On Take It To The Bank,
00:00:01.36\00:00:02.70
you'll find ways
to get out of debt.
00:00:02.73\00:00:05.83
Solve your credit card problems.
00:00:09.77\00:00:14.68
How to make and
stick with the budget?
00:00:14.71\00:00:19.85
Simple ways to save.
00:00:19.88\00:00:21.68
Buying or selling a home
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and many more financial
matters on Take It to The Bank.
00:00:26.92\00:00:32.13
Hi, my name is Cordell Thomas,
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and welcome to
Take It to The Bank.
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I'm excited that you're
here and a lot of your questions
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have been coming through
via email, via phone calls.
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And some of the things
I think are very important
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as that you're talking about.
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We had a couple of
questions that I thought
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we should address and I
think we'll do that today.
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Today we're gonna talk a
little about consumer awareness,
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buyer beware and
this has to do more
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so with some of those
things that are out there
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that we've always
had questions about.
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Many of the
things that we talk about
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and that we hear about
have to do with gifting
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and or multilevel marketing
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and has to do more so
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with how we
develop a small business.
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And there are,
those that are out there
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that are predatory in nature
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that would like to get
us involve in something
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that's not necessarily
a legitimate business.
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And the question comes across,
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what is legitimate?
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Well, let me
start with the small,
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a short, short story.
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I was online and a
good friend of mine,
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I hope that they
don't really know
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who that person is,
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sent an email to me saying,
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"Hook up with him
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on this specific
type of gifting project
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that they had."
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Now there are a
variety of different schemes
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that are out there and
you have the first question
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that you should
pretty much ask is,
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what is this thing called
and its surrounding its all,
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surrounding this thing gifting
or giving type of program?
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So as I asked the question
I said, if it's gifting then
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why are you expecting
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some type of
return on investment?
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And that was my simple
question to the individual.
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Now the feedback or the
answers that I got at the time
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when I asked the
question was simply this.
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Why are you worried
about return on investment
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that's, that's not it.
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You're missing my point
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because if you can
give you'll get money back
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and then I said,
that's still my question.
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My question is,
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if you're gifting
something to someone,
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why do you expect a
return on investment
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and that's simple question,
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the critical question that
you should pretty much ask,
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because it's legitimate.
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I'm getting money back.
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I'm getting to tune of almost
$2,000 a month back right now
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and it will constantly grow.
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Okay, so the first thing I did
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was I took a step back
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and I said, let
me take a look at it
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but still you
haven't answered my question
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because if it's truly gifting,
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then you shouldn't be
expecting anything in return.
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And that's what
we as individuals
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should be thinking about
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when we look at
being good stewards
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and when we give
something to Christ,
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it's not we expect
anything in return.
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It's a fact that He blesses us
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but we give to Him
willingly and knowing that,
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that money is actually His.
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So I went and did some
research on this thing.
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And there was some
interesting information
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that popped up.
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It showed that this
thing goes in cycles
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and the gifting
thing has targeted
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many different demographics.
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So there's issues about
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gifting for a
different type of group here
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and gifting over
here and giving over here,
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many different
groups have been targeted
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and all of them
have gotten involved
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in their
specific type of programs
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that benefit the
people at the top.
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Now the first, first issue
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that I asked people to look at
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is when you take a look
at any of these projects,
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do the research.
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There are several
things I'm going to talk about,
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the first of
which is, I made a call
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and talked to
the IRS about this.
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Give me the
parameters on gifting.
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They explained that you can gift
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up to
approximately 12 to $13,000
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on an annual basis
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without having to take
any type of penalty or tax
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on that amount and
the person receiving,
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and that person
that's received the funds
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can receive it willingly
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and it shouldn't
be a major issue.
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But then I asked
an additional question
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about this type of program
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and the person on the end
of the line made this comment,
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that they know that
this program is ongoing.
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And they understand
and it's being watched
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by those in certain
levels of government
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as those who are
very interested in taxing
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and getting funds back
from any type of profit gained.
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One of the major concerns
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about this
gifting type of situation
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is that it comes in
cycles and we can explain
00:05:00.93\00:05:03.20
what I mean by cycles
00:05:03.23\00:05:04.57
but gifting in and of itself
00:05:04.60\00:05:05.93
is something
that is promoted by,
00:05:05.97\00:05:08.60
it's in IRS form 950
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that if you, you can
gift up to $13,000 a year
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and by doing so,
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you are able to get a
return on that investment.
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You get money back
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because you are
now building a team,
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you bring six
people on to a team
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and your team of
gifting starts spinning
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that money back towards
you in the form of cash.
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So my first question again
was, well, if it is gifting,
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what does it have to do
with return on the investment?
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Now if you make
a gift to someone,
00:05:42.37\00:05:44.67
the annual gift
exclusion via the form IRS 950
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tells you that you can
gift up to a certain amount
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which is how they
promote this type of thing.
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Now I also have
many different questions
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about the gifting I don't know
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as much as I should
but I will tell you this,
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that it has everything
to do with building a team,
00:06:03.79\00:06:07.63
building a pyramid
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and there is no
product to be sold,
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it has everything to
do with money transaction.
