MLM, Amway, Ponzi Scheme discussed on Timesuck with Dan Cummins
Is payroll on November nineteenth by December he was stalling with investor she didn't have the money to pay all of their withdrawal. Requests on December tenth, he suggested to his sons Marken Andrew that their firm PAT over one hundred, seventy million in bonuses. Two months ahead of schedule from two, hundred, million in assets firm still had mark and Andrew confronted their father ask him like what are you fucking do and how can the firm paid bonuses if they can't even pay investors and at that point made asked us tons to follow. Him into his apartment where he admitted that he was quote finished and that the asset management arm of his firm was in fact, nothing more than a Ponzi scheme in his words. One Big Lie Market Andrew reported their dad to authorities. How sad for them to realize that their father's business a business he'd hired them you know to to help him with with giant con wasn't a financial guru fucking liar. On June twenty, nine, two, thousand, nine made off with sent two hundred and fifty years in prison. He's in prison right now. So Pyramid Scheme Ponzi Scheme MLM company why do these people do it? I think the simple answer is greed they do it because they want lot of fucking money. and this type of crime when you can get away with it pays a lot more than running a legitimate investment company. Also and I'm guessing a bit here power and control. And who else loves power control co-leaders loved to have godlike influence over the lives of their followers. Who Run these financial schemes love the con- itself as much as the money that comes with it or if they truly love to people. To prove themselves over and over and over and over again at they're smarter than all the people who've trusted them even if they're not smarter just less scrupulous. And what about the people who buy into these schemes they keep falling for too good to be true. Investment promises some MLM's or able to drag their profitless participants the ride for years how? Because MLM's often affects victims in psychological way similar to how a cult effects cult members according to Rick Allen. Ross. An expert cult de Programmer Colts, and MLM's are incredibly similar over the years. Ross has helped e program more than five hundred Colt victims. MLM's pop up. So frequently in his deprogramming temps, his line of work that an entire chapter of his book colts inside out devoted specifically to an amway intervention. An Amway. Is actually where next co-leader Keith Ranieri got his start. According to Ross most destructive cults and MLM share three defining characteristics. One a charismatic leader who is worshipped and revered to a culture of coercive persuasion or thought reform in which all members of the group are taught to think alike and isolate themselves from anyone who questions their devotion and three sexual economic or other forms of exploitation of group members by leaders obviously with MLM's expectation usually economic, not sexual. Like a CO leader, the MLM leader controls everything regarding how individual members operate within their group charm by the opportunity of making money have a community people suddenly find themselves under the control of a powerful institution like co-leaders. MLM's heavily promote the success of the distributors who do Prophet and they shame those who don't. If a cold you don't believe the leader is the one true. God. Or a prophet of the one true God right? That's that's not the the leaders problem. That's your problem. US Don't have enough faith you maggot. You don't make money in an MLM. That's not because the system is built for everyone to succeed is because you aren't trying hard enough to succeed. You're the problem not the system symptoms perfect. Maggots, worship, the system, civil vitamins you lazy fuck hail the Good God Amway. I just felt ten central. Michigan members lead to Costa curious. Once people began working for the company. MLM doesn't tolerate questions or criticism I do not defy the God Amway Hail. Amway. Take. Amway's probably the most harmless group by the way just cracks me up to tease him. Douglas and Brooks. In Attorney who represents victims of pyramid schemes describes what often happens when a distributor questions and MLM's authority says, you're trained to avoid people who questioned whether this is a viable business or not, which is exactly the same technique that cultures. They try to isolate you from people who question your belief system I've been contacted by number of people who deal with colts, survivors, and some of their clients are former MLM. People. As time goes on and participants lose money, their self esteem diminishes they feel at fault for their failures anytime the attempt to blame the MLM system the blame is shifted back on them by other distributors who are unwilling to accept criticism about their company like a cult. MLM's also tended target the desperate who to colts gopher often they go after people who are down on their luck and some people who are lonely spiritually hurting lost souls desperately looking for a home lonely souls looking for a sort of family MLM typically go after people who are financially hurting people who don't seem to have or at least feel like they have many other financial options. Now, let's talk about some very fascinating psychological principles. That we've talked about. To some degree here in the past and the suck I but were discussing here again. The key to why people throw more money away after initially Louis Money Shady lies in the psychological principle of doubling down when our brains try to prevent us from acknowledging that we've made a bad decision doubling down on a decision is the result of to psychological processes at work cognitive dissonance and the backfire effect I find all the so interesting and kind of a bit depressing but also interesting. the former involves the difficulty in reconciling to opposing ideas. In the nineteen fifty-six book when Prophecy Fails Psychologist Leon festinger and his co authors describe what happened to a UFO. Coat when the mothership failed to arrive at the appointed time instead of admitting error quote members of the group sought frantically to convince the world of their beliefs. They made a series of desperate attempts to erase their wrangling dissonance by making prediction after prediction in the hope that one would eventually come. True. This UFO Colt scenario is an example of cognitive dissonance. The stress we experienced when we hold two contradictory thoughts, beliefs, opinions, or attitudes. Cognizance is what we feel when the self concept I'm smart I'm kind I'm convinced belief is true is threatened by evidence that we did something that was not smart. The we did something that was not kind and hurt another person or ourselves that the belief is not true to get away from these uncomfortable feelings you either have to modify your view except a new evidence and come to terms with the fact that you fucked up and made some terrible choices or you can deny all incoming evidence, the points to you fucking up and if you choose the path of denial. You. Start walking down a real shitty path that has literally never made anyone a better person. when you refuse to admit your mistakes, you train yourself to be less open to constructive criticism, which is not good. If you care at all about evolving improving constructive criticism helps hone skills correct bad habits.