The latest witness evidence revealing the ugly truth lurking behind the pretty façade labelled, 'Multi-Level-Marketing,' is being gathered and broadcast by a courageous Texan, Alanda Carter.
This evidence again confirms that the 'Amway' racket continues to be operated behind parallel labyrinths of privately-controlled, apparently independent corporate structures. This criminogenic Mafia-style system has been designed to divert, and/or obstruct, investigation and isolate the billionaire bosses of 'Amway,' and their criminal associates, from liability.
I can publish this shocking analysis without any fear of being challenged, because the first person in any sort of official position whom I ever complained to about 'Amway' (and my family's delusional belief in 'MLM') was a senior UK Trading Standards officer (in my family's region, Yorkshire). This was way back in the mid-1990s.
I actually met with this person and spent several hours with her. She gave me all this time, because she could immediately understand why 'Amway/MLM' was a pyramid scheme.
At that time, even 'Amway's' own printed literature contained absurd income projections based on the number of recruits a participant acquired (and maintained) and on the number of further recruits these recruits acquired (and maintained), etc., ad infinitum.
My Ambot brother had even boasted to me that selling cleaning products to customers for 30% profit might be alright for some, but in the end it was a complete waste of time. In 'Amway' the really big money in 'MLM' came from exactly duplicating the Network leader's plan to achieve total financial freedom - buying about £100 worth of products each month and recruiting others to duplicate the same plan.
A light was switched on in the Trading Standards official's mind when she saw that the only real sales in 'Amway UK Ltd.' were to deluded people under contract to the company (like my brother) and who falsely believed that they could buy/recruit their way to wealth and freedom.
Even at this early stage, I saw how pyramids can be identified, but I had wrongly assumed that law enforcement agents were taught that pyramids were rigged markets with little (or no) sources of revenue other than their own participants.
The same official later confessed that, because 'Amway' was so big, it was beyond her pay-grade to become directly involved. She passed my complaint to central government trade regulators in London. It then took them about 12 years, and literally dozens of informed communications, and finally a visit, from me before any investigation was launched
However, the UK investigation revealed that 'Amway UK Ltd.' had never once declared a net-trading profit in 34 years, and that more than $20 millions had been declared in net- losses in the last 10 years of the company's existence. On paper, cash from other 'Amway' corporate structures ('Amway Europe' which held shares in 'Amway Korea') was being secretly pumped into the British front company to keep it afloat.
So the obvious questions to ask were:
- Why had the bosses of 'Amway' kept pouring cash down what appeared to be a bottomless hole?
- Why did the same bosses now want to pour more cash (in the form of attorney fees) down the same bottomless hole in order to preserve it?
The answer being that 'Amway UK Ltd.' had been the slightly unprofitable bait in a very profitable trap.
Privately, UK trade regulators agreed with my estimate that up to one billion $ had been generated via the peddling of a fraudulent step-by-step plan to achieve success to a never-ending chain of non-salaried contractees of 'Amway UK Ltd.' This related advance fee fraud had been conducted behind a parallel labyrinth of corporate structures which appeared to be independent of 'Amway'.
Predictably, these parallel structures were immediately closed when the UK investigation of 'Amway' was launched, and their owners were excommunicated from 'Amway' for breaking the rules.
No investigation was pursued into the 'Amway' racket in the UK after the front-company's officers lied to a High court judge about their long-time knowledge of this privately-controlled corporate structure's unlawful purpose and, thus, the permanently-insolvent UK 'Amway' front-company survived a public interest bankruptcy petition and it still exists to this day.
As a direct result of the ongoing failure of UK regulators, and law enforcement agents, to protect their employers (the public), currently, 200 000 - 300 000 UK citizens are being churned through 'Amway' copy-cat 'MLM' cultic rackets annually.
David Brear (copyright 2019)
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'Multi-Level Marketing' Warning.
The following deconstructed analysis has been formulated to sharpen the critical and evaluative faculties of all unwary persons approaching so-called 'Multi-Level Marketing' from the dangerous (subjective) point of view that it must be a business/industry, rather than from the safe (purely-objective) point of view that they don't really know what it is.
The quantifiable results of the self-perpetuating global 'Long Con' known as 'Multi Level Marketing,' have been fiendishly hidden by convincing victims that they are 'Independent Business Owners' and that any losses they incurred, must have been entirely their own fault.
Blog readers should observe how (in the above linked-videos) chronic victims of 'MLM' cults are incapable of describing what they were subjected to in accurate terms. Even though they are no longer physically playing along with the 'Long Con's' controlling-scenario, they unconsciously continue to think, and speak, using the jargon-laced 'MLM' script - illogically describing themselves as 'Distributors.'