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And based on you
giving a certain pool,
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the greater the team under you,
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the larger the amount of money
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that you can get
back in your pocket.
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So now I did the research,
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I went back online and
I asked several questions
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through different search engines
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and basically said,
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what is this
thing called gifting?
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And what has
been the ramifications
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over the past several cycles,
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because that's the
other element to this.
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Many different pyramid
schemes go through their cycles.
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Their yearly cycles can range
between three and five years
00:06:46.00\00:06:49.17
depending on when and
this is a critical term,
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critical mass happens.
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Make sure you ask that question
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because they
will always tell you,
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"Oh, we have not yet
reached critical mass."
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Critical mass basically
is when you go up to someone
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and tell them
about this specific thing
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and ask them to join.
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And if you go
to that next person
00:07:07.32\00:07:09.32
and they'll typically
say, "I've already heard of it,
00:07:09.36\00:07:11.66
someone's already
talked to me about it."
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And it's at that point in time
00:07:13.26\00:07:14.60
when you have asked 10 people
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and 9 out of
those 10 already know,
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you begin to get discouraged
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because you
cannot build your team
00:07:20.47\00:07:23.17
because everyone already
knows about the same thing
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and have made
their own decision.
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Now whether or not
you like that approach
00:07:27.98\00:07:30.58
I thought it beneficial
to talk about the comparison
00:07:30.61\00:07:35.28
between multilevel
marketing, network marketing
00:07:35.32\00:07:39.65
and this thing called pyramids.
00:07:39.69\00:07:44.53
So as we look at what
a pyramid actually is.
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I thought it unique to
compare multilevel marketing,
00:07:48.96\00:07:52.80
network marketing and
assess that based on pyramid.
00:07:52.83\00:07:58.84
Now I mentioned to you
earlier about critical mass,
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why is that so important?
00:08:01.88\00:08:03.61
Because as you
build the pyramid,
00:08:03.65\00:08:05.35
you have a person at the top
00:08:05.38\00:08:06.72
that's built his team
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and that team
has built their team
00:08:08.12\00:08:09.45
and that team
has built their team.
00:08:09.48\00:08:10.82
So now you have
exponential growth
00:08:10.85\00:08:12.92
in how they can get
their message out there.
00:08:12.95\00:08:16.56
But what's wrong with that?
00:08:16.59\00:08:18.19
Because in any type
of legitimate business
00:08:18.23\00:08:21.60
the first thing that arises is,
what is their business focus?
00:08:21.63\00:08:25.60
When you have a
multilevel marketing,
00:08:25.63\00:08:27.57
you are building a business
based on a specific product
00:08:27.60\00:08:31.87
and or service that you have
00:08:31.91\00:08:33.48
and that you can
give to someone else.
00:08:33.51\00:08:36.11
In a pyramid it's about
recruiting other members
00:08:36.14\00:08:40.22
and there's not necessarily
any legitimate business
00:08:40.25\00:08:43.79
and or service and if
product and or service,
00:08:43.82\00:08:46.35
and if there is a product
00:08:46.39\00:08:48.16
you haven't
really heard about it
00:08:48.19\00:08:49.89
and haven't really understood,
00:08:49.92\00:08:52.26
you know, what that
product actually is,
00:08:52.29\00:08:54.06
because from my standpoint
00:08:54.10\00:08:55.43
if they have a
really good product,
00:08:55.46\00:08:56.93
why isn't it
well-known in the marketplace?
00:08:56.97\00:08:59.57
And when you ask
those type of questions,
00:08:59.60\00:09:02.00
then you begin to understand
00:09:02.04\00:09:04.67
that the
business in and of itself
00:09:04.71\00:09:07.24
has nothing to do
with a legitimate product,
00:09:07.28\00:09:09.08
that product is only a sideline.
00:09:09.11\00:09:11.01
And what I've also found out
is the business in and of itself
00:09:11.05\00:09:14.92
does not necessarily
own the product itself.
00:09:14.95\00:09:18.79
They're actually
selling a product
00:09:18.82\00:09:21.16
for some other
legitimate business.
00:09:21.19\00:09:23.86
So now you
begin to get a context
00:09:23.89\00:09:25.86
that it really has nothing to do
00:09:25.89\00:09:27.86
with some tangible
product or service.
00:09:27.90\00:09:29.73
It has everything to
do with building a team.
00:09:29.76\00:09:33.13
The other area is profits.
00:09:33.17\00:09:35.54
Number two,
profits basically say
00:09:35.57\00:09:38.17
they're primarily
based on the sales
00:09:38.21\00:09:40.01
of a product or service
is a legitimate business.
00:09:40.04\00:09:43.35
You know, you have something
00:09:43.38\00:09:44.71
that you have to
give to somebody,
00:09:44.75\00:09:46.08
someone or, or give
them a service or product,
00:09:46.11\00:09:48.82
but in a pyramid
00:09:48.85\00:09:50.39
it's primarily
based on membership fees
00:09:50.42\00:09:53.25
which can be very substantial.
