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Otherwise Smart People Take In By Scams

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  • Otherwise Smart People Take In By Scams

    In the past week I've had two otherwise bright acquaintances taken in by scams. Both are convinced they will succeed and that they are involved in legitimate businesses. This is disturbing to me and an indication of the desperation in today's economy.

    "Jim" has had a great career, recently stepping down from a role as president at a large non-profit organization. He told me he was interested in working with start-ups, but apparently he took a step in a different direction. He joined one of those 100%-commission, no-office, we-hire-anyone, pay-hundreds-upfront-for-your-training product sales companies. He went from "President" to "Junior Sales Associate" just like that. Wow.

    "Mary" acknowledges she's joined a multilevel marketing firm (selling some kind of magical coffee beans) but is convinced she's "near the top" of the chain. This one is ridiculous. I asked her if I could try some of the coffee, and she said she can't sell me any, but she can recruit me to be a salesman for it! Can that be more of a pyramid scheme???

    Jim and Mary are both very intelligent individuals but they want to believe so badly they are going to become millionaires with their new-found "careers." They are so blind they can't see that a quick 30 second search on Google exposes their employers as total scams.

    Anyone else have some experiences like this lately?

  • #2
    I haven't had any personal experiences like that, but every time I hear of a scam like that on the news or online, my first response is, "How stupid can people be?" If people would just use a few brain cells before signing up or clicking on an e-mail link, all of these scams would go away. As you point out, thanks to the internet, Google, Snopes, etc., checking on these scams is quick and easy.

    I guess when people are truly desperate, they will grab onto any shred of hope they can find.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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    • #3
      I've had several people who tried to recruit me for MLMs, but the most surprising one to me is one that involves flipping real estate, and I was being recruited by a woman whom I consider to be highly intelligent and has a MBA.

      Why is she even involved in this? I honestly don't know. I've listened to her pitch with an open mind, politely declined, but walked away wondering just how she could become involved in such a thing.

      Perhaps the timing plays a part as well, as this was back in early 2008, when the real estate bubble was starting to implode. Perhaps the dreamy promises were simply too irresistible to ignore. Perhaps the power of denial is not to be underestimated.

      Whatever it is, I still see this co-worker from time to time, we still have lively conversations, and I still like her.... But she doesn't bring up real estate and MLMs anymore.

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      • #4
        Almost a year ago, a good friend of mine (went to college and did just about everything together) called me trying to sell me into a similar setup... I don't remember many of the specifics, but it ended up that instead of him recruiting me, I was trying to talk him out of continuing with it. I'm not totally sure what he's done with it of late, but I only hope that he's not gotten himself crushed/burned by it somehow...... He's very intelligent and normally is pretty smart about what he does... so hearing he's in on that, and trying to talk me into it as well really surprised me. It's almost frightening the calibre of people that can be seduced by promises of easy money.....

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        • #5
          "Mary" acknowledges she's joined a multilevel marketing firm (selling some kind of magical coffee beans) but is convinced she's "near the top" of the chain. This one is ridiculous. I asked her if I could try some of the coffee, and she said she can't sell me any, but she can recruit me to be a salesman for it! Can that be more of a pyramid scheme???
          That is very strange. What was the reason?

          Jim and Mary are both very intelligent individuals but they want to believe so badly they are going to become millionaires with their new-found "careers." They are so blind they can't see that a quick 30 second search on Google exposes their employers as total scams.

          Anyone else have some experiences like this lately?
          I have heard of some companies that have an MLM component have been deemed illegal. However, these companies must fit the legal defintion of an illegal pyramid. Most companies with an MLM division are legal.

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          • #6
            Re: Otherwise Smart People Taken In By Scams

            Originally posted by disneysteve View Post
            I haven't had any personal experiences like that, but every time I hear of a scam like that on the news or online, my first response is, "How stupid can people be?" If people would just use a few brain cells before signing up or clicking on an e-mail link, all of these scams would go away. As you point out, thanks to the internet, Google, Snopes, etc., checking on these scams is quick and easy.

            I guess when people are truly desperate, they will grab onto any shred of hope they can find.
            HI DisneySteve,

            I think one must carefully research all entreprenuership opportunities, before they enroll in this program. If a MLM has been heavily investigated by the Attorney General, you should take serious pre-caution joining it. Although, opinions from average people have some merit, they often reflect viewpoints that are infected with bias and misinformation.

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            • #7
              RE:Otherwise Smart People Take in By Scams

              Originally posted by kork13 View Post
              Almost a year ago, a good friend of mine (went to college and did just about everything together) called me trying to sell me into a similar setup... I don't remember many of the specifics, but it ended up that instead of him recruiting me, I was trying to talk him out of continuing with it. I'm not totally sure what he's done with it of late, but I only hope that he's not gotten himself crushed/burned by it somehow...... He's very intelligent and normally is pretty smart about what he does... so hearing he's in on that, and trying to talk me into it as well really surprised me. It's almost frightening the calibre of people that can be seduced by promises of easy money.....
              HI Kork,

              I am just curious. What was the name of the company that you were trying to talk your friend out of.

