Comments on: Perma-Glaze MILLION DOLLAR PYRAMID PLAN (Apr, 1964) http://blog.modernmechanix.com/2008/10/27/perma-glaze-million-dollar-pyramid-plan/ Yesterday's tomorrow, today. Fri, 10 Feb 2012 22:56:27 +0000 hourly 1 http://wordpress.org/?v=3.1.4 By: Eliyahu http://blog.modernmechanix.com/2008/10/27/perma-glaze-million-dollar-pyramid-plan/comment-page-1/#comment-1062155 Eliyahu Tue, 28 Oct 2008 23:05:05 +0000 http://blog.modernmechanix.com/?p=5913#comment-1062155 Everyone needs to have a "business" where they turn their church membership list into a marketing tool and view family reunions as business opportunities... Since normal business concepts like market saturation and pre-qualifying new dealers before signing them up don't apply, it's no wonder that 95% of the people who get sucked into these things lose money. In theory, once everyone in the world is signed up for a pyramid scheme, the "upstream" dealers will all get rich. Of course, the last person to sign up really gets it in the shorts... Everyone needs to have a “business” where they turn their church membership list into a marketing tool and view family reunions as business opportunities… Since normal business concepts like market saturation and pre-qualifying new dealers before signing them up don’t apply, it’s no wonder that 95% of the people who get sucked into these things lose money. In theory, once everyone in the world is signed up for a pyramid scheme, the “upstream” dealers will all get rich. Of course, the last person to sign up really gets it in the shorts…

]]> By: Mike Gutman http://blog.modernmechanix.com/2008/10/27/perma-glaze-million-dollar-pyramid-plan/comment-page-1/#comment-1062147 Mike Gutman Tue, 28 Oct 2008 18:57:40 +0000 http://blog.modernmechanix.com/?p=5913#comment-1062147 Like all legal pyramids, the product is what makes it legal even though as far as I can see the schemes would work without the product. The real money maker is in getting others to join as your sub dealers. You get money from them in joining and then a percentage of the sales they make. These dealers that you manage in turn try to get yet others to buy in. Each level pays a percentage of all the money for memberships and products up the line. Names like AVON, Mary Kaye all follow this principle. These plans are usually characterized by having big rallies where awards and kudos are given for performing well. Note pink Caddies for Mary Kaye winners. The products usually are good, but considering all the commisions, prizes and expenses, one would have to conclude that the products heavily marked up. From my experience the big winners are few in number and the vast majority make very little or actually lose money and interest and leave. However, in the meantime what they've put in has made the big guns richer. Like all legal pyramids, the product is what makes it legal even though as far as I can see the schemes would work without the product. The real money maker is in getting others to join as your sub dealers. You get money from them in joining and then a percentage of the sales they make. These dealers that you manage in turn try to get yet others to buy in. Each level pays a percentage of all the money for memberships and products up the line. Names like AVON, Mary Kaye all follow this principle. These plans are usually characterized by having big rallies where awards and kudos are given for performing well. Note pink Caddies for Mary Kaye winners. The products usually are good, but considering all the commisions, prizes and expenses, one would have to conclude that the products heavily marked up. From my experience the big winners are few in number and the vast majority make very little or actually lose money and interest and leave. However, in the meantime what they’ve put in has made the big guns richer.

]]> By: Tom http://blog.modernmechanix.com/2008/10/27/perma-glaze-million-dollar-pyramid-plan/comment-page-1/#comment-1062137 Tom Tue, 28 Oct 2008 13:31:42 +0000 http://blog.modernmechanix.com/?p=5913#comment-1062137 Actually, I think there is a subtle distinction. A Ponzi scheme involves paying initial investors a profit from subsequent investors' investments. A pyriamid scheme is where an new investor sends money to an earlier investor, who sends a cut to an even earlier investor, who sends a cut higher up. The new investor is supposed to find his own investors to send him money. This seems more like MLM, like Amway, which could be considered a legal pyramid scheme. I have nothing against it, just that you really need to be the kind of person who likes to sell stuff to your friends. Actually, I think there is a subtle distinction. A Ponzi scheme involves paying initial investors a profit from subsequent investors’ investments.

A pyriamid scheme is where an new investor sends money to an earlier investor, who sends a cut to an even earlier investor, who sends a cut higher up. The new investor is supposed to find his own investors to send him money.

This seems more like MLM, like Amway, which could be considered a legal pyramid scheme. I have nothing against it, just that you really need to be the kind of person who likes to sell stuff to your friends.

]]> By: Don http://blog.modernmechanix.com/2008/10/27/perma-glaze-million-dollar-pyramid-plan/comment-page-1/#comment-1062135 Don Tue, 28 Oct 2008 12:13:48 +0000 http://blog.modernmechanix.com/?p=5913#comment-1062135 Another Ponzi schem; named after Charles Ponzi of Boston who tried to get away with his in 1920 . . . . Another Ponzi schem; named after Charles Ponzi of Boston who tried to get away with his in 1920 . . . .

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