00:09:53.29\00:09:55.29
And that's the other
thing to look for is,
00:09:55.32\00:09:57.49
asking that,
that specific question
00:09:57.53\00:09:59.89
that can give you
the answer that you need,
00:09:59.93\00:10:01.96
or you can see that
00:10:02.00\00:10:03.80
they are avoiding
answering that question.
00:10:03.83\00:10:06.03
I've been to several,
I'm not going to label
00:10:06.07\00:10:08.50
which ones I went to
but I've been to many.
00:10:08.54\00:10:11.24
I don't know if I have
this thing on my forehead
00:10:11.27\00:10:13.41
where that guy will be
a great business person
00:10:13.44\00:10:15.68
in our specific scheme.
00:10:15.71\00:10:17.21
So let's ask him to come
and sit in on our presentation.
00:10:17.25\00:10:21.05
And their
presentations are fantastic.
00:10:21.08\00:10:23.12
The presentations
are though all about
00:10:23.15\00:10:25.72
and I saw the best
one yet is has a product,
00:10:25.75\00:10:28.59
it does have a product
which I've never heard about.
00:10:28.62\00:10:30.83
And then the product is set
00:10:30.86\00:10:32.19
to deliver
something that has never,
00:10:32.23\00:10:34.33
I've never
heard has been studied
00:10:34.36\00:10:36.26
or any results
of any studies about
00:10:36.30\00:10:37.97
how that kind of
thing can work itself out.
00:10:38.00\00:10:40.74
But when they get into
it, the product is minimized,
00:10:40.77\00:10:43.61
the product is not a part
of their overall sale scheme.
00:10:43.64\00:10:46.98
What they're advertising is
a specific about membership,
00:10:47.01\00:10:53.85
membership growth
and a substantive fee
00:10:53.88\00:10:55.62
they can get for bringing
in five or six individuals
00:10:55.65\00:10:59.75
to that membership.
00:10:59.79\00:11:01.86
Now what's quite interesting
in all of this, is a fact that
00:11:01.89\00:11:05.73
when you look at a
community of individuals
00:11:05.76\00:11:08.06
who get involved in
gifting or get involved
00:11:08.10\00:11:11.40
in any type of
multilevel marketing or pyramid,
00:11:11.43\00:11:16.04
you begin to
understand the distinctions
00:11:16.07\00:11:17.87
between the two
00:11:17.91\00:11:19.24
when you ask specific questions
00:11:19.27\00:11:22.11
and some of those
questions include,
00:11:22.14\00:11:24.15
okay, what is my support system?
00:11:24.18\00:11:26.05
What is a product
or service that I have?
00:11:26.08\00:11:27.98
What's a startup
cost that I have?
00:11:28.02\00:11:29.75
And when you
see a pyramid scheme
00:11:29.78\00:11:33.19
versus multilevel
marketing or network marketing,
00:11:33.22\00:11:35.72
you begin to see
little differences
00:11:35.76\00:11:38.06
and nuances in how
they approach thing.
00:11:38.09\00:11:40.10
For example,
household goods or services
00:11:40.13\00:11:42.56
that consumers typically use
00:11:42.60\00:11:43.93
in an everyday life in business,
00:11:43.97\00:11:46.53
that's considered of
more multilevel marketing
00:11:46.57\00:11:48.94
where, hey, I'm
happy with what I bought
00:11:48.97\00:11:50.97
at this retail,
00:11:51.01\00:11:52.34
I'm going to go
to a friend of mine
00:11:52.37\00:11:53.71
and say, hey, guys you know,
you got to get this product
00:11:53.74\00:11:55.68
because it's a
really good product.
00:11:55.71\00:11:57.31
I would recommend
you go to that retailer
00:11:57.35\00:12:00.12
and buy the product,
00:12:00.15\00:12:01.48
so now I can go
to a specific place,
00:12:01.52\00:12:03.39
see a specific product
00:12:03.42\00:12:04.95
and get good
feedback about the product
00:12:04.99\00:12:07.12
and that's why I buy
that product or services,
00:12:07.16\00:12:10.26
that's where network marketing
or multilevel marketing
00:12:10.29\00:12:13.63
comes into play,
00:12:13.66\00:12:15.00
where you have a group of people
00:12:15.03\00:12:16.53
who are sold on a product
00:12:16.56\00:12:17.93
that you need to
use that you bought,
00:12:17.97\00:12:22.17
purchase for your
home or your business
00:12:22.20\00:12:25.24
and you're happy
with how it performs
00:12:25.27\00:12:27.41
and you go to somebody else
00:12:27.44\00:12:28.78
and say, I have a
great referral for you,
00:12:28.81\00:12:31.25
you should try this out.
00:12:31.28\00:12:32.61
And your neighbor or friend
don't have to go through you,
00:12:32.65\00:12:36.58
they go directly to
that legitimate business
00:12:36.62\00:12:38.65
and purchase that product
00:12:38.69\00:12:40.82
that's how more so
network marketing goes.
00:12:40.86\00:12:43.69
Now how does it work?
00:12:43.73\00:12:46.03
Well, sometimes there's
kind of like a finder's fee.
