Just wanted to give you folks a heads up on what the latested trend has been on ebay. Seems more expensive items are being used as a "gimmik" for a money making "matrix" program.

The ebay listing will say you can buy <u>*insert expensive product here*</u> for only $100 - and your bid is to a website URL where you can purchase this item for just $100. Well you really do get the item for $100, the problem is - you need to get 24 OTHER people to signup. And they need 24 in order to get theirs for $100 ETC. ETC. ETC. You must complete a 25 person "matrix" in order to get your item shipped to you.

So whats the big deal you say? Well im not a math whiz, but $100 x 25 = $2500 right? Well I sell these units for $2000 shipped - and if anyone brings me customers - I will give the person who referred me the customer 10% ($200) for each unit sold. Pretty fair deal, you bring me a customer buying a $2000 item - I give you $200 as a "thank you"... Well, that would mean you only need to bring in 10 people in order to get yours... and infact, 10 people would mean you get one for FREE, not even pay $100. So please be leary of these offers on ebay that seem too good to be true. Anyone looking to get things for cheap, could always contact myself or OTHER dealers/distributors to setup group buys between friends, which would end up being alot more beneficial to everybody vs. making this company a ton of money for all YOUR hard work.

BTW: I am not posting this as a way to solicit people to bring me sales - im just pointing out the scam, and a personal example as to why this really is not a deal at all. Seems cool and all, but what would be easier, finding 10 people - or finding 25? You could get 2.5 times more "free' before you even got your one item which you paid $100 for. Doesnt seem so good anymore does it?

 

Why is it a scam? Who is getting scammed?
You still get "expensive product for $100" (Thats whats listed as the title, so they didnt "scam" you.)

If you can provide a better deal, by all means list it on ebay. I would like to buy expensive products for cheaper.

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by sparq &raquo;</TD></TR><TR><TD CLASS="quote"> Anyone looking to get things for cheap, could always contact myself or OTHER dealers/distributors to setup group buys between friends, which would end up being alot more beneficial to everybody vs. making this company a ton of money for all YOUR hard work.
</TD></TR></TABLE>

Seems to me the person on ebay is doing what you just suggested a Group Buy.

 

It's a pyramid scheme.

Avoid it at the very real risk of losing $200 and pissing off any friend / coworker / neighbor who you convince to get into this under you.

Here is a good definition of pyramid scheme: "In generic form, a pyramid scheme is an organization in which the members obtain their monetary benefits primarily from the recruitment of new members rather than selling goods and services to the public. The main benefit of membership is the right to recruit others and to receive monetary compensation for doing so. Like any chain letter, a pyramid scheme is just a mechanism to transfer funds from one person to another…"

 

Exactly, its a "scam" because its a pyramid...

... and what products are you interested in? See the thing is not only do YOU have to be interested in it, but you will have to find others who will be interested as well if you want me to setup something like this. See if it were something maybe like $1150, and you just need yourself + one other person I would be happy to do that, but im not going to do something like that which would require OODLES of my own time.

 

Not really a pyramid scheme... Its called a group buy. But I gotta hand it to you, its not appropriate on Ebay IMO. Isn't against Ebay law to lead you to another website to buy anyways?

 

A group buy would be that you pay $x, and once a certain number of people have agreed to pay $x then everybody will get the item at that price.

This is a pyramid scheme because your paying $x depends solely upon your recruitment of new members.

Kind of reminds me of people telling me about the "gifting clubs" that were popular a few years ago, and why they weren't pyramid schemes (which they definately were). There was one around here that burned a lot of people for $2,000 each...


Modified by Heat at 9:43 PM 6/27/2003

 

Uhm. It IS a scam. There are lots of people who will never receive anything for their payment.

There obviously cannot be a 1-1 relationship betweeen people that pay and people that receive the item.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by dustin &raquo;</TD></TR><TR><TD CLASS="quote">Uhm. It IS a scam. There are lots of people who will never receive anything for their payment.

There obviously cannot be a 1-1 relationship betweeen people that pay and people that receive the item.</TD></TR></TABLE>
SEeeeeeeee I told you so... Dustin says so too!

 

Thanks for the heads up. I'd be pissed to bid on something then have to screw 24 people I knew to get it. That's fucked up

 

can you say "amway"