This sounds like a scam?

@Drosophila (16694)
Ireland
September 11, 2016 1:51pm CST
A friend called me up to tell me "about this wonderful business opportunity". As it turns out, she's selling household products to family and friends from a catalogue, and each time they buy from her.. she get's points that can be redeemed for $$$ later on. Now, she's also recruiting friends & family to "grow" her business, it's like $75 for a setup. She gets like 750 points for referral, which she then can redeem for $$$ later on. All this sounds like a shady scheme to me? Especially when I hear the shampoo from this catalogue is like $10-20... I mean eh-hum! Does this sound like a scam to you?
24 people like this
31 responses
@Susan2015 (22159)
• United States
11 Sep 16
It reminds me of the Amway setup many years ago. The recruiting part doesn't sound all that good.
6 people like this
@andriaperry (63321)
• Anniston, Alabama
11 Sep 16
That`s the name, I could not think of it!
2 people like this
@Drosophila (16694)
• Ireland
12 Sep 16
@susan2015 yes, Amway! My friend was clear it's not Amway but sounds like it huh!
1 person likes this
@Drosophila (16694)
• Ireland
12 Sep 16
@coffeebreakwhatever ya I don't see how I can sell any to friends without losing them
@akalinus (22837)
• United States
11 Sep 16
It sounds like multiple level marketing. Each person's earnings depend on the success of others below her. I was involved in a scheme like that to sell OTC meds, spices, and other household stuff. Everything got so expensive that no one would buy it. People who start the MLMs get rich. Those underneath work for pennies. Be warned.
4 people like this
@Mike197602 (13955)
• United Kingdom
11 Sep 16
I got involved in a utilities mlm...the starters are now millionaires...I made a bit but gave up. MLM's can be good but they have to have a product that truly competes in the marketplace. Often they don't as you normally have to buy in and you've an upline to pay.
3 people like this
@akalinus (22837)
• United States
11 Sep 16
@Mike197602 That is how it works. I stood around bored stiff at flea markets trying to sell stuff. Also, went to the old folk's home. A lot of them bought the stuff when younger and had favorite products and stories to tell. I listened and collected money.
2 people like this
@Drosophila (16694)
• Ireland
12 Sep 16
@akalinus ya, I don't have any inclination to harass family and friends to buy over prices shampoo
1 person likes this
@moffittjc (47309)
• Gainesville, Florida
14 Sep 16
It's not necessarily a scam, but one of those legitimate pyramid businesses. What keeps the business growing and it's members earning money if by them recruiting more people to work under them. The more people you recruit to work under you, the higher up the pyramid you go!
3 people like this
@Drosophila (16694)
• Ireland
17 Sep 16
pyramid scheme is "illegal" in some EU countries such as Denmark
1 person likes this
@moffittjc (47309)
• Gainesville, Florida
18 Sep 16
@Drosophila Pyramid schemes are illegal in many countries. But there are legitimate pyramid businesses that are not illegal. These businesses aren't scams, they're just built around a business model based on a pyramid structure. There is a difference between the legitimate businesses, and the scams, but not much! lol
3 people like this
@vandana7 (68972)
• India
18 Sep 16
@moffittjc .. They are illegal because they increase the price of product being sold to us ...after all, the sales person has to recover her monies....customer eventually gets lesser and lesser for monies worth.
3 people like this
@MALUSE (45779)
• Uzbekistan
11 Sep 16
This is called snowball or pyramid system. From Wikipedia (send the link to your friend):
From Wikipedia, the free encyclopedia Jump to: navigation, search This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (January
3 people like this
@Drosophila (16694)
• Ireland
12 Sep 16
I can surely see similarities
@Mike197602 (13955)
• United Kingdom
11 Sep 16
What's all this "like" business...have you turned into a valley girl Turned into $ later on, what's all that about? Any "business opportunity" that charges in this sort of way is suspect in my opinion....$10-20 for shampoo is a lot and I can't see it taking off when you can get well known brands for way less.
2 people like this
@akalinus (22837)
• United States
11 Sep 16
When I sold products, nobody wanted to pay $9 a bottle for shampoo after they opened a dollar store.
3 people like this
@Mike197602 (13955)
• United Kingdom
11 Sep 16
@akalinus that's true. I had a couple of sites where I sold products but the sites were mine and I bought and shipped my own products...I made over £20,000 from one but that was over 8 months and when others got in on the act I gave up. But I think I may be going to make another site to sell things in the future.
@akalinus (22837)
• United States
11 Sep 16
@Mike197602 What did you sell? It must have been better than cucumber salt and $9 bottles of shampoo.