00:12:46.06\00:12:49.50
You go out and market
for that organization,
00:12:49.53\00:12:52.63
then of course
there's a legitimate fee
00:12:52.67\00:12:55.34
that can be paid to someone
00:12:55.37\00:12:56.71
that is bringing
in business for you.
00:12:56.74\00:12:58.67
On the flip side of that air,
00:12:58.71\00:13:01.11
the pyramid
schemes have a product
00:13:01.14\00:13:03.85
that's not
necessarily the priority.
00:13:03.88\00:13:07.78
It's thinly veiled as a
good product or whatever
00:13:07.82\00:13:10.25
but you never hear
00:13:10.29\00:13:11.62
about any kind of
quality research done
00:13:11.65\00:13:13.59
on that product
and you don't hear
00:13:13.62\00:13:15.52
that product being
prioritized in the presentation.
00:13:15.56\00:13:18.79
What you hear is
an individual talking
00:13:18.83\00:13:21.30
about your
development of a team.
00:13:21.33\00:13:24.17
It's based more so
on bringing somebody in
00:13:24.20\00:13:28.07
and it was interesting
00:13:28.10\00:13:29.44
because I had a
great conversation
00:13:29.47\00:13:30.94
with an individual.
00:13:30.97\00:13:32.31
I was asked to come in
and I sat in on the meeting,
00:13:32.34\00:13:34.44
I saw, this is
actually not too bad
00:13:34.48\00:13:36.64
and I couldn't see through it
00:13:36.68\00:13:38.18
until I actually talked to
one of their major directors
00:13:38.21\00:13:42.28
or VPs or whatever
the level they were at.
00:13:42.32\00:13:45.95
And I asked the question is,
00:13:45.99\00:13:48.29
what is your focus?
00:13:48.32\00:13:50.13
What is the benefit
of joining this business?
00:13:50.16\00:13:52.69
And he answered me in the way
00:13:52.73\00:13:55.93
that helped me make my decision.
00:13:55.96\00:13:57.30
He basically said, "I
don't focus on any product."
00:13:57.33\00:14:03.10
I just focus on
building my team,
00:14:03.14\00:14:05.67
there's my answer.
00:14:05.71\00:14:07.78
There is nothing in there
legitimate for me to purchase.
00:14:07.81\00:14:10.48
It's all about a membership fee
00:14:10.51\00:14:12.45
and that membership
fee can be substantive,
00:14:12.48\00:14:15.12
can be between 249.
00:14:15.15\00:14:17.39
And right now I
think the price point
00:14:17.42\00:14:18.82
has worked itself down to like
00:14:18.85\00:14:20.32
299 or 249 with some incentives,
00:14:20.36\00:14:23.22
they're doing a
point based system.
00:14:23.26\00:14:24.89
All of these kind of
things come into your mind
00:14:24.93\00:14:26.56
and you get so
confused with the point base
00:14:26.59\00:14:28.80
and the
legitimacy of the business
00:14:28.83\00:14:31.17
and how much money
you can actually make,
00:14:31.20\00:14:33.00
you start, you
start getting so enthused
00:14:33.03\00:14:35.24
about the possibility
of becoming a director
00:14:35.27\00:14:37.37
by bringing on a
total of about 20 recruits
00:14:37.41\00:14:41.18
and that's how you
make your business,
00:14:41.21\00:14:43.14
how much you make your money.
00:14:43.18\00:14:44.78
Now the next step is support.
00:14:44.81\00:14:47.32
Most of the time
it's low pressure
00:14:47.35\00:14:49.92
from a legitimate
business it's low pressure,
00:14:49.95\00:14:52.25
it's not a major
issue, you go out, you say,
00:14:52.29\00:14:54.42
hey, look I'm
happy with the product,
00:14:54.46\00:14:55.82
you can buy it if you'd
like to, it's up to you,
00:14:55.86\00:14:58.26
but I'm giving you
a good recommendation
00:14:58.29\00:15:00.13
on the product.
00:15:00.16\00:15:01.50
If it's a pyramid,
00:15:01.53\00:15:02.86
there's a lot
more pressure to sell,
00:15:02.90\00:15:05.37
there's a lot more pressure.
00:15:05.40\00:15:07.67
They are involved
in the recruiting cost,
00:15:07.70\00:15:11.17
there's a cost
to build your team.
00:15:11.21\00:15:14.78
There's a pressure to teach you
00:15:14.81\00:15:16.81
how to sell this
product a lot more.
00:15:16.85\00:15:19.48
There's a lot of
pressure involved
00:15:19.51\00:15:21.58
when it comes to pyramid
00:15:21.62\00:15:23.28
versus an actual
network marketing scheme.
00:15:23.32\00:15:27.32
Now there are
some other elements
00:15:27.36\00:15:29.19
because if you go to
the Better Business Bureau,
00:15:29.22\00:15:32.63
you can pretty
much get a context
00:15:32.66\00:15:34.30
of what the concern is
may or the concern may be
00:15:34.33\00:15:37.30
with this type of organization.
