The Disgusting Nature of MLM or Pyramid Schemes

MLM or Pyramid schemes are not necessarily illegal, as long as they don’t do anything illegal. Multi level marketing is a legitimate marketing method, while nothing illegal is done in it. However, being legal doesn’t mean they are good. Indeed, they are so disgusting. They create hate and hostility. None of them ends with happiness. They all get shut down after causing too many people to lose. Any time that you think a new MLM or Pyramid program is good, you will become regretful. In this post, I will explain why they are disgusting and why you must avoid them, no matter if they make you lots of money.

I have lots of experiences with this. Now I know so many things that I didn’t know even 5 years ago, although I have been working online almost since 2001. The first MLM/Pyramid program I joined was by a good and legitimate American company that is still working. Indeed, it is the most successful MLM/Pyramid program that I have ever seen. I think I joined them in 2002. They sold physical products with an MLM/Pyramid marketing system. That’s why they were legal, because offering physical products that become promoted through an MLM/Pyramid system, makes their program legal, even when they charge a membership fee. An MLM/Pyramid scheme is illegal when there is no real product, and so the company’s only source of income is the membership fees. I worked with that company for about a year, until I learned that I could make a lot more money by spending the same time on other programs.

That was almost the last MLM/Pyramid program that I joined, until about five years ago that I joined a program that was (and still is) called Karatbars. They also offered a physical product that was indeed 24 karat physical gold. So, they were legitimate too. However, while they were doing really well selling physical gold, they got greedy and changed their focus to cryptos while they had no knowledge and experience in that sector. Some crooks and international fraudsters joined their team, stole everything and ruined the company. A company that was doing good, turned into a scam because it stopped paying the members and delivering the orders.

I joined another MLM/Pyramid scheme that also looked good and had been doing good, until April 2022 that I think they lost all their funds in the crypto market, and so they stopped paying the members. Therefore, now they are also known as one of the biggest international scams. To know about this program, and also my story with them, you can refer to the articles below:

But, why do I say that MLM/Pyramid programs have a disgusting nature?

Although they can be legal, they are still disgusting. The main reason is that, in order to make money with them, members have to refer, recruit and generate sales. They have to refer other people to the program and build their teams. Here is where two problems will raise:

Those who cannot refer and recruit will only pay membership fees while they make no money. So, they will only lose money, and the money they lose is the source of the money that is paid to the team-builders who can refer and recruit to build their teams. Those who lose, will hate those who make (uplines) because they do know that it is their money that is being paid to the uplines.

The other problem can be seen among teambuilders. As they all promote the same program on the Internet, especially on social media, they are each others’ competitors, and so they hate each other too. They know that a member that had been referred by another teambuilder, could be referred by them if they had found them sooner. It is not only that. Sometimes they join other team-builders’ social media pages and groups and try to steal their prospects and refer them to the program.

In general, MLM/Pyramid programs generate hatred and hostility on the Internet and among people. Even when a program stops working, many teambuilders join another MLM/Pyramid program. It is when many of them refer the referrals of the previous program’s downlines to the new program. It means, they steal the previous program’s referrals of their referrals and take them to a new program, before their referrals of the previous program join the new program.

For example, John joins program A and then he refers me to the program, and then I refer Mary. Then, program A stops working, and so John joins program B. Then, he contacts Mary, without me knowing anything about, and refers Mary to program B, while Mary is my referral and prospect, and it is my right to refer her to program B.

But, the MLM/Pyramid teambuilders learn not to pay any attention to morals. They think about making more money out of other people’s efforts. I have seen such immorality among the HyperVerse team-builders and leaders. Once HyperVerse stopped working, they joined other MLM/Pyramid programs, that are all scams, and then they stole their HyperVerse downlines’ referrals and took them to the new MLM/Pyramid they joined.

Ethics have no place in MLM/Pyramid programs, although some of them are legal. They turn people into vampires and bandits. Your uplines who have made lots of money from your efforts and referrals in program A, will steal your referrals to take them to program B to make more money there. Chinese and crypto-related MLM/Pyramid/Ponzi schemes, especially in the past 5 years, have turned millions of naive people into international scams and fraudsters. They are stealing from people around the world, while many of them don’t know. Of course some of them who are experienced networkers that have been working with MLM/Pyramid/Ponzi schemes for decades, know this very well. They jump from one program to another to scam a few thousands around the world in each program.

No Referring/Recruiting

Because of the immoral atmosphere and unhealthy competition that referral programs create among members, I never agreed to have such a disgusting feature in The LuckScout Community. Our members make money without having to refer, recruit and generate sales, although so many wanted to convince me to have a referring or affiliate system in The LuckScout Community too. Instead of having such a disgusting feature, we have created a modern type of affiliate system in The LuckScout Community: The Modern Form of Affiliate System

Maybe we could grow our community a lot faster by rewarding our members for referring others to the community. But, we never agreed to do it, because we didn’t want our members to compete with each other, and the immorality that I talked about above spreads among our members too.

The LuckScout Community is where we serve humanity. It is a community that wants to turn all members into independent and self-sufficient wealth-builders who are financially free. It is not a place to force the members to make money at whatever it takes, and through ignoring the humanity values. MLM/Pyramid/Ponzi schemes, especially the new ones that are based on cryptos, are a disgrace of humanity. They turn people into monsters who know no boundaries. Avoid them!

This video explains how our system works:

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By Vahid Chaychi

To learn more about me, please visit the about page.

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