Network Marketing – Ponzi scam or genuine home based business?
January 11th 2012 Posted at Beauty
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The Telegraph Digital Headlines dated 20.7.09 tell us all that “Celebrities lose out in ‘British Bernie Madoff Ponzi fraud.”It reports that more than 600 people have lost, in some cases, huge amount of money in an alleged scam by British Consulting International (BCI), including a household name 1960′s pop star and other well-known figures. They say that “The fraudsters behind the conspiracy are said to have used their business connections to target wealthy names in the sports, music and finance industries, although people with modest incomes have also lost out. Like Madoff, the conmen “befriended and groomed” their victims, many of whom recommend friends and family join the scheme.” So how is it that people can be taken in by such schemes? Why is it that people are so gullible when faced with a seeming ‘get ric collagen capsules h quick’ proposal? Is it greed, or are the Bernie Madoff’s (who was recently jailed for 150 years for orchestrating a 39.5bn fraud) so clever that they can weave a tale that will fool most people? To the Network Marketer, the hallmarks of a scam are all too apparent. For instance, in this recent alleged Ponzi fraud, the Telegraph reports that “According to police, BCI and connected companies offered returns of between six and 13 per cent a month, claiming that the tempting dividends were generated by lending money to struggling firms who were willing to pay high rates of interest. In reality the monthly payouts were funded by the original investments. The con men used the rest of the capital to fund lavish purchases including a fleet of luxury cars, it is alleged.” Network marketing simply doesn’t work this way.