The MLM Special Deal Scam
It has been reported by Businessforhome.org that one of Dubli’s top independent business owners has been paid $1 million in cash or shares to become an independent business owner. This is an extra incentive that is not available in the Dubli compensation plan. The problem is, this has not been disclosed to the people they are recruiting. In my opinion, this is fraud. In the following video, Kevin Thompson a MLM attorney explains why this is fraud.
“In the competitive landscape of MLM, in order to stimulate recruitment, companies with cash are tempted to drink from the fraud-cup and poach from the more seasoned companies. When the “top leaders” make their move and boast of the benefits of the product and company, it creates synthetic success stories. It creates the appearance of momentum, which creates a more favorable recruiting environment.”
“The non-deal receiving distributors (“lemmings”) follow the distributors because, in most cases, these deal-receiving distributors are great communicators and great recruiters. The lemmings TRUST their upline. But if the lemmings actually knew there was a little extra in it for the promoters….it would slow things down dramatically. The magic would vanish and people would be in a better position to make informed decisions.”
“… as an industry, it’s been going on for years. We’ve known about it, yet we’ve done very little to stop it (or even slow it down).”
“When you see a networker making a move, never feel embarrassed to ask “Were you given extra incentives to switch over? Did the upline kick in extra incentives to get you to switch?”
– Source Keven Thompson
The FTC has the following to say about this issue, “When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience), such connection must be fully disclosed. . . . “ – Source FTC
In my experience doing reviews of various MLM scams, I have seen many special deals made. Most involve placing people high in the compensation plan as a perk. These deals go to people that bring with them a large following from other companies they have represented. Also, I have seen this type of perk go to strong defenders of companies that have been reported as scams.
I would like to take Keven Thompson’s advice and ask two questions of a Dubli top independent business owner:
Matt Trainer were you given extra incentives to switch over to Dubli that are not available to your downline?
Matt Trainer are you the million dollar Dubli man?
Here is a video of Matt Trainer and Rich Cook promoting their previous scam Neucopia.