False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes

Author: Robert L. Fitzpatrick, Joyce K. Reynolds
List Price: $12.95
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ISBN: 0964879514
Publisher: Herald Press (October, 1997)
Sales Rank: 84,345
Average Customer Rating: 3.47 out of 5

Customer Reviews

Rating: 4 out of 5
Approaches MLM In A New Light...
False Profits takes a fascinating look at the world of illegal pyramids and multilevel marketing. The book approaches MLM and the MLM industry like no other book I have read. Instead of explaining it from a pure business point of view, it explains it from a psychological, spiritual, ethical and social point of view.

Make no mistake, the author of this book loathes MLM. As far as he is concerned, there is little distinction between most MLMs and pyramid schemes, other than the fact that the latter are illegal. Even if you are pro-MLM though, you must admit that many of his observations are correct, and that the MLM industry in general has a long way to go before it reaches any level of acceptance in our society.

My favorite aspect of the book concerns its look at the psychology of many multilevel marketers and get-rich-quick schemers. It focuses on the guilt trips that these people lay on their own friends and family, their compromise of integrity and interpersonal relationships for the sake of greed, their deception of unsuspecting strangers, and the overemphasis on materialism that has made many of these people morally bankrupt.

Of course, not all MLM participants behave like this. These are largely the actions of "MLM junkies" and hard-core recruiters. Unfortunately, MLM companies and the industry itself often encourage this type of behavior amongst their reps, which has helped to give the MLM industry a black eye over the years and made multilevel marketers looked upon as people to avoid. Hopefully, by recognizing these ugly traits, you can avoid becoming one of these people.

About the only downside of this book is its occasional delve into spiritual and deeply philosophical theories of how MLMs and cults operate. While I have seen many MLMs that resemble cults, and many multilevel marketers that resemble little more than brainwashed zombies, I think that the author's view of all MLMs being tied (somehow) into the new age movement is a bit of a stretch. Not all people get involved with MLM for the same reason, and not all multilevel marketers become blathering idiots. Many do, but certainly not all of them.

Despite the author's occasional forays into the esoteric, the book is quite enjoyable to read. It is obviously very well researched and the culmination of many years of hard work. Although it may go a bit far at times, I think that it should be read by anyone contemplating getting involved in the world of multilevel marketing. It will really make you question EXACTLY why you are getting involved, and whether your involvement is for the right reasons.

Unethical multilevel marketers will absolutely HATE this book. Those involved in blatant pyramids and get-rich-quick schemes will probably want to strangle the author, since he will likely expose them for the shallow con-artists they are. Ethical multilevel marketers will learn how to avoid the pitfalls of becoming a participant in these types of schemes, and the book's lessons will serve as a reminder of how NOT to do business.

Fitzpatrick explains exactly how illegal pyramids work, and exposes many MLMs for what they really are. After reading this book, you should be able to tell the difference between a quasi-pyramid and a legitimate business opportunity. You should also come away with a strong sense of what is ethical and right, and what is not. Ethics seems to be a dirty word to many in the MLM industry, but it shouldn't be. Read this book, and you will likely discover much about MLM, and yourself, that you did not already know.


Rating: 2 out of 5
This book was written to salve the authors' conscience.
It seems to me that Fitzpatrick and Reynolds, who seem to be genuinely sincere and spiritual people, wrote this book to salve their consciences after being involved with The Airplane Game pyramid scheme. "We sought the benefits of prosperity through pyramid schemes and found ruin or, at least, shame." (p. 213)

The book has three parts. The first part is the authors' philosophical musings on the development of New Age thinking. It is mildly interesting if you're into that kind of thing.

The second part is a very selective "history" of the development of pyramid schemes and multi-level marketing. (The use of the two terms in the same sentence is uncomfortable for me because there is a such a vast difference between them.) The description of their Airplane Game experience is intriguing and instructive. But their insistence that illegal pyramid schemes and legitimate multi-level marketing companies are the same thing is unfair and misleading.

The third section of the book is the best part. It is full of references to other motivational literature that is a great service to readers. The encouraging and motivational sections near the end are worth reading.


Rating: 4 out of 5
Good overview of a hopeless field
Reading "False Profits" was one of the factors that made me decide to quit the MLM job I had been in for a year and a half. It showed me that my MLM job isn't really a fantastic opportunity in which I alone happened to be failing miserably. Failure is universal in MLM. Though the company I was in was never mentioned in the book, every MLM technique described in the book was used in my company. This demonstrates how the recruiting and sales techniques are common to every MLM company out there. I never wanted to get rich. I just wanted another job. This set me up for failure right from the start. Only the greediest, most ruthless and most aggressive people can make it in MLM's. To succeed, you have to be willing to ...as many people as possible into a hopeless, money losing job. The authors drag in lots of talk about spirituality, altruism and worthiness of career goals. They do this to contrast most jobs with MLM jobs. To me, this wasn't necessary, but I can see why they did it. The book lacks real organization and conciseness in its presentation of how MLM's are set up and run. But despite this, the book is one of the very best out there for describing the futility of a career in an MLM. I thank Fitzpatrick and Reynolds for helping to cut short my losses in my MLM job. I highly recommend this book for anyone who is in an MLM or thinking about joining one.

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