Just a friendly reminder from your friendly #antiMLM/anti-scam spokesperson:
The Secret Sister Gift Exchange thing that makes the rounds every year is a pyramid scheme/scam (and ILLEGAL) and you shouldn’t participate in them. -- according to the BBB, and me.
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🟢CC Suarez\"s video regarding the Secret Sister Gift Exchange:
…and your friend’s #MLM "business" may be looking for recruits saying it’s a "business opportunity" to become a "boss babe" under the guise of financial freedom -- just in time for the holidays. ...how convenient. <insert eye roll here>
MLM is short for multilevel marketing. They also call it "network marketing", "referral marketing" or "direct sales".
Look for verbiage like "work from wifi", "work from your phone", "join my team", "you can work in pockets of time", or my personal favorite "become your own boss" (spoiler alert..."being your own boss" is not a thing as everyone works under somebody else making them -- the up line -- money). These are dead giveaways as well as the over use of emojis in every sentence.
🔴 MLM\"s are NOT the same thing as the business hierarchy as they will claim that "corporate America is the biggest pyramid scheme" -- uh, no. that\"s the business hierarchy, and not the same thing at all. The higher ups don\"t make a cut off of the other employees salaries, that\"s just not a thing. Also, these MLM companies also have corporate offices...so make that argument make sense...haha
🔴 They are also NOT the same thing as affiliate marketing. With affiliate marketing, a company gives an individual a link that has a discount attached to it to give their friends/followers/whoever they want for anyone who clicks on that link. Whatever is purchased, the individual the code belongs to will get a commission off of that sale -- they aren\"t having to recruit others under them, and then also making a cut off of their commissions like MLMs.
MLMs are basically "legal" pyramid schemes/scams that only makes their up line (the people "above them" in the triangular structure of the company *ahem* pyramid...) money, and that money is mostly made on recruiting and NOT sales. The only thing keeping them from being considered an illegal pyramid scheme is the fact that they have a product...but the main source of income for these people is RECRUITING. Over 90% of people will lose money and can be seen on their income disclosure statements provided on their websites -- or a flash at the end of an IG or FB stories video -- don’t fall for them.
🔴 Side note …I’m aware some of people on my friends list are involved in these things or use their products. My problem isn’t with the person involved in these companies — MOST of the time — but with the business model and predatory behavior they have when trying to rope new people in. If you\"re curious, the FTC has an extensive document on MLMs:
Think about it... when was the last time you heard someone who is in an MLM have their story start off with "I was in such a great financial place I had to join," or "I loved my job so much that I decided to do this side gig too,"?
Never. They’re always in debt, or are a single parent (usually mother cause they love to go after other women), college student, basically anyone who would be strapped for cash and potentially desperate for any form of income.
Examples of MLMs are:
#BeachBody, #Monat, #ColorStreet #Plexxus, #Amway, #Younique, #Scentsy, #MaryKay, #Arbonne, #Kyani, #NuSkin, #PamperedChef, #PureRomance, and #ItWorks... just to name a few.
You can type in a company here to see if you\"re curious if it\"s an MLM or not …cause there are a TON out there:
Remember, if you have to pay in to join a company, (the "starter packages" that are easily $99+) it’s a scam — and don’t confuse a pyramid scheme with the business hierarchy. They are not the same thing.
-Whitney