00:15:37.33\00:15:39.53
For example, the
Better Business Bureau
00:15:39.57\00:15:43.67
may have a report
on a, on a pyramid.
00:15:43.71\00:15:48.14
But the report
may not be very good
00:15:48.18\00:15:50.95
and they're
typically not registered,
00:15:50.98\00:15:53.58
that
organization is not registered
00:15:53.62\00:15:55.48
with the Better Business Bureau,
00:15:55.52\00:15:57.29
but the product that they
sell with comes from a company
00:15:57.32\00:16:00.92
that may be registered
with the Better Business Bureau,
00:16:00.96\00:16:02.89
and it was
interesting to me as you look
00:16:02.92\00:16:04.63
at some of that information
00:16:04.66\00:16:06.96
that, that you saw that
they didn't have that product
00:16:07.00\00:16:12.13
and the
manufacturing organization
00:16:12.17\00:16:14.00
didn't have a very good
quality commitment performance
00:16:14.04\00:16:19.34
to their consumers.
00:16:19.37\00:16:23.11
So those are the little things
that you can start looking
00:16:23.14\00:16:25.31
and saying, wow,
am I being pressured?
00:16:25.35\00:16:28.15
Do I have to build a team?
00:16:28.18\00:16:29.98
Is that the legitimate way
00:16:30.02\00:16:32.05
that I grow my business
00:16:32.09\00:16:33.62
versus selling a
legitimate product
00:16:33.66\00:16:36.32
and or service?
00:16:36.36\00:16:37.69
And one of the things
is always coming my way,
00:16:37.73\00:16:39.76
many times it's...
00:16:39.79\00:16:41.70
well he's a
Christian or he's of this
00:16:41.73\00:16:44.87
or he's a part of
the church community.
00:16:44.90\00:16:47.44
That's why you
should get involved in it.
00:16:47.47\00:16:49.47
Look, if you're going
to glorify your Father
00:16:49.50\00:16:53.07
which is in
heaven by looking at,
00:16:53.11\00:16:54.48
you need to look at all
aspects of what's going on.
00:16:54.51\00:16:58.58
As God gives you wisdom
00:16:58.61\00:17:00.78
and I keep coming
back to Psalms 90:12,
00:17:00.82\00:17:03.79
"Teach us to number our
days, so that we gain wisdom."
00:17:03.82\00:17:07.49
If we now see something
00:17:07.52\00:17:10.39
that mirrors
something in the past,
00:17:10.43\00:17:12.26
it's incumbent
upon us to study it
00:17:12.29\00:17:14.76
to make some kind of
right decision upon it
00:17:14.80\00:17:17.50
and also be able to distinguish
00:17:17.53\00:17:20.94
so you can walk away from it
00:17:20.97\00:17:23.51
knowing that it's not something
00:17:23.54\00:17:25.11
that you should be
necessarily involved in.
00:17:25.14\00:17:28.68
Merchandise buyback.
00:17:28.71\00:17:31.21
In a regular
business, a legitimate business,
00:17:31.25\00:17:33.65
you can always
buyback the merchandise
00:17:33.68\00:17:36.55
or return the merchandise
00:17:36.58\00:17:37.92
if it's not
working correctly for you.
00:17:37.95\00:17:40.56
In a pyramid,
00:17:40.59\00:17:41.92
it's typically
never possible to return
00:17:41.96\00:17:45.23
or it's hard to return or
get your money back from that.
00:17:45.26\00:17:49.46
Typically in any type of pyramid
00:17:49.50\00:17:51.33
they ask you to give
them a cashier's check,
00:17:51.37\00:17:54.37
cash a check or debit card.
00:17:54.40\00:17:57.37
So watch that carefully
00:17:57.41\00:17:58.74
because if it's
too good to be true.
00:17:58.77\00:18:02.08
And once they have
access to your account,
00:18:02.11\00:18:04.05
the money is gone
00:18:04.08\00:18:05.71
and it's very difficult
to get that money back.
00:18:05.75\00:18:09.92
Next one would get to be,
00:18:09.95\00:18:12.25
if you want to get
out of the project.
00:18:12.29\00:18:14.92
The project, getting
out of any type of project,
00:18:14.96\00:18:17.63
it should be or getting
out to any type of business
00:18:17.66\00:18:19.89
should be relatively easy
00:18:19.93\00:18:21.26
if you're not
comfortable with it.
00:18:21.30\00:18:22.66
And any type of
legitimate business offer,
00:18:22.70\00:18:24.90
you can typically get out of it
00:18:24.93\00:18:26.27
if you necessarily
have to but getting out,
00:18:26.30\00:18:28.77
it's difficult or hard to do
00:18:28.80\00:18:31.54
and you're put
through sales pressure.
00:18:31.57\00:18:33.58
I mentioned about
some of the experiences
00:18:33.61\00:18:35.48
I've had dealing
with sales of vehicles.
