Pyramids of Fortune?
Thinking of joining a multilevel marketing program to make some extra money? Before diving in, make sure you’re not dealing with a pyramid scheme. They’re illegal, and for good reason.
Today, the FTC announced a complaint against Fortune Hi-Tech Marketing, Inc. (FHTM) for scamming consumers out of $169 million. The FTC alleged that the company operated an illegal pyramid scheme disguised as a multilevel marketing program, and claimed that anyone who joined could earn a substantial income. But the FTC investigators found that more than 90% of all the members earned less than $15 in a year. Most folks actually paid more to join FHTM than they earned.
What about all the rags-to-riches stories the company promotes? Only true for a few at the top tier. In fact, the FTC charged, the company structured its business in a way that guarantees most people who join would lose money. The compensation plan is confusing, and commissions on product sales are very small. There’s no training on how to sell the products — things you might be familiar with and can buy elsewhere — like subscriptions to DISH Network, cell phone services, or dietary supplements. According to the FTC, the only way to make any money working for FHTM is to recruit other employees.
So what’s the bottom line for you? If you’re planning to buy into a multilevel marketing plan, get the details:
- If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is mainly based on the number of people you recruit and your sales to them, it’s a pyramid scheme.
- Even if a company sells products or services you’re familiar with — or boasts celebrity members — they may not be legitimate.
- Don’t be fooled by rags-to-riches stories or portrayals of lavish lifestyles made possible by joining the program. These stories may not represent the experiences of most members.
Comments
Can you look into the site bidsthatgive.com. Looks like a similar pyramid scheme site
If you'd like the FTC to look into a company's practices, please file a complaint at ftc.gov/complaint. We use your complaints to investigate companies and bring lawsuits. We can't address complaints if they are submitted through blog comments.
Perhaps the worst pyramid sompany is Mannatech (MTEX) was sued by the Teaxs a=Atorney Genreal but still in business. Right now they owe back taxes to the IRS, but has avoided paying some due to staute of liitations. Then FTC needs to close them down for good
Please look into 2010 Blessings .com My minister invited me to join.
I was taken in by the lies & hype at FHTM, is there anyway to recover our losses?
I'm in Consumers Ed reading this lol
What is known about "Fun & Fuel Promotions" in Encino CA
Can you give an opinion on Nerium
Can you please look at www.aaapenyauction.com and tell me if the "opportunity" tab material would
be a good investment
Alert: Paul Orberson is at it again. As of 2/15/2013 He joined up with Zija as a rep and is said to have been brought in as one of the new top dogs of that pyramid and is signing up thousands of people for $1.00 with a company named: Zija.
Please check Seacret HQ. High pressure to join them; two weeks later I returned unopened agent starter kit. Was charged $60 and will not be reimbursed.
Hello, this is very good article what have you here.
I´d like to ask if you anyone hear about this -->
www.bannersbroker.com
It seems very unreal. They promise fortune for everybody. But everybody with common sense will have doubts..
I think this is another sophistical pyramid system. I know personally few people and they are completely "brainwashed" from this company.
Please give me some answer about this company and i will spread it out to the people.
Thank you.
Please check into the company MyCovenantLove.com. I really like the Idea of this company but I hope that its not a scam.You 50.00 per month as membership and bring 7 people. They bring 7 people so forth and so on. In return they are promising to share 1/2 of their wealth with you by paying your following bills monthly as you bring members they will pay cell phone bill up to 25.00,electric bill 300.00, gas bill 100.00,water 50.00,rent 1k, car allowance 800.00, medical and dental 2k per month. Your commissions are paid by their Bank of America account and your bills will be paid by their Wells Fargo account.
If you'd like the FTC to look into a company's practices, please file a complaint at ftc.gov/complaint. We use your complaints to investigate companies and bring lawsuits. We can't address complaints if they are submitted through blog comments.
I'm sobbing as i write this,I just realized I'm on the "sucker llist". I filed a complaint (FTC) and here is my senerio...
Paid $21,500 for business with marketing ads etc. never recieved the coaching to learn and take over to run while being launched.I was given a 300% return on my money within a 6 month garentee or refund would take place. I put the $21,500 on my credit cards. filed dispute,and credit card company is saying there's nothing they can do because I didn't dispute the charge within 90 or 120 days and that I gave merchant my card no. so it isn't considered fraud. I sent the cc companies an article found on (FTC)this site with the 1 of "INTERNET SOLUTIONS" other companies on the fraud list. Still the credit card companies refuse to do anything. Not one thing. What are my rights and laws for disputing a charge through the credit card company. Doesn't false pretense fall under the fraud catigory?
thanks SOS
I have read a lot about FHTM's structure, compensations etc. but nobody mentioned that a rep won't get paid unless the new recruiter get 3 points by ordering any of the products indorse by the company.
Former Fhtm rep who never expected a free lunch! There are no guarantees in business period! Business is risk... MLM is a chance to earn a little or a lot .. Depending on your work ethic... I made a lot...only because I was willing to work hard! It is a shame that those who expect something for nothing always blame others. When you are looking for a business to start.. It is your responsibility to research and get the facts! There is no guarantee at a job if you don't show up!! Fhtm was a great company with tremendous vision to help others who wanted more and were willing to work hard ... Not a FREE as so many expected! Should you expect a company to pay you for doing nothing??? Absolutely NOT! Most will tell you that they personally benefited greatly from this company!!!!!!!!!
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