Deception and Delusion: How Pyramid Schemes Maintain the "Direct Selling" Disguise

According to the MLM companies, Herbalife, Nu Skin and Amway, and others, the great majority of people who sign sales contracts, join as “salespeople”and buy sales kits have absolutely no interest in being salespeople or in making any money at all in those enterprises. Why did they join and pay the fees and sign the contracts? Merely to buy the product at a discount, the companies say. They made hundreds or even thousands of dollars in purchases only because they loved those products, not because of reward incentives, quotas and qualifying for rewards. So, those consumers who ended up making no profit really did not “lose” money because they were never trying to make money in the first place.
Of course this story is not real or true.
There is another explanation. It is based both on corporate deception and consumer self-deception or perhaps delusion.
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Wall Street Piracy and Pyramid Mania Merge

When pyramid schemes ignite on Main Streets anywhere in the world, the ensuing manias have been compared to a wildfire, a stampede, a mob-like madness. The rallying cries of “get in now, ground-floor opportunity, unlimited income!” are spread virus-like in neighborhoods, churches and offices.

The pyramid epidemic is a phenomenon not unlike frantic selling and buying on Wall Street trading floors during wild periods of bubble expansion. The similarity between Main Street pyramid manias and Wall Street buying frenzies is not superficial. The two share fundamental characteristics, and, today, the madhouse world of stock speculation and the hysteria of pyramid scheme zealotry are
merging. Read More...
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