Gullible suburban mother of four regularly duped in her half-century life. Exploring hoaxes and schemes as the ExSCAMiner, she attempts answering the nagging question: Should I have fallen for that? Got scam tips, email Karin at ScamExaminer@gmail.com.

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Multi-level marketing

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Scam Examiner

Showing entries for Category: suspicion

Multi-level marketing line of defense

2 Comments

POSTED July 16, 1:09 PM

Karin Malchow - Scam Examiner

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www.sec.gov

Multi-level marketing is a difficult scam topic since many versions exist, some skirting legality's fringe. Also, those involved will fervently defend them.

At best, the business design of earning commission from both your product sales and the sales of those you recruit benefits a very small percentage of ambitious super-salesmen, primarily those beginning early with the company.

In the middle range, buyers who regularly purchase a specialized product receive a discount after a small buy-in, not losing much without actively recruiting or selling.

At worst, an MLM is a pyramid scheme, where offering a negligible product disguises that income mainly depends on fees from new recruits, making profits an exponential impossibility for late-comers.

Because of MLM risks, scrutiny is essential. Apparently, an internet MLM company, ShopToEarn, disagrees. Their attorney recently sent cease-and-desist letters to several bloggers questioning the company.

Here is a link to forensic accountant Tracy Coenen's analysis of the internet shopping rebate company; an article which initiated legal threats.

The Scam Examiner's opinion: Any company attempting to shut down investigation is worthy of suspicion.

For more info: The FTC provides guidelines for analyzing MLMs.

Topics: suspicion , Multi-level marketing , pyramid scheme

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READ 2 COMMENTS:

Find the scammer

0 Comments

POSTED June 9, 9:13 PM

Karin Malchow - Scam Examiner

If anyone checks out website message boards discussing scams, you'll see it gets confusing. First, suspicious scammer advertising pops up on some sites. Second, after an inquiry or complaint about a potential scam, a glowing recommendation... Read More
Topics: suspicion , message boards , websites about scams

Religion or cult or scam?

0 Comments

POSTED May 19, 8:43 PM

Karin Malchow - Scam Examiner

Scammers sometimes manipulate established religious beliefs, but when does a purported religious group become a scam? A difficult question, eliciting answers ranging from "The concept of organized spirituality is a scam" to "What... Read More
Topics: suspicion , religion , cults

Suspicious minds

0 Comments

POSTED May 2, 8:37 AM

Karin Malchow - Scam Examiner

Conspiracy theories. Aren't they really about people feeling scammed, taken for a ride, fed a line? The Big Guy (Government or other conglomerates*) putting one over on the Little Guy? Conspiracy theories ebb and flow, based on the current... Read More
Topics: Conspiracy theories , suspicion