Chronic victims of blame-the-victim cultic rackets who have managed to escape and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For years afterwards, recovering cult victims can suffer from psychological problems (which are also generally indicative of the victims of abuse):
depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness, fear of forming intimate relationships; inability to trust; etc.
David Brear (copyright 2019)
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'Multi-Level Marketing' Warning.
The following deconstructed analysis has been formulated to sharpen the critical and evaluative faculties of all unwary persons approaching so-called 'Multi-Level Marketing' from the dangerous (subjective) point of view that it must be a business/industry, rather than from the safe (purely-objective) point of view that they don't really know what it is.
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More than half a century of quantifiable evidence proves beyond all reasonable doubt that:
- the widely-misunderstood phenomenon that has become popularly-known as 'Multi-Level Marketing' (a.k.a. 'Network Marketing') is nothing more than an absurd, non-rational, cultic, economic pseudo-science maliciously-designed to lure unwary persons into de facto servitude, dissociate them from external reality and not only steal their money, but also deceive them into unconsciously acting the role of bait to lure other unwary persons (particularly their friends and family members) into the same trap.
- the impressive-sounding made-up jargon term, 'MLM,' is therefore, the misleading title for an enticing structured-scenario of control which has been developed, and constantly acted out as reality, by the instigators, and associates, of various copy-cat, major and minor, ongoing organised crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim 'Long Cons*' - comprising self-perpetuating rigged-market swindles**, a.k.a. pyramid scams (dressed up as 'legitimate direct selling income opportunites') and related advance-fee frauds (dressed up as 'legitimate: training and motivation, self-betterment, programs, recruitment leads, lead generation systems,' etc.).
- Apart from an insignificant minority of shills (whose leading-role in the 'Long Con' has been to pretend that anyone can achieve financial freedom simply by following their unquestioning example and exactly-duplicating a step-by-step-plan of recruitment and self-consumption), the hidden overall net-loss/churn rate for participation in so-called 'MLM income opportunities,' has always been effectively 100%.
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*A 'Long Con' is a form of fraud maliciously designed to exploit victims' existing beliefs and instinctual desires and make them falsely-believe that they are exercising a completely free-choice. 'Long Cons' comprise an enticing structured-scenario of control acted out as reality over an extended period. Like theatrical plays, 'Long Cons' are written, directed and produced. They involve leading players and supporting players as well as props, sets, extras, costumes, script, etc. The hidden objective of 'Long Cons' is to convince unwary persons that fiction is fact and fact is fiction, progressively cutting them off from external reality. In this way, victims begin unconsciously to play along with the controlling-scenario and (in the false-expectation of future reward) large sums of money or valuables can be stolen from them. Classically, the victims of 'Long Cons' can become deluded to such an extent that they will abandon their education, jobs, careers, etc., empty their bank accounts, and/or beg, steal, borrow from friends, family members, etc.
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** The enticing structured-scenario of control fundamental to all 'rigged-market swindles' is that people can earn income by first contributing their own money to participate in a profitable commercial opportunity, but which is secretly an economically-unviable fake due to the fact that the (alleged) opportunity has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own ill-informed participants. For more than 50 years, 'Multi-Level Marketing' racketeers have been allowed to dissimulate rigged-market swindles by offering endless-chains of victims various banal, but over-priced, products, and/or services, in exchange for unlawful losing-investment payments, on the pretext that 'MLM' products/services can then be regularly re-sold for a profit in significant quantities via expanding networks of distributors. However, since 'MLM' products/services cannot be regularly re-sold to the general public for a profit in significant quantities (based on value and demand), 'MLM' participants have, in fact, been peddled infinite shares of their own finite money (in the false expectation of future reward).
Thus, in 'MLM' rackets, the innocent looking products/sevices' function has been to hide what is really occurring - i.e The operation of an unlawful, intrinsically fraudulent, rigged-market where effectively no non-salaried (transient) participant can generate an overall net-profit, because, unknown to the non-salaried (transient) participants, the market is in a permanent state of collapse and requires its non-salaried (transient) participants to keep finding further (temporary) de facto slaves to sustain the enticing illusion of stability and viability.
Meanwhile an insignificant (permanent) minority direct the 'Long Con' - raking in vast profits by selling into the rigged-market and by controlling/withholding all key-information concerning the rigged-market's actual catastrophic, ever-shifting results from its never-ending chain of (temporary) de facto slaves.
Although cure-all pills potions and vitamin/dietary supplements, household and beauty, products have been most-prevalent, it is possible to use any product, and/or service, to dissimulate a rigged-market swindle. There are even some 'MLM' rackets that have been hidden behind well-known traditional brands (albeit offered at fixed high prices). Some 'MLM' rackets have included 'cash-back/discount shopping cards, travel products, insurance, energy/communications services' and 'crypto-currencies' in their controlling scenarios.
