing, he gave me the name of the company, and I did some research (ie. google). Turns out you have to pay $200 to join and then $25 per month. You make money by signing new recruits.

They obviously offer services to make it legal (discounted travel), but it still is a pyramid scheme. I just want to point out, that yes you can make a lot of money working a pyramid scheme, especially if you get in on the top. Some of the people that signed up for Ambit when I was solicited for it made good money. What you have to ask yourself is, do you want to have the suckers at the bottom on your conscience

Eli · « **Reply #1 on:** July 08, 2010, 08:10:33 AM »

Chaik'l, I actually went to the speech having no idea what it was about. After roughly 2 minutes, I wanted to get tout of there but I was stuck. As you said, this is clearly a pyramid scheme with levels and payouts based on people you sign up - similar to any other MLM.

The only redeeming factor this thing had is that since it's pretty much new, there is potential -if you are an amazing salesman - to get a lot of people under you while it is still fresh, and actually make money. I still would never recommend this to anyone. While it is true and well known that the people at the top make a lot of money, it is still a pyramid scheme and you should stay away. The RbSh"O should help that we each can find legitimate Parnassa without coming on to things like this.

SuperFlyer · « **Reply #2 on:** July 08, 2010, 08:11:14 AM »

I know another one of those which has a one off fee of $250, than free, and am making money there, as I have an insider there.

Chaikel · « **Reply #3 on:** July 08, 2010, 08:20:41 AM »

It's just against my principles to make money off the loss of others. Especially people I know.

Quote from: SuperFlyer on July 08, 2010, 08:11:14 AM

I know another one of those which has a one off fee of $250, than free, and am making money there, as I have an insider there.

I don't know about any other programs, I was just commenting on this particular one. The 2 questions to ask to sniff out any PS are:
1. Do I have to pay money to "get in"
2. Do I make money by getting others to pay to "get in"

That usually cuts through all the smoke and mirrors they try to put up. They will always follow up with a "but...". By that time I'm long gone.

SuperFlyer · « **Reply #4 on:** July 08, 2010, 08:25:04 AM »

In my case its $200, and only a real shlemazel doesn't succeed.

jack12 · « **Reply #5 on:** July 08, 2010, 10:13:34 AM »

Can you give us more identifying details for this scheme ie the name of it etc so that we know to stay away?

aussiebochur · « **Reply #6 on:** July 08, 2010, 10:16:58 AM »

Quote from: jack12 on July 08, 2010, 10:13:34 AM

Can you give us more identifying details for this scheme ie the name of it etc so that we know to stay away?

Anything that sounds too good to be true (except flying around the world first class for free) stay away from.

Chaikel · « **Reply #7 on:** July 08, 2010, 10:26:13 AM »

Quote from: jack12 on July 08, 2010, 10:13:34 AM

Can you give us more identifying details for this scheme ie the name of it etc so that we know to stay away?

Quote from: Chaikel on July 08, 2010, 08:20:41 AM

1. Do I have to pay money to "get in"
2. Do I make money by getting others to pay to "get in"

Any program that answers yes to both of those is a pyramid scheme.
If you'd like to make money by "recruiting" others, there are many reputable commission based sales companies - even tzedaka organizations - that I can set you up with, that wont charge you, to make money for them

Yordai Dooma · « **Reply #8 on:** July 08, 2010, 10:26:37 AM »

Quote from: aussiebochur on July 08, 2010, 10:16:58 AM

Anything that sounds too good to be true (except flying around the world first class for free) stay away from.

Lol. The funny part is that so many people dont believe that one either until we show them that we do it.

SuperFlyer · « **Reply #9 on:** July 08, 2010, 10:29:33 AM »

Around the world for free? Tell me how.

aussiebochur · « **Reply #10 on:** July 08, 2010, 10:36:02 AM »

Quote from: SuperFlyer on July 08, 2010, 10:29:33 AM

Around the world for free? Tell me how.

A little bit of this, add mint, shake well.

SuperFlyer · « **Reply #11 on:** July 08, 2010, 10:46:37 AM »

Quote from: aussiebochur on July 08, 2010, 10:36:02 AM

A little bit of this, add mint, shake well.

the airline employee has to be shaken you mean. So that she forgets to charge taxes...

Dan · « **Reply #12 on:** July 08, 2010, 11:05:21 AM »

Bernie Madoff would be oh so proud if he knew about all these pyramid schemes making the rounds in his community.

Even the people who get in early and make money from these these scams still get burned because they usually wind up losing any friend they've ever had. They wind up bugging everyone they know to join the pyramid so that they can make a buck and in the process lose all credibility. Not much unlike some pesky insurance agent who always has the same agenda whenever they see/talk to you that causes you to avoid them at all costs...

Eli · « **Reply #13 on:** July 08, 2010, 05:48:10 PM »

The one Chaik'l and I were talking about is called WorldVentures. And I think it's more like $60 a month after the 200, but hey, if you sign up just 90 members in the first 3 hours you get $5,000 bonus dollars!

Oy, all the hype...

sprint · « **Reply #14 on:** July 08, 2010, 09:37:55 PM »

Chaikel, what takeh happened to ambit customers? I know quite a few people who signed up (against my warnings) as customers - and they still are customers. There is almost no way to audit what it would have cost via coned vs ambit, unless u crack the numbers monthly - did u do that? The ambit customers I know all received a letter at the end of their first year with a check - telling them since ambit promised to be cheaper than coned and were not, heres the refund. Of course - that could be a total bogus claim intended to make the customers feel good about themselves and their relationship with ambit (probably is) and they charged enough more that they could well afford to offer a "rebate"...I havent heard what came of the whole ambit thing...

jack12 · « **Reply #15 on:** July 09, 2010, 02:49:09 AM »

As far as I know, the ambit scheme is still alive and running and people are still getting others to sign up.

sprint · « **Reply #16 on:** July 12, 2010, 12:14:01 AM »

Did a quick google way back when it started on the head people in the company - I remember seeing that they had been involved in sleazy mlms before - didnt know that this would go belly up or not - but dont like to doing business with people with bad reps, period. As far as I know a lot of guys still getting electricity from them, but I wish I had a way to audit their bills against what theyd be paying with coned

SuperFlyer · « **Reply #17 on:** July 12, 2010, 02:49:45 AM »

Thank you Sprint, that's the spirit. People with bad history, should be avoided at all cost.

But just to say that something which isn't the regular business, is treif is wrong.

Just use your head.

Dan · « **Reply #18 on:** July 12, 2010, 02:42:38 PM »

An article on MLM/Pyramids:
http://www.vandruff.com/mlm.html

txtmax4 · « **Reply #19 on:** July 18, 2010, 12:45:05 AM »

As with all other MLM's, "discounted travel" is just the NAME of the product. The REAL product are the recruits.
And as Dan well put it, they will make a special mechitzah for you in shul...