Do you find yourself attending home parties, just to find out that you spent money that you cannot afford to spend or bought an item that you really did not need? Even worse, did you find yourself signed up to hostess a party or become a dealer of a particular product? This can easily happen when you attend parties that operate off of pyramid schemes. Once your money is gone, you cannot get it back. As well, you cannot regain the time that you lose when you participate in pyramid scheme parties, so it is best to avoid these, altogether.
You might be familiar with some pyramid-scheme businesses such as Avon, Mary Kay, Tupperware, and Amway, but these pyramid schemes keep rejuvenating themselves in more elaborate fashion each year. Even more, you likely won’t discover some of the pyramid schemes until it’s too late. So, how can you identify pyramid schemes before you buy or get involved in some other way? Here are some tips for helping you identify pyramid schemes before they take your money and your time:
Home parties. Many of the pyramid schemes operate with home-based parties as a means of selling because the recruits are as important as the sales. The top person needs plenty of salespeople to peddle their wares, so the sales person that asks you to hold a home party is actually after a particular number of sales and a certain number of recruits. What the person fails to tell you is that you are a potential recruit. Too, you just might sign up, even if you don’t want to, because you will likely have good sales during your first party, which makes the selling process look easy. Don’t be fooled, though. You’ll likely have good sales, at first, because your friends and family want to support you, and their purchases serve as shows of support. Your family and friends cannot keep such expensive shows of support up, though, and why would you want them to do so?
In addition, good sales will affect your good judgment about paying for a starter kit. The dealer who wants to recruit you will point out your wonderful sales and suggest that you can easily make back the money from your starter kit Again, don’t be fooled. The company makes money from your starter kit purchase because it is a product purchase, just like all other items. So, thinking that you can quickly make your money back (and a profit), you purchase your Starter Kit (or your membership) into the elite club that allows you the privilege of selling their product for their profit. Congratulations! You have just paid someone to allow you to work hard for them. Is this what you really want? Chances are you considered working for the company because you needed money, not needed to spend money? How’s that for slick salesmanship?
Work your way up. By your second or third party, you might realize that selling is not that easy. Even so, you keep in mind the top person on the totem pole and try to convince yourself that you can work your way up. After all, this is better than admitting that you’ve been duped by a pyramid scheme, right? Besides, you need to recover the money that you lost on your kit and/or membership. What about your family and friends that you are taking advantage of, though? You might think that you’re not taking advantage, but you are when you allow them to buy products that they do not need and/or cannot afford. Even more, you will likely get a hefty commission from your sales, which might be around fifty percent. This can cause rifts between family and friends, just for you to realize (in the end) that you are working to make someone else rich.
Sell to friends and family. Anytime a sales needs to happen by extending an offer to friends and family, beware! This means that you are likely working the pyramid scheme yourself, placing yourself higher in the pyramid that your friends and family because the sales scheme relies on loyalty from friends and family. If you are well respected in your friends and family community, you will likely be able to quickly score some sales due to loyalty. Even so, will your friends and your family walk away bitter because they felt they had to make a purchase to avoid looking bad in your eyes? This could happen without you even knowing it, and you don’t want to live with the guilt of financially harming your friends and your family, right? Too, you don’t want to drive a wedge between you and your friends and/or family, so take care of them by not putting them in the position of feeling they need to make an unnecessary purchase to help you out. Avoid pyramid scheme sales at all costs.