Tuesday, September 15, 2009

eFusjon: Pyramid Scheme or not?

I live in Utah. In my opinion, we are a gullible people. My older brother once joined a pyramid scheme where he had to pay $500.00 to "buy in" to the company and get a stake in the ground. He pushed my dad and a few other family members to join with him and also pay $500.00. It was scary for me because I had never seen my brother so motivated by something like money and business. It didn't seem like him at all. He pushed me, but I told him that he was more important to me than $500.00. Eventually, he let the pyramid company fade from his life... but it always left me wary of what a pyramid scheme can do to someone's personality and emotions.

I figured that if I was going to be blogging about pyramid schemes, I should do some research. I looked up a basic definition of a pyramid scheme, and this is what I found.

A successful pyramid scheme combines a fake yet seemingly credible business with a simple-to-understand yet sophisticated-sounding money-making formula which is used for profit. The essential idea is that the mark, Mr. X, makes only one payment. To start earning, Mr. X has to recruit others like him who will also make one payment each. Mr. X gets paid out of receipts from those new recruits. They then go on to recruit others. As each new recruit makes a payment, Mr. X gets a cut. He is thus promised exponential benefits as the "business" expands.

Some network or multi-level marketing businesses, which sell real products and rely on the price differentials between the manufacturer's dispatch ramp and the retail counter, may verge on the borderline between "smart" and "scam". When a pyramid does involve a real product, such as Holiday Magic cosmetics in the United States in the 1970s, new "dealers" who've paid enrolling fees are encouraged, in addition to selling their products, to become "managers" and recruit more new "dealers" who will also pay enrolling fees. As the number of layers of the pyramid increases, new recruits find it harder and harder to sell the product because there are so many competing salespeople. Those near or at the top of the pyramid make a lot of money on their percentage of the enrolling fees and on commissions for the supplied products, but those at the bottom are left with inventories of products they can't sell.

This sounds to me like the new energy drink company "eFusjon". I have recently taken to learning more about this company purely out of odd curiosity. I am amazed at how someone who becomes involved in this program can change into someone that they normally are not.

I listen to the videos on the eFusjon corporate YouTube channel and shake my head in disbelief. These people will deny that they are a pyramid scheme until they are blue in the face. How can you deny you are a pyramid scheme when your "compensation plan" looks like this?

I really hope someone who sells eFusjon comes in and tries to grab me. I am so prepared with knowledge about their scheme that I will be able to fight their blind stupidity with vigor and vim!

3 comments:

Unknown said...

Bu bu bu but you can make a lot of monies-just sign up and pay the fee. Can you say Melaleuca? However, it does have better products than EEEEEfusion. The first person starting the scheme benefits, so definitely don't try efusion.

Derek said...

What sparked your interest in this company?

Sergio said...

Hi,

Efusjon is an MLM company which combines their energy drinks with a business opportunity to allow people to earn income when they re-sell them. Recently, their publicity has greatly increased mostly due to their popularity in social networking sites.