2 people like this
@WorDazza (10089)
• Manchester, England
12 Sep 16
Pyramid selling. Avoid like the plague!!! You usually have to buy products off the company in order to sell them. If you can't sell them then you ain't getting your money back! Only people at the very top of the pyramid (i.e. the very early participants) ever make any money out of these schemes.
2 people like this
@Drosophila (16694)
• Ireland
17 Sep 16
ya that's what I thought, you kinda stuck with the product, if you can't sell it off
1 person likes this
@WorDazza (10089)
• Manchester, England
19 Sep 16
@Drosophila I'm just amazed that a) people are still operating these things and b) people are still falling for it. I suppose some people can't resist the, usually empty, promise of a an easy way to make money and as long as you have plenty of category b) people you're going to find lots of category a).
2 people like this
@Drosophila (16694)
• Ireland
19 Sep 16
@WorDazza its apparently very big in India.. almost every brand does it? so a poster below says, whereas this kinda thing is illegal in nordic countries, so I guess you have the spectrum of 2 possibilities in betweet
1 person likes this
@jaboUK (55158)
• United Kingdom
11 Sep 16
Scam or not, I wouldn't touch it with a barge pole.
2 people like this
@Drosophila (16694)
• Ireland
12 Sep 16
Very wise, I certainly wasn't going to buy any product
1 person likes this
@marguicha (105886)
• Chile
11 Sep 16
I have seen lots of these things throughout my life. It seems that the forst people who get into it earn some money if they know when to leave.
2 people like this
@Drosophila (16694)
• Ireland
12 Sep 16
Ya I guess once you're roped in, you're kinda stuck
@Happy2BeMe (75441)
• Canada
11 Sep 16
It is one of those pyramid scams. She will never make money on it. They make it sound easy but I would call it a scam.
2 people like this
@Drosophila (16694)
• Ireland
12 Sep 16
I think so! All I heard are money going out.. Yet to hear the raking in bit
1 person likes this
@egdcltd (7191)
11 Sep 16
Might be a legitimate network marketing company, might not. What's it called?
1 person likes this
@Drosophila (16694)
• Ireland
12 Sep 16
I can't recall the exact name, something like direct sales? It sounded like a lot of harassing family and friends, as it doesn't particularly ask you to go door to door but sell to your "network". My network of people are for proper ligitmate work/businesses, am pretty sure they'd block me if I start flogging them shampoos lol
2 people like this
@egdcltd (7191)
12 Sep 16
@Drosophila That's often the biggest problem with MLM companies; getting other people to join without alienating all your existing friends and contacts!
2 people like this
@egdcltd (7191)
12 Sep 16
@akalinus I'd like to use the internet with an automated system to do it. I have heard of people being successful that way.
1 person likes this
@just4him (132075)
• Green Bay, Wisconsin
14 Sep 16
It depends on the catalogue she's using. If it's a catalogue that can only be used by the person selling the products, then it's not really a scam, but it is a pyramid program, and the person at the top is the one who makes the most on those kinds of schemes. The person on the bottom rarely makes enough to survive on. However, if she's selling out of a catalogue anyone can order from, then yes, that would be a scam.
1 person likes this
@Drosophila (16694)
• Ireland
17 Sep 16
ah I see what ya mean.. I don't think anyone can get a catalogue no
1 person likes this
@just4him (132075)
• Green Bay, Wisconsin
20 Sep 16
@Drosophila Then it's probably not a scam but a pyramid scheme.
1 person likes this
@Drosophila (16694)
• Ireland
20 Sep 16
@just4him which is illegal in some EU countries.
1 person likes this
@msiduri (5732)
• United States
12 Sep 16
It's not so much a scam, but your costs are all up front. And unless you're very lucky, it will be a long time before you recoup your ante. And you'll be leaning on the people you recruit. In short, it's a mess.
1 person likes this
@Drosophila (16694)
• Ireland
12 Sep 16
Ya, I think you pay the $75 then need to buy the product you sell. Before you sell onto another person. It sounds like more loss of money. The point thing sounds fishy, who do you claim the $$ from is not clear too. My question was if everyone buys the product for x price, where does the points come from and how is that a profit?
1 person likes this
@msiduri (5732)
• United States
12 Sep 16
@Drosophila Yes. What your friend will be doing is supporting the people above her and counting on the people below her to support her.
1 person likes this
@akalinus (22837)
• United States
12 Sep 16
Yes, I had trouble signing people up and they did not do much after that.