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              • #8
                RE: Otherwise Smart People Take In By Scams

                Originally posted by Broken Arrow View Post
                I've had several people who tried to recruit me for MLMs, but the most surprising one to me is one that involves flipping real estate, and I was being recruited by a woman whom I consider to be highly intelligent and has a MBA.
                Hi Broken Arrow,

                I was wondering what MLM company the woman belonged to?

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                • #9
                  Originally posted by Justice44 View Post
                  That is very strange. What was the reason?
                  She could only sell me a sampler kit that had 50 or so single-serving size if I "joined the sales force" with her as my sponsor. She had one and used it to try and recruit people by showing them or having them try the samples. So she could give me some of the single serving samples but there was no way to buy a 1 pound bag or any sizable amount of coffee from her. Just samples!

                  Maybe she really could sell a bag of it but was trying hard to convince me to join under her... If that's the case, how shady!

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                  • #10
                    Originally posted by Justice44 View Post
                    Hi Broken Arrow,

                    I was wondering what MLM company the woman belonged to?
                    I'm sorry, but I do not remember. I've only had one full conversation with her about it, and that was more than a year ago.

                    I have another co-worker whom I've spoken to more often about, and his MLM is YTB (Your Travel Biz).

                    A friend of mine who tried to recruit me in the past was involved in Equinox. That one has been banned to "do business" in our state.

                    I don't actually have a problem with MLMs per se. Some are certainly shady, but I agree there are legitimate ones out there. We had a member on here that was involved in what I believe is a legitimate one, where the goal is to provide a different route to sell a legitimate product. We also have another regular here, who is both very intelligent and is fully aware of the downside of MLMs, and was involved in selling a viable product in my opinion, but hasn't piped up yet. So yes, not all MLMs are bad.
                    Last edited by Broken Arrow; 08-21-2009, 07:59 AM.

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                    • #11
                      With the economy where it has been, I have several neighbors, who I think are pretty intelligent people, get involved with some of these. The worst is the juice-drink scam (and the people who got my neighbor involved are really, really strange). You are supposed to drink a bottle per week (4 oz/ day) and, within 3-4 weeks, you should be "feeling great". The bottles cost $32-$37 each. The sales pitch-who wouldn't want to "feel great"? They had no answer for me when I asked how it would make me feel if I already feel great. Oh, and if I WERE to order a bottle (although one won't do anything-I need three or four), they collect my social security number and make me a consultant all for free! What a deal!

                      I've had a lot of neighbors get involved in the home jewelry party thing, too, which I personally find less offensive.

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                      • #12
                        Not only on the scams, my mil otherwise smart woman got upset with me cause i let my kids play on the play thing at mcdonalds after she sent me the email warning me about the hypodermic needles supposedly found in one. umm I think that someone would have put that on the news if it were true. Especially since a kid supposedly died. omg

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                        • #13
                          Yea, the internet seems to breed stuff like that, irmanator. ...not to mention all the other various schemes, scams, and cons out there.

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                          • #14
                            I have been contacted by a few representative of MLMs such as YTB and a life insurance place. Im not into selling stuff like this to begin with, but I find that if a company has a website that starts a video automatically, then I am more than confident it is a scam. I have been to many sites offering to help you earn money from home and they all start with a video telling you how to get rich quick. What really bugs me is the word "referrals" when it comes to companies or websites is just teeming with the thought of potential scams. This is really hurting my website, which is basically a site where people can list refer a friend offers. My site doesnt make any money for people, it just helps people find other people looking for a service that will pay rewards for finding them customers. I only allow legitimate offers for companies like Directv, ING and Sprint, but it seems that when people first come to my site they instantly get the impression that it is a scam. I understand why people think this, but I have no idea how to combat this.

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                            • #15
                              Originally posted by kork13 View Post
                              Yea, the internet seems to breed stuff like that, irmanator. ...not to mention all the other various schemes, scams, and cons out there.
                              Before the Internet, they were called urban myths like the Neiman Marcus chocolate chip cookie recipe...the library has books about them!

                              On the same vein as the original post, one reasonably intelligient couple was telling us about their vacation "win" of 2 nights free she got at the exercise club she frequents. Seems they had four or five places to choose from, but when they called, they were told the available dates were already full unless they wanted to book for 4 nights and get two free. Golly, what a "win" unless it is for the hotel or resort! There is no "free lunch" so to speak and if it's too good to be true, then it isn't true!

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