00:18:35.51\00:18:39.55
I went in and
had to buy a vehicle
00:18:39.58\00:18:42.22
or try to purchase a
vehicle from a company,
00:18:42.25\00:18:46.76
a car company that
had a bad reputation
00:18:46.79\00:18:48.86
and it was very difficult
to leave that organization
00:18:48.89\00:18:51.76
because they put you
under a lot of pressure
00:18:51.79\00:18:53.93
to buy the car,
00:18:53.96\00:18:55.30
the same thing is involved here.
00:18:55.33\00:18:56.80
In any type of pyramid
00:18:56.83\00:18:58.17
you're going to
find it very hard,
00:18:58.20\00:19:00.27
very difficult to get
out of that environment
00:19:00.30\00:19:05.24
because they'll put a
lot of pressure on you,
00:19:05.27\00:19:07.68
and remember I
mentioned this issue
00:19:07.71\00:19:09.84
called critical mass.
00:19:09.88\00:19:11.51
Critical mass is when everyone
knows about this legitimate,
00:19:11.55\00:19:14.78
this type of business project.
00:19:14.82\00:19:16.92
And if everyone knows about it,
00:19:16.95\00:19:18.35
what happens at the
bottom of that pyramid
00:19:18.39\00:19:21.12
is when
everyone that has come in
00:19:21.16\00:19:22.86
and they found it
now at the bottom hard
00:19:22.89\00:19:25.19
to bring more people on to this,
00:19:25.23\00:19:27.93
this pyramid that the
bottom of that pyramid
00:19:27.96\00:19:30.90
begins to
crumble because, you know
00:19:30.93\00:19:32.63
it's not easy for
me to bring anyone on,
00:19:32.67\00:19:34.74
this business is not
going to work for me,
00:19:34.77\00:19:36.50
I've given up my $250 my $500
00:19:36.54\00:19:40.24
and I'm not seeing that
return on the investment
00:19:40.28\00:19:42.64
'cause everyone
else has been reached
00:19:42.68\00:19:44.85
that could be
reached on this in my region.
00:19:44.88\00:19:47.28
So that's why you
find all of these,
00:19:47.32\00:19:50.19
these pyramid schemes you
have there directors and VPs
00:19:50.22\00:19:53.49
they're flying
all over the country
00:19:53.52\00:19:54.86
because they're
trying to get into markets
00:19:54.89\00:19:57.16
that has not been
absorbed by this deal
00:19:57.19\00:20:02.06
and so they can build
their team in those areas.
00:20:02.10\00:20:04.77
They fly everywhere and
then critical mass happens.
00:20:04.80\00:20:07.94
What happens at
critical mass is,
00:20:07.97\00:20:09.97
I no longer can
bring anyone on board
00:20:10.01\00:20:12.77
and if I can't
bring anyone on board,
00:20:12.81\00:20:14.71
the pyramid starts to
collapse at the bottom
00:20:14.74\00:20:17.35
and then it begins to go away,
00:20:17.38\00:20:18.98
so the people at the
top have made their money
00:20:19.01\00:20:21.08
and the people at the
top then make a decision.
00:20:21.12\00:20:25.42
Make a legitimate decision
00:20:25.45\00:20:27.02
to cut this
organization as it is,
00:20:27.06\00:20:30.19
therefore the
three to five year cycle
00:20:30.23\00:20:32.63
then goes away and comes
back in a different form.
00:20:32.66\00:20:37.10
They studied again
to see what happened
00:20:37.13\00:20:39.47
and bring in a different product
00:20:39.50\00:20:41.00
and bring in a
whole different pyramid
00:20:41.04\00:20:43.67
that they need to build
00:20:43.71\00:20:45.11
and then the
thing takes off again.
00:20:45.14\00:20:47.04
Cycles of three to
five, three to six years
00:20:47.08\00:20:50.81
and you'll see that in
many different situations.
00:20:50.85\00:20:53.05
But what people don't realize
00:20:53.08\00:20:55.12
and what people
don't begin to understand
00:20:55.15\00:20:57.82
is that there are repercussions
00:20:57.85\00:21:00.86
even in gifting
or in other pyramids,
00:21:00.89\00:21:04.99
there have been
people that have gone to jail
00:21:05.03\00:21:08.13
but we don't remember it
00:21:08.16\00:21:09.50
because it happened
six to eight years back.
00:21:09.53\00:21:12.47
As you do your
research, you can find that
00:21:12.50\00:21:14.60
some of these have had people
that have been incarcerated
00:21:14.64\00:21:17.94
or have been charged
certain fees through the IRS
00:21:17.97\00:21:21.74
because it has not
been found to be legitimate
00:21:21.78\00:21:24.85
and of course
those things take time.
00:21:24.88\00:21:28.52
So you understand
why they're not worried.
00:21:28.55\00:21:31.09
Those people in government
are seeing these things
00:21:31.12\00:21:32.99
that are going
on and not worried.
00:21:33.02\00:21:34.36
They're monitoring it
00:21:34.39\00:21:35.72
and they'll handle
it at the right time.
00:21:35.76\00:21:37.53
So you can begin to understand
00:21:37.56\00:21:39.66
why it's important
to study something,
00:21:39.69\00:21:42.50
to ask the right question
00:21:42.53\00:21:44.07
and to begin the
process of realizing
00:21:44.10\00:21:46.30
that if you get
involved in something
00:21:46.33\00:21:49.67
that's not legitimate,
00:21:49.70\00:21:51.04
it begins that
spiral of wasting your time.
