eathnews wrote: - Try It Before You Buy It !

- Have Your Downline Built BEFORE You Spend Any Money ! ************** DO YOUR DUE DILIGENCE BEFORE YOU INVEST **************

First you need to understand the simple numbers:

The "pyramid" scheme is essentially a business variation of the familiar "chain letter", no matter what someone may tell you. It works this way:

Month Participants ----- ------------ 1 6 2 36 3 216 4 1,296 5 7,776 6 46,656 7 279,936 8 1,679,616 9 10,077,696 10 60,466,176 11 362,797,056 (Exceeding US Population) 12 2,176,782,336 13 13,060,694,016 (Exceeding World Population)

Why are there so many matrixes? The answer to this question is to confuse you. To prove the point; ask the individuals of various programs to explain their compensation matrix to you. Most of them can not state what they were told, this happens because it's all babble meaningless information and not being able to give a logical rational answer, they will usually say the computer will take care of that aspect of their business for them.

The primary question here is; Why create a complicated matrix to pay commissions? Why not just go into business, and sell your products as do other legal businesses do? Well the answer is to CONFOUND, CONFUSE the investor. And eventually take the investors money.

It uses the art of babble to appear to help the investor. Even legal industries use these techniques, for example:

o You have gone to the supermarket, only to find the products have all been rearrange d on different isles. Does this action help the people going grocery shopping? NO! o The management usually a notice saying "Please bare with us, We are changing to better serve you!" The shuffle is done to keep you in the store longer viewing products you did not come to purchase.

All programs have compensation matrixes some are distributor profitable but all are company profitable.

In order for the company to exist the company must make money. However, many companies have a matrix and compensation plan designed that only the first 25 or so will make a lot of money.

Other companies have their program designed so the distributor must continue to make direct sales to make a lot of money.

And some programs make most of their money off their overpriced kits. The kits are extremely important to companies. Why do you think the kits are so important to the company? The kits are instant Money to the company. The revenue generated by kit sales is not paid out in commissions to the distributors nor are the business tools. Shipping products is still another way an company can make money. There are many companies that require a certain amount of money to ship any product to the distributors far above the price of normal shipping charges for the same weight.

Downline building organizations, they ultimately will inherently fail. This is due to the natural geometric progression of a matrix and the sheer numbers required to feed each associate of that matrix an associate. (AS NOTED AT THE BEGINNING OF THIS TEXT) Once the numbers get so large say 200 associates. The next month the downline building organization must produce 200 associates for the previous 200 and the next month 400, next 800. As you can see a downline building organization will only work well with in the first 200 people. They are usually guises to build a shifty characters downline. His downline does get built and as for the rest of the people, well, good luck!

These downline organizations disappear quickly as they appear, and 99% of them with one goal in common which is to build the owners downline only. Downline building organizations also commonly charge for their services regardless of how the associates came to be associates and promise to put people under you which rarely happens.

Then there are the "Mailing Lists" (as sold in the industry). 99% of these are also scams. The catch is all the companies charge for the same list of people in a given year. These lists are obtained by getting a huge downline report of say 50,000 names from an company either by paying off an informant (thief) in the company, or an actual downline report of an associate with thousands of people in their downline. When you think about it is kind of stupid to pay for the same list with the same names that the next guy is going to pay for.

The "Matrixes". There are forced & unforced period! However, if worked correctly any matrix can be built as a forced matrix. There is what many believe not to be a matrix and is called a binary. It looks just like a matrix because it's a matrix.

o Forced Matrix: The matrix is only as good as the product and the compensation plan. In other words a forced matrix selling broken rubber bands is not going to sell very much product at $20.00 a rubber band at 50% commission. In other words: In most of these schemes the investor is told they are buying the product at wholesale, when in fact they are buying at full retail (or higher), and told to sell at retail/list price. This list price is usually two times retail. How long can the investor continue before the customers find out they have been legally ripped off. o Unforced Matrix: One major problem with this is someone recruits someone who recruits someone who does not recruit. The forced matrix helps this problem but not nearly enough to be successful. o Binary Matrix: Hundreds of thousands of dollars will be lost due to this "non matrix" as promoters like to call this MATRIX. There is virtually no help from the upline on the weak leg. In order to make any money both legs must match. Therefore, the distributor only gets paid on the weakest leg. These programs often get many people to join in a single day or week. The promoters will say something like "By the end of the week we will have 10 people under you" The distributor checks back in a week and sure enough there are 15 people under them but none on the weak leg why? If and when the distributor figures out there is no money to be made in the program without building the weak leg the individual that got them into the program is making thousands of dollars.

It works like this:

The promoter has three business centers. The promoter only opens the left and right business center. The promoter tells both left and right legs the same story about putting 10 people under them by the end of the day. You see the promoter builds both legs. The promoter does not have a weak leg! It does not ever benefit the promoter to build an individuals weak leg. The only reason the 10 people were put under you in the first place was not for your benefit but the promoters . These promoters can and do switch programs once a month. Why? usually the people that joined realize by the end of the second month there is no money to be made but little do they know the promoter might have made as much as $50,000 dollars that month. The question becomes us what if I planned on building my weak leg as well. Then you would be a promoter and not a distributor. There are two reasons people mainly get involved in . They are #1 to work hard and build a lasting downline. #2 to get under someone that is working hard to build their downline for them. The binary matrix eliminates the possibility of #2 making any money. Therefore the very people that are looking for #2 get into the program on the premise of the 10 people in a week thus building the downline of the promoter but the promoter knows FOOL well that #2 will not make any money because he does not intend to work the program.

Another scam is where about 5000 people are rounded up and ran through an engine of a matrix. The people at the top, usually the first 25 make all the money in a single month. However the promoters then reverse the matrix and run the 5000 people through another program. The people are led to believe the people at the bottom will make all the money the second go round.

o Lets take a closer look. We will use a 5X5 matrix for the example. Top 0 = 1 Level 1 = 5 creators Level 2 = 25 creators friends Level 3 = 125 suckers Level 4 = 625 suckers Level 5 = 3119 suckers + 6 creators

In the first go round who will make money. The creators and the creators friends. In the second month, the second program who will make money. If you think the people at the bottom, think again. We can quickly see this is a suckers by asking the question which one of the 3119 suckers will be at the top and then which thirty of the 3000+ will be on level two. You see the only people to make any money in both runs of the downline must be on level 1 or 2 in and that is only 31 people out of 3906 people.

REPORT FRAUD TO: National Fraud Information Center EMail: fraudi@psinet.com Telephone: (800) 876-7060 (For U.S. and Canada) --------------------------------------------------------------------- ************** DO YOUR DUE DILIGENCE BEFORE YOU INVEST **************