Fraud Article: MLM, Pyramid Schemes, and Matrices – Fraudulent Information
Rod Cook Bs, MA, MBA
Rod Cook the MLM Watchdog Blasts this Ignorant Article, that is likely to confuse consumers AND cause THEM harm. All correct information is in Bold the incorrect misleading information isn’t. The paragraph below shows that the writer does not know what a pyramid scheme is and goes on in other paragraphs to show she does not know what a Matrix is.
Have you ever wondered what the difference is? MLM operators claim they’re not operating a pyramid scheme. Matrix and “forced matrix” operators claim that what they have is better than MLM. So what are the differences?
The definition of a Pyramid Scheme: The product or service that has “little or no value” and acts as a “shell” for hiding the exchange of money. The last 5 years most popular of these illegal pyramids that really harm people are Gifting or women’s Dinner parties. The normal scam hit to join one of these criminal pursuits is $5000. The piddly little mail schemes below usually get hit by postal inspectors. The big difference? The $5000 scams are felonies the $5 scam is a misdemeanor. Here is a link to a Gifting Pyramid where you can see almost naked women in handcuffs being led to jail! Http://www.mlmwatchdog.com/report_gifting.html.
WRONG WORDS: Pyramid Schemes are illegal in the USA, and probably abroad. We all know how these schemes work, or at least get the jist of the idea. A person (the originator) starts by sending a message to several people. Usually people he/she knows. The message in some round about way, will tell everyone to send him $5 or so…and then send the message to someone else. All the while adding names to the list, and each new recipient must send money to the first person, second person…etc
The writer is off again below! Rod Cook the MLM Watchdog has seen the complete genealogy of over 500 true MLM companies. The downline of people comes out as a skinny Diamond… NOT A PYRAMID. They pyramid scheme looks like a pyramid because they run out of suckers to put money in. In a typical MLM Company if no one signed up another person for years the Company would stay in business because of customers buying products of value to them. Http://www.mlmwatchdog.com/compensation_plan.html
WRONG: How is MLM different from a pyramid scheme? After all, on paper any MLM looks like a pyramid in reality right? The differences are very simple. In MLM there is a product being sold. Income is generated from “commissions”. It’s actually a pyramid scheme, except that the participants get something back…regardless of whether the people they refer actually pay for something…
Here the writer really shows ignorance! Good MLM companies sell billions of dollars of products using the internet. Quixtar the largest sells over a billion dollars itself. Selling e-books, software and newsletters are a tiny part of the 30 billion in legitimate MLM sales in the U.S. In fact the items she listed are considered “suspicious” by most seasoned Network Marketers or Party Plan Operators.
WRONG: In MLM, the participant always gains from their investment. The catch is in the value of the product that the participant receives. This is the reason that MLM is so big on the internet. Because, information can have a monetary value, and it cost the distributor nothing. So ebooks, software, newsletters…etc… these are the most common products used in MLM. MLMers have added tangible products as well, and home products were the first to use MLM as a primary marketing strategy.
The Forced Matrix: The writer needs to buy a good complan book like the one written by Rod Cook, xxxxxxxxxxxxxx <name book, see Amazon Books, A Forced Matrix mathematically a building a compensation plan means a form with “no spaces.” This type of Compensation plan is “a dog”. Legitimate companies using it usually die between 8 and 14 months. It doesn’t help anyone and hurts the reputation of the Good MLM – Netowork Marketing companies. Rod Cook calls the “Forced Matrix” a “Death Box” with limited width and limited Depth. The better plan this person is trying to describe is the Uni-level that has no relation to a matrix pay plan. See http://www.mlmconsultant.com/compensation_plan.htm
WRONG FORCED MATRIX = A DEATH BOX: With so many MLM programs on the market these days, originators have tried to make their programs more desirable than others. Hence the forced matrix idea. In a regular MLM program, your monetary gains are based entirely on how good you are at marketing the program. However, most people arent’ very good. Basically, if the number of people who can join under you is limited in any way…then it’s a forced matrix. The idea being, anyone else you refer extra.. will go under someone else.
See below! Benefits are not equal. With a Matrix your future is going to die with the pay plan. The “regular” MLM she is trying to address is the Unilevel first used by Watchers in 1937. Watchers is still operating so that gives a big hint on the stable Unilevel (Uni-level) Compensation Plan to start with.
WRONG FORCED MATRIX = A DEATH BOX: The benefits of either are about equal. With a forced matrix, you stand to earn an income faster, but increases in income are slower because your referrals get forced further down the line from you. With regular MLM you have a stronger base, and sustaining it is generally easier…but first profits can be slow. If you want a little income faster, go with a forced matrix. If you want BIG profits and are willing to work a long time for it, go with regular MLM programs.
The Lady that wrote this article originally does not seem to be a criminal, but having written and tried to get the truth out about our great MLM Industry Anna-Marie Stewart Venton really put my teeth on edge, and forced me to write this article correcting her errors because they would hurt someone.
Rod Cook