No matter what bedazzling product/service has been dangled as bait, in 'MLM' rackets, there has been no significant or sustainable source of revenue other than never-ending chains of contractees of the 'MLM' front companies. These front-companies always pretend that their products/services are high quality and reasonably-priced and that for anyone prepared to put in some effort, the products/services can be sold on for a profit via expanding networks of distributors based on value and demand. In reality, the underlying reason why it has mainly only been (transient) 'MLM' contractees who have bought the various products /services (and not the general public) is because they have been tricked into unconsciously playing along with the controlling scenario which constantly says that via regular self-consumption and the recruitment of others to do the same, etc. ad infinitum, anyone can receive a future (unlimited) reward.
I've been examining the 'MLM' phenomenon for around 20 years. During this time, I've yet to find one so-called 'MLM' company that has voluntarily made key-information available to the public concerning the quantifiable results of its so-called 'income opportunity'.
Part of the key-information that all 'MLM' bosses seek to hide concerns the overall number of persons who have signed contracts since the front companies were instigated and the retention rates of these contractees.
When rigorously investigated, the overall hidden net-loss churn rates for so-called 'MLM income opportunites' has turned out to have been effectively 100%. Thus, anyone claiming (or implying) that it is possible for anyone to make a penny of net-profit, let alone a living, in an 'MLM,' cannot be telling the truth and will not provide quantifiable evidence to back up his/her anecdotal claims.
** The enticing structured-scenario of control fundamental to all 'rigged-market swindles' is that people can earn income by first contributing their own money to participate in a profitable commercial opportunity, but which is secretly an economically-unviable fake due to the fact that the (alleged) opportunity has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own ill-informed participants. For more than 50 years, 'Multi-Level Marketing' racketeers have been allowed to dissimulate rigged-market swindles by offering endless-chains of victims various banal, but over-priced, products, and/or services, in exchange for unlawful losing-investment payments, on the pretext that 'MLM' products/services can then be regularly re-sold for a profit in significant quantities via expanding networks of distributors. However, since 'MLM' products/services cannot be regularly re-sold to the general public for a profit in significant quantities (based on value and demand), 'MLM' participants have, in fact, been peddled infinite shares of their own finite money (in the false expectation of future reward).
Thus, in 'MLM' rackets, the innocent looking products/sevices' function has been to hide what is really occurring - i.e The operation of an unlawful, intrinsically fraudulent, rigged-market where effectively no non-salaried (transient) participant can generate an overall net-profit, because, unknown to the non-salaried (transient) participants, the market is in a permanent state of collapse and requires its non-salaried (transient) participants to keep finding further (temporary) de facto slaves to sustain the enticing illusion of stability and viability.
No matter what bedazzling product/service has been dangled as bait, in 'MLM' rackets, there has been no significant or sustainable source of revenue other than never-ending chains of contractees of the 'MLM' front companies. These front-companies always pretend that their products/services are high quality and reasonably-priced and that for anyone prepared to put in some effort, the products/services can be sold on for a profit via expanding networks of distributors based on value and demand. In reality, the underlying reason why it has mainly only been (transient) 'MLM' contractees who have bought the various products /services (and not the general public) is because they have been tricked into unconsciously playing along with the controlling scenario which constantly says that via regular self-consumption and the recruitment of others to do the same, etc. ad infinitum, anyone can receive a future (unlimited) reward.
I've been examining the 'MLM' phenomenon for around 20 years. During this time, I've yet to find one so-called 'MLM' company that has voluntarily made key-information available to the public concerning the quantifiable results of its so-called 'income opportunity'.
When rigorously investigated, the overall hidden net-loss churn rates for so-called 'MLM income opportunites' has turned out to have been effectively 100%. Thus, anyone claiming (or implying) that it is possible for anyone to make a penny of net-profit, let alone a living, in an 'MLM,' cannot be telling the truth and will not provide quantifiable evidence to back up his/her anecdotal claims.
Although a significant number of 'MLM' front-companies (like 'Vemma', 'Fortune Hi-Tech Marketing', 'Wake Up Now') have been shut-down by commercial regulators, some of the biggest 'MLM' rackets (like 'Amway' ,'Herbalife', Forever Living Products' ) have continued to hide in plain sight whilst secretly churning tens of millions of losing participants over décades.
The quantifiable results of the self-perpetuating global 'Long Con' known as 'Multi Level Marketing,' have been fiendishly hidden by convincing victims that they are 'Independent Business Owners' and that any losses they incurred, must have been entirely their own fault.
