harleyda, from my understanding, I don't even see these so-called meal packs as a tax write-off scheme. XanGo representatives openly claim that this new endeavour is another form of Multi Level Marketing (MLM) strategy using the far-reaching powers of the Internet to build a global network of contributors. While they try to assure potential recruits that this is not a pyramid scheme, they request annual donations of $540 per member (plus a $36 one-time registration fee). Each new member is also asked to recruit three personal contacts, who naturally must also find three new members, so that each person can thus establish their own network that will ultimately result in growing profits for each individual participant.
Here is what their introductory flyer says: "Before the Internet, it was hard to succeed in a traditional MLM business. Even now, you have to be able to sell products and recruit 20, 30, 50 or even 100 or more to achieve substantial success. Network Goodness is not traditional network marketing. Rather, it is the ultimate "Pay-It-Forward" project for two major reasons: 1) No product to sell. Meal Pack is proven. AmeriCares guarantees its delivery. It's a gift of love to the most malnourished. 2) You only need to SPONSOR 3 PEOPLE since the system creates automatic sponsorship."
While this may sound laudable and simple at first glance, the promo flyer also praises (IN BOLD ITALICS) the enormous benefits of network marketing as an "investor's dream... the best-kept secret of the business world... an industry with steady annual growth, healthy cash flow, high return on invested capital, and long-term prospects for global expansion..." (cited from Page 37 of Robert Kiyosaki's book, "The Business of the 21st Century.")
In addition, if you listen to their video clip (www.NetworkGivingProject.net), here are a few juicy explanations that I wrote down from their presentation:
- "To become an emissary of life over the next six months..." (you need to) "...donate 600 PV in XanGo Meal Packs within a period of 12 months to achieve the title of Emisary of Life..." (i.e. through one of the following three plans) ... "1-Time Purchase of 6 meal Packs; Monthly order of 1 Meal Pack for six months; Monthly order of 1/2 Meal Pack for 1 Year (Note: No Commissions are generated w/o 100 PV monthly order."
Conditions for starting: "Get starged for only #36 - 1) join XanGo - $35 - Get NetworkGoodness.org site - $1 First month; 2) 1 Meal Pack ADP (Automatic Delivery Program) - $90 starting next month; 3) Find 3 others within 30 days."
- "You should be self-funding by the time your first monthly ADP order actually hits .."
- Recruitment strategy: "look for people who are warm, open and easy to talk to; people who have good people skills; people who are reliable; people who are coachable; who have a reasonable amount of influence and credibility; and who are industrious, people that are highly-driven..."
- Here's how the money works: find your 3 people in the first month... if you train them well, etc., after a month you will begin receiving a residual income of $15... this will build up each month until, six months later, you will have 600 people working under you and this will bring you monthly a residual income of $5, 595.
So, in summary, there you have it. If this isn't a pyramid scheme, then I don't know what is. What do you think? |
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