TIP: Click on subject to list as thread! ANSI
echo: aust_ads
to: Jeff Hill
from: Rod Speed
date: 1995-05-01 07:54:18
subject: Extra Cash

PN> It is MLM. NOT pyramid.

RS> Fraid so. You cant get around the law just by changing the name. That is
RS> in fact an absolutely classic pyramid scheme. Have a look at this bit,

RH>       If you signed up 5 people for the discount,
RH>       and those 5 signed up another 5 each,
RH>       then that 25 signed up 5 each, and
RH>       that 125 signed up 5 people each,
RH>       you would receive over $700 per month,
RH>       paid directly to your bank account.

RS> Your income is almost completely generated from the pyramid
RS> structure, not from direct sales you yourself have made to
RS> a customer. THATs why its a pyramid marketing scheme and not
RS> a Multi Level Marketing scheme.

JH> These schemes always make me laugh becuase they really
JH> only work for the people who start the scheme. A little
JH> simple maths shows what a scam these systems are:

Yeah, and thats precisely why they are made illegal, coz its not
that obvious what the problem with them is to the average droid
in the street. You can be sure its dead obvious to the early people
tho, thats why they are so keen on them like its defenders in here.

JH> Iteration   # new people  total so far
JH> 1              0              1
JH> 2              5              6
JH> 3              25             31
JH> 4              125            156
JH> 5              625            781
JH> 6              3125           3906
JH> 7              15625          19531
JH> 8              78125          97656
JH> 9              390625         488281
JH> 10             1953125        2441406
JH> 11             9765625        12207031
JH>                               ^^^^^^^^

JH> By the time you get to the 11th iteration, more than the entire
JH> working population of Aust. will be involved. Who will pay them ?

True, that the massive gotcha. They work for the early adopters coz
by the time the later ones notice that problem, they have been screwed.

JH> 80% of the number of people involved joined on the last iteration,
JH> and are funding the starters. So for the bulk of people paying
JH> for a scheme like this, the chances are you won't get a cent. This
JH> applies no matter how small or large the number of iterations go.

JH> BTW :- Another 3 iterations, and you will run out of
JH> working people on this planet to join this scheme.

Yeah, a few tiny details like that |-)

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