California Attorney General Edmund G. Brown Jr. announced on in an offical release on August 5th 2008 a lawsuit against YourTravelBiz.com for running a illegal pyramid scheme. In the release he calls it a giant pyramid scheme.
Now when I first here this, I think yep it’s an election year and someone needs headlines. Yet that maybe not the only case but his reference to victims is disturbing. One of the reasons he cites is that only 38 percent of the individuals made any compensation in 2007.
Now the real question is did the other 62 percent even work their business at all? Statistics have shown in a study done by Leadersclub first published in 1996 “Where did the 97 percent failure rate originate,” that 97% of distributors fail to earn more then $200.00 per month.
Yet is it any companies fault, when the distributor “an independent small business owner” does not take any of the necessary action to market and grow their business?
Edmund Brown did cite also the video’s that portray people driving porsches and other luxury cars, showing checks and other income results online that would could be deceptive. It really does not matter if you have a disclaimer or not on the website, especially if a politician is going after votes.
Another thing I found disturbing about this is YTB is a publicly traded company. Recently I wrote about how Usana was attacked for what appears was to purly manipulate the stock for financial gain.
So what does all this for you and I as network marketers? We really must keep everything we do and say in check, no false promises only reality. Can you make a decent living in network marketing? You absolutely can if you only take the action to work your business.
Many network marketers get involved based on hype found in many of the advertisements found on the internet, that have no statistics to back them up. If your offer sounds to good to be true, then your probably suspect as well.
If your in a business and not finding success, then maybe it’s finally time you got serious about increasing your knowledge of marketing and sales.