By the 30th level, the entire population of the earth will be in the system and the last 3 billion people who just entered the system into the 30th level have nobody else to refer. If each member is allowed to refer 6 friends, then the entire world population will be covered by the time it reaches 13th level itself (as illustrated in the chart below). Everybody they try to approach is already a member. The forerunners would have made huge amount of money by now and would go absconding, leading into a fraud.
"We learned that two Dateline producers had registered as IBOs and for months had been conducting undercover research for the story, which included using a hidden camera to videotape meetings and conversations with IBOs. The producers did not identify themselves as working for Dateline, instead feigning interest in building a business powered by Quixtar."
He tells us the club no longer has an initiation fee – they were forced to waive it six years ago in response to the economic downturn. ‘You have the top two or three clubs in the area – Bayou Club, Belleair Country Club, and probably Feather Sound – with no initiation fees to join,’ he says. ‘It makes it very easy to be part of a club these days.’
The FTC’s ruling that Amway is not a pyramid scheme is based partly on the “70-10 Rule”: To qualify for Performance Bonuses based on downlines’ sales, an Amway distributor is required to sell, according to Amway’s Business Reference Manual, “at wholesale and for retail at least 70 percent of the total amount of products he bought during a given month”—this is supposed to prevent “inventory loading,” the forced purchase of unsalable merchandise. Amwayers are also required, for the Performance Bonus, to sell to at least ten retail customers in a given month, which ensures that real business is being conducted.
Last year, my friend’s roommate was caught up in the snares of Amway. It started innocently enough, but rapidly declined into a spiral of crazy we could not rescue her from, despite our efforts. In addition to purchasing binders of Amway sales strategies and tactics, this girl also had CDs she’d listen to while she slept, selling her on positive thoughts and Amway success. She even attended international Amway conferences, which cost thousands of dollars out of her own pocket and have yet to return anything.
Thanks to the DeVoses, Michigan’s charter schools enjoy a virtually unregulated existence. Thanks to them, too, the center of the American automotive industry and birthplace of the modern labor movement is now a right-to-work state. They’ve funded campaigns to elect state legislators, established advocacy organizations to lobby them, buttressed their allies and primaried those they disagree with, spending at least $100 million on political campaigns and causes over the past 20 years. “The DeVos family has been far more successful not having the governor’s seat than if they had won it,” says Richard Czuba, the owner of the Glengariff Group, a bipartisan polling firm in Michigan. “They have, to some degree, created a shadow state party. And it’s been pretty darn effective.”