Yet another pyramid scheme bites the dust
One of the latest pyramid schemes to be shut down is Vemma Nutrition Company, which promotes health and wellness drinks to young adults, typically those in college. Vemma is allegedly recruiting students to peddle their products, claiming their distributors will get rich without the typical 9-5 job.
The problem is that the focus is on recruiting new distributors instead of selling the product. This makes it a pyramid scheme, which is illegal in the United States, as well as many other countries around the world.
Vemma charged with lying about earning potential
Every person wants to hear that they can get-rich-quick, without any work on their part. This is one way that multi-level marketing hooks people so easily. In this case, Vemma purports that their affiliates can earn as much as $50,000 per week. The only limits are your own effort. In addition to the claims of being a pyramid scheme, Vemma is charged with making false allegations about earning potential.
How can you tell if you’re getting involved in an illegal pyramid scheme? The biggest red flag is when you are encouraged to bring other people in beneath you to make money. The company doesn’t focus on the product, but on the distributorships. You should:
• Learn all you can about the company
• Ask lots of questions
• Talk to other distributors, make sure they are legitimate, not shills
• Get advice from an accountant, trusted friend, businessperson, as a gut check
• Make sure the plan fits your goals and dreams
So who are the legit MLM companies?
There are legitimate multi-level marketing plans, Avon, Pampered Chef, and Amway. The line between legal and illegal is a thin line. The FTC says it comes down to product. The focus has to be on the product. There are probably more companies than Vemma that are a distributor-scheme instead of a legitimate selling business. If you think you’ve gotten involved in a pyramid scheme, you can make a complaint to the FTC for them to investigate.
The only way to really make money is to work hard. People who tell you otherwise are just trying to get you to buy into their scheme to make them money. Save your money and your time. Invest in tried and true get-rich plans. Work hard. Go to college. Save money. Spend wisely. Don’t go into debt for things like vacations or durable items like clothes. Pay your bills. Live within your means. And don’t fall for get-rich schemes.