Blog readers should observe how (in the above linked-videos) chronic victims of 'MLM' cults are incapable of describing what they were subjected to in accurate terms. Even though they are no longer physically playing along with the 'Long Con's' controlling-scenario, they unconsciously continue to think, and speak, using the jargon-laced 'MLM' script - illogically describing themselves as 'Distributors.'
Chronic victims of blame-the-victim cultic rackets who have managed to escape and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For years afterwards, recovering cult victims can suffer from psychological problems (which are also generally indicative of the victims of abuse):
depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness, fear of forming intimate relationships; inability to trust; etc.
David Brear (copyright 2019)
Hello David, I have also noticed, that Amway operates in long-term net loss in my country too. Seems to be tax evasion to me. They accumulated net loss so much in my country, that according to auditors their going concern was actually "ongoing concern". 2018 was first year after more than a decade, when Amway in Czech republic ended in net profit, though it was only after some articles appeared showing the terrible financial state of Amway "success factory". It really is funny, preaching success and operate in almost constant loss... Though there is very little info, I believe this is pretty much the same reason their russian office was raided 2 years ago by FSB. Russians do not let US scammers to apparently cheat with taxes.
ReplyDeleteThanks Anonymous.
DeleteIn 'MLM' cultic rackets, tax evasion has invariably occurred on the profits accruing from the peddling of the fake 'step-by-step-plans to achieve financial freedom.' A lot of this stolen money has been collected in relatively small ammounts in cash. One witness I interviewed was a former 'Amway Diamond' from Northern Ireland. He knew that suitcases stuffed with stolen cash had been flown to the USA without any payment of UK or Irish tax. UK government trade regulators and law enforcement agents were informed of these serious crimes, but mysteriously no criminal investigation/prosecution followed.
Part of the reason for this being that 'Amway' front companies have cleverly offered to pay retail sales tax on the transactions occurring between them and their temporary contractees - making these unlawful investment payments (based on the false expectation of future reward) appear to be lawful sales (based on value and demand).
In simple terms, various governments internationally have been in receipt of large sums of money deriving from US-controlled major racketeering activity, but disguised as lawful nationally-registered enterprises.
The 'Amway' racket has operated in essentially the same way all over the world for decades and it has spawned hundreds of copy-cats.
The various international 'Amway' corporations don't need to make profits, but, in order for the racket to function, their bosses have hidden their chronic insolvency. All these various fake direct selling companies have been centrally-controlled, and financed, from the USA. Their real function has been to act as false 'beacons of hope' luring a never-ending chain of vulnerable persons into temporary de facto slavery.
When you add up all the accumulated losses of all the millions of ill-informed persons who, over the décades, have been duped into wasting their time and money buying, and duplicating, essentially the same financially sucicidal 'MLM' plan, the scale of the 'MLM' racket is revealed as truly staggering.
I have described American 'MLM' racketeers (like the De Vos and Van Andel clans) as having deployed financial and psychological warfare tactics against millions of their fellow citizens and against millions of citizens of dozens of countries.
Thanks Anonymous - Your linked-video features two 'MLM' adherents who have been ensnared, and temporarily enslaved, by 'Amway' under-bosses acting the unoriginal role of ordinary poor humans who have discovered a secret step-by-step plan to achieve total Financial Freedom (i.e. transform into wealthy 'MLM Diamonds' - superhumans living in a form of paradise on Earth where no one works and everyone wears a Rolex and drives a flash car).
ReplyDeleteAll 'MLM under-bosses have played essentially the same role and have pretended that they are prepared to share their 'secret plans' with anyone (for a price).
The mystifying names of the companies which 'MLM' under-bosses hide behind, have been immaterial.
The two 'MLM' adhérents have lately discovered that their perfect role-model 'Amway Dimonds' have also been peddling another version of the pernicious 'MLM' fairy story. Alarm bells are now beginning to ring in their minds. However, what 'MLM' racketeers claim to be doing and what they actually doing, are not at all the same.
Classically, the two 'MLM' adherents featured in the linked-video have wasted more the $20 000 (+ many hours of their time), but they are still making various assumptions based on the pernicious fairy story they have been told and on what they think they have witnessed. It is an absolute certainty that they will not have seen any quantifiable evidence regarding the 'Amway' under-bosses real activities (e.g. income-tax payment receipts).
Again classically, these 'MLM' adherents are still unconciously repeating the 'business' jargon, which is meaningless nonsense designed to shut-down their critical and evaluative faculties.
The quantifiable evidence proves that what is laughably labelled, 'MLM,' is not a business (in the traditional sense of the word), has never been a business and will never be a business.