1 person likes this
@miniam (9228)
• Bern, Switzerland
12 Sep 16
Not really scam(must not be) but sounds like MLM. Be careful if you decide to invest money,you will have to pester family and friends to buy from you and then they will have to pester someone else to buy from them,you can only make money if your referrals make money and the circle goes on. And as you have already seen these products are usually very expensive,$12 for a shampoo,well you will have to know people with money to invest. Ii`s not a good model of business
1 person likes this
@Bluedoll (17039)
• Canada
13 Sep 16
What is your comment for this response?
2 people like this
@Drosophila (16694)
• Ireland
17 Sep 16
@miniam (8502) no it sure doesn't like a good practice, and I didn't buy the product from my friend either
1 person likes this
@miniam (9228)
• Bern, Switzerland
17 Sep 16
@Drosophila Wise decision,you buy once,she keeps pestering you to buy more because her upline is putting pressure on her to sell as many as possible so the upline can make money.
1 person likes this
@MattMeng (3293)
• Hangzhou, China
12 Sep 16
We can't earn money so easy.
1 person likes this
@Drosophila (16694)
• Ireland
17 Sep 16
a very very wise observation
1 person likes this
@MattMeng (3293)
• Hangzhou, China
18 Sep 16
@Drosophila Money is difficult to earn, but rather easy to pay.
1 person likes this
@Drosophila (16694)
• Ireland
18 Sep 16
@MattMeng indeed, even scams are difficult these days lol
1 person likes this
@nilesh1s (67)
• Rajkot, India
12 Sep 16
there's nothing fishy about it. This is the recent marketing trend. Here, in India we got almost every second brand doing this stuff, it's genuine 100% but really troublesome or rather I should say it's a lot of work. They "reward" you which isn't much. My cousin is a member of Amway scheme and even after reaching the "diamond" membership she doesn't get much.
1 person likes this
@Drosophila (16694)
• Ireland
17 Sep 16
In some countries in EU.. this pyramid scheme is considered illegal and a scam.. Amway and such like is banned
@Bluedoll (17039)
• Canada
17 Sep 16
@Drosophila wow didn't know that. Amway is banned interesting.
1 person likes this
• Jacksonville, Florida
11 Sep 16
I would not necessarily call it a scam. It could be, but maybe it is not. Shampoo's at that price is reasonable, if they are from a designer brand. I have seen shampoo's way more expensive than that... Where I would have a problem, is receiving points, instead of dollars right away. My suggestion would be to try to talk to people who have actually gotten paid for those points. Ask them how long it took before they got paid. Did they have any trouble getting the amount they believed they were to be paid. Stuff like that...
1 person likes this
@Drosophila (16694)
• Ireland
12 Sep 16
No this is their own brand shampoo. To be honest it sounded like you pay $75 then have to buy products from your up line. As far as I can tell, it's only costing money not making money
• Jacksonville, Florida
12 Sep 16
@Drosophila _then I would not do it.
1 person likes this
@Drosophila (16694)
• Ireland
17 Sep 16
@teresatrotter that's my thought..
@Gillygirl (17623)
• Sutton, England
17 Sep 16
Yes this sound like pyramid selling. Someone tried to get me hooked up with a company called Amay once.. They used the same techniques that you have described.
1 person likes this
@Drosophila (16694)
• Ireland
17 Sep 16
Amway is known as a scam in USA i think
1 person likes this
@Gillygirl (17623)
• Sutton, England
23 Sep 16
@Drosophila Yes, I think I heard that too.
1 person likes this
@Bluedoll (17039)
• Canada
13 Sep 16
Depends on the company. With the right company if you can sell like an active salesperson you can make money. I can't seem to sell like an active salesperson.
1 person likes this
@Drosophila (16694)
• Ireland
17 Sep 16
I don't think I can harass my peeps none stop no
@Bluedoll (17039)
• Canada
17 Sep 16
wouldn't want to do that nope not for me.
1 person likes this
@JESSY3236 (7730)
• United States
19 Sep 16
it's a MLM company probably. Beachbody is another one of those types and I thought about doing it, but when I really looked in the company itself, it sounded like bad news. there is another MLM company that sells weight loss wraps.
1 person likes this
@Drosophila (16694)
• Ireland
19 Sep 16
indeed, and after tax.. really got negative left
1 person likes this
@shivamani10 (11170)
• Hyderabad, India
17 Sep 16
It is not a scam. But this is a scheme. Here in India also ladies will be selling articles and get their commission. If we bargain they simply say that they have to forego something from their commission. So I am not allowing them . I do not want a share in their commission.
1 person likes this
@Drosophila (16694)
• Ireland
17 Sep 16
ya, it sounds like one of these things.