00:21:51.07\00:21:54.41
And remember this,
you are a demographic
00:21:54.44\00:21:59.21
that is looking at finding
ways to get access to funds,
00:21:59.25\00:22:03.25
because remember
we're spending what we make
00:22:03.28\00:22:05.39
and they know
that's what's going on.
00:22:05.42\00:22:08.09
So they target
those type of individuals
00:22:08.12\00:22:11.09
and say, hey, you look
like you need some money
00:22:11.13\00:22:13.90
and if you get
involved in this business,
00:22:13.93\00:22:17.13
then you will
make a ton of money
00:22:17.17\00:22:18.93
by building your team.
00:22:18.97\00:22:20.40
Watch what they say,
listen to what they say,
00:22:20.44\00:22:23.71
understand that
it's not necessarily
00:22:23.74\00:22:26.81
something you
should get involved in,
00:22:26.84\00:22:28.78
if it has to do more
so with building a team
00:22:28.81\00:22:32.81
and not selling and or promoting
00:22:32.85\00:22:35.38
a legitimate
product and or service.
00:22:35.42\00:22:37.95
And then of course
there are those issues
00:22:37.99\00:22:41.56
about how long
the business lasts.
00:22:41.59\00:22:43.73
There's cycles, three to
five and then they go away
00:22:43.76\00:22:46.80
and they come back
00:22:46.83\00:22:48.16
as a different type of business.
00:22:48.20\00:22:50.97
Profits, the time and effort
to sell a product or service,
00:22:51.00\00:22:55.70
a legitimate product or service,
00:22:55.74\00:22:57.07
there's always
profits in doing that
00:22:57.11\00:22:58.94
and if you manage your
business well you'll do okay.
00:22:58.97\00:23:02.24
But in reference
to pyramid scheme,
00:23:02.28\00:23:05.71
the majority of the people
00:23:05.75\00:23:07.88
in any type of
pyramid will lose money.
00:23:07.92\00:23:11.62
You invest your money,
you buy into the business,
00:23:11.65\00:23:14.86
you are told that
you'll make a lot of money
00:23:14.89\00:23:17.33
and all the time in
their presentations,
00:23:17.36\00:23:19.39
no, no we have not
yet reached critical mass
00:23:19.43\00:23:22.66
because they want you to join.
00:23:22.70\00:23:24.97
The moment you join,
00:23:25.00\00:23:26.43
everyone at the
top of this pyramid
00:23:26.47\00:23:29.44
makes a ton of money,
00:23:29.47\00:23:30.87
those towards the bottom
00:23:30.91\00:23:32.24
that have come
in towards the end
00:23:32.27\00:23:34.61
find it difficult to
sell to somebody else
00:23:34.64\00:23:37.98
and find it
difficult to generate
00:23:38.01\00:23:40.88
any type of income.
00:23:40.92\00:23:42.35
So all I can
really tell you is that
00:23:42.38\00:23:45.75
return on that
investment is low to none.
00:23:45.79\00:23:49.42
So the majority of
people will lose money,
00:23:49.46\00:23:52.56
you are less likely to
have any type of turnaround.
00:23:52.59\00:23:56.26
You can know a
pyramid by the fact
00:23:56.30\00:23:58.33
that they don't focus
00:23:58.37\00:23:59.70
on a specific product or service
00:23:59.73\00:24:02.04
but they look
at building a team.
00:24:02.07\00:24:05.97
The bottom line in
all of this is this.
00:24:06.01\00:24:08.61
A product or
service based organization
00:24:08.64\00:24:12.25
that's been
incorporated the right way
00:24:12.28\00:24:14.18
as a sole
proprietor, as an S-Corp,
00:24:14.22\00:24:16.52
as a corporation, as a nonprofit
00:24:16.55\00:24:18.82
is in business to
provide a service or product.
00:24:18.85\00:24:22.66
If it's a pyramid,
00:24:22.69\00:24:24.03
it's all based on building
that pyramid, that's it.
00:24:24.06\00:24:28.50
If their focus is
on building a team
00:24:28.53\00:24:31.57
and not selling a product,
00:24:31.60\00:24:33.27
it's not really a
legitimate business
00:24:33.30\00:24:35.24
that you should get involved in.
00:24:35.27\00:24:36.74
You're most likely
to waste your time,
00:24:36.77\00:24:40.18
take it from me.
00:24:40.21\00:24:41.54
I have been
involved in it in the past.
00:24:41.58\00:24:44.28
And many of
those didn't work out.
00:24:44.31\00:24:46.75
Unless I came in at the top,
00:24:46.78\00:24:48.35
that's why they
press the urgency
00:24:48.38\00:24:51.12
of getting involved in this
00:24:51.15\00:24:53.22
of doing this quickly
getting included in this
00:24:53.25\00:24:56.16
and now what they're doing
00:24:56.19\00:24:57.76
is they're reaching out
to faith based organizations
00:24:57.79\00:25:00.33
or coming into
different facilities,
00:25:00.36\00:25:02.66
come into your home,
00:25:02.70\00:25:04.03
they do these
great presentations.
