My mentor Sarah posted this on her blog to expose these pyramid schemes.
Do Your homework before you commit to a company or program to avoid pyramid schemes and scams. You need to know what to look for to do the analysis - When You know this it is like having your own crystal ball. You will be able to predict whcih companies are Scams and Pyramid schemes .
California Attorney General Brown said:
“YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else, Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.”
The above quote comes directly from the office of the Attorney General for the State of California. Industry leaders in the network marketing industry immediately reported YTB, or Your Travel Biz, as being a pyramid scheme. They had the knowledge to properly analyze YTB, and to see behind the curtain.
Another example is Burnlounge, they too were a publicly traded illegal pyramid. The Attorney General sued them and they terminated the MLM program within a few short days - All of their distributors lost their entire organizations.
Did you know that YTB has released plans to change to a franchised operation. You need to find out if your MLM company’s pay plan is similar to YTB’s. Read your company’s policies and procedures and the compansation plan. Once You have read these, compare it YTB’s P&P and comp plan, see if they are similar, I have seen many network marketing companies that have YTB mirror-image compensation plans .
Typical companies with low profit margin products and services using YTB mirror-image plans are usually service and education or technology-based operations.
As these companies grow, the number of people that get scammed increases, when the pain level increases and distributros atart screaming, the state Attorney General has to act. This is Why these companies last for only 2 or 3 years.
You can learn and watch for reports like this one by signing up for Rod Cook’s MLM Watchdog newsletter at http://mlmwatchdog.com/
My axiom “Get educated, or get scamed!”
You can further your education here for Free! Check out my Mentoring for Free website and this Free e-book, Success in 10 Steps.
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