00:25:04.07\00:25:05.47
But they will not answer
00:25:05.50\00:25:07.00
the legitimate
questions that you ask.
00:25:07.04\00:25:09.34
They will actually put you off,
00:25:09.37\00:25:11.31
the question, we
don't need to address
00:25:11.34\00:25:12.87
that question right now.
00:25:12.91\00:25:14.24
We'll deal with it then.
00:25:14.28\00:25:15.61
Do they ever deal with it
at the end, not necessarily.
00:25:15.64\00:25:18.71
There are other issues
that you should be aware of.
00:25:18.75\00:25:22.12
This is quite critical
00:25:22.15\00:25:23.82
because there are
concerns that you should have
00:25:23.85\00:25:26.96
when an
individual ask you to sign up
00:25:26.99\00:25:29.22
and then they at
that time say, look,
00:25:29.26\00:25:31.49
if you can sign
up 15 to 20 people
00:25:31.53\00:25:33.63
over the next
two or three weeks,
00:25:33.66\00:25:35.00
I will give you
your money back, is that,
00:25:35.03\00:25:39.17
is that a
legitimate way to do business?
00:25:39.20\00:25:41.84
Is that a legitimate way
00:25:41.87\00:25:44.34
of bringing
somebody into an organization
00:25:44.37\00:25:47.14
without a typical product,
00:25:47.18\00:25:48.74
without a typical
service that you can provide?
00:25:48.78\00:25:52.91
And all you're
focused on is building a team
00:25:52.95\00:25:55.62
because for each
person you bring on your team,
00:25:55.65\00:25:58.42
you get a commission.
00:25:58.45\00:26:00.36
You get an incentive
00:26:00.39\00:26:01.82
and that was
quite interesting to me
00:26:01.86\00:26:03.59
because the
individuals now as you study it
00:26:03.63\00:26:06.56
that get targeted in
any type of pyramid scheme
00:26:06.59\00:26:09.03
whether it be gifting,
00:26:09.06\00:26:10.67
whether it be any type of
other organization is this,
00:26:10.70\00:26:15.17
they target you
because you want money
00:26:15.20\00:26:17.84
which goes back to
my initial thought.
00:26:17.87\00:26:21.74
If you're not budgeting,
00:26:21.78\00:26:23.55
if you don't know
where your money comes from
00:26:23.58\00:26:25.51
and where your money goes,
00:26:25.55\00:26:27.25
then you're
having a specific problem
00:26:27.28\00:26:30.09
because you're likely
to be spending everything
00:26:30.12\00:26:32.69
that you make.
00:26:32.72\00:26:34.56
They know that.
00:26:34.59\00:26:35.92
People who
research your marketing data
00:26:35.96\00:26:38.39
that they get
on an ongoing basis
00:26:38.43\00:26:40.83
know that you
spend what you make.
00:26:40.86\00:26:43.63
So we begin to get into
these lottery type of things.
00:26:43.67\00:26:46.97
We try to get into fast cash
00:26:47.00\00:26:48.90
and they know
that will be sucked
00:26:48.94\00:26:50.41
into any type of fraud
or scam that's out there.
00:26:50.44\00:26:54.44
And if you do that,
00:26:54.48\00:26:55.81
you're the one
that gets caught in that
00:26:55.84\00:26:57.35
because you don't necessarily
have the money to, to do it
00:26:57.38\00:27:01.18
but you find it.
00:27:01.22\00:27:02.58
And when you get into it,
00:27:02.62\00:27:03.95
you find that
you've lost the capacity
00:27:03.99\00:27:06.42
to gain money or a
return on that investment
00:27:06.45\00:27:09.72
because it was set
up in a fraudulent way,
00:27:09.76\00:27:12.29
it's something that you
should not get involved in
00:27:12.33\00:27:16.10
if you ask the right questions.
00:27:16.13\00:27:19.27
If you set up a budget,
if you live by that budget,
00:27:19.30\00:27:23.91
if you have excess
income that you put into savings
00:27:23.94\00:27:28.18
and you put into investments,
you would be far better.
00:27:28.21\00:27:32.21
You would be much happier
if you took that investment,
00:27:32.25\00:27:36.08
that savings and put it
into a legitimate nonprofit
00:27:36.12\00:27:39.79
like 3ABN and gave to
those type of organizations
00:27:39.82\00:27:44.19
that are gifting the gospel.
00:27:44.23\00:27:47.96
I'm enthused about this program
00:27:48.00\00:27:50.13
because pyramid schemes
00:27:50.17\00:27:52.00
and multilevel marketing schemes
00:27:52.03\00:27:53.57
are things you should look at,
00:27:53.60\00:27:55.70
ask the right questions about
00:27:55.74\00:27:58.27
and begin the process
of thinking critically.
00:27:58.31\00:28:00.78
Take that to
the bank, God bless.
00:28:00.81\00:28:02.68