# General Business Category > Scam Alert Forum >  how about this one...is it a scam or what?

## Candy Bouwer

this looks fishy...anyone had this one ? 




> How to become a millionaire in just three (3) months! 
> Read this letter carefully, you will be glad that you received it 
> 
> My name is Len Nathan. In December 1998 my printing business went bankrupt because of the poor state of the economy. My 2 cars were repossessed and debt collectors were hounding me like you wonÃ¢â¬â¢t believe. I owed R885 600-00 and insolvency or prison was my only future. My family, my reputation, sanity and my life was at stake. (I became very ill). 
> 
> In January the following year I received a letter advertising How to make R3,2 million within 3 months for an investment of only R300-00. I thought it was a joke! R3,2 million? Impossible; absolutely impossible, never in a million years! I spoke to my advocate and friends about it and they said I would be stupid to try it and would be wasting my time. But after 3 days of desperate struggle in court to stay out of jail, I decided I had nothing to lose. 
> 
> My family and I enthusiastically (out of desperation) grabbed the slim opportunity available to us and sent R100-00 to each of the 3 names on the Become a millionaires list We also distributed 3600 photocopies of the letter in the Newlands area by hand!
> 
> ...


Comments anyone?

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## Dave A

What do you know - a genuine pyramid scheme which has been around since B4 internet has entered the digital era.

I seem to recall the old Post Office had legislation passed that declared posting these letters illegal. And nowadays pyramid schemes are illegal - but what the heck, the law's not stopping illegal medicines....

Mind if I just slip a few of my bank numbers in there and then you guys and gals can go for it - just don't forget to put the R100 into my account first  :Big Grin:   :Devil2:   :Big Grin:

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## Chris Bouwer

Yup, this is a re-hash of a very old one
They actually work for +- 50% of the first few levels, then they fade I know, I've been there!
Sorry,I forgot to put your R100 in the envelope and I,ve already sealed it!

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## duncan drennan

We actually got one of these in the post the other day!

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## Candy Bouwer

Well watch out guys it's doing the rounds again...and more than likely it's going to catch someone who has'nt seen it before...I think if anything comes along we whould report it here to give the guys out there fair warning...some of us are blond and don't always recognise a con...speaking for myself ofcourse.

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## pietpetoors

> a genuine pyramid scheme


Actually it is not a pyramid scheme. A pyramid scheme is something where you get people to pay/invest money and you pay others their interest/commission using the new investors' money and there is normally no product or service.

People seems to call something they do not know what it is or something which looks fishy a pyramid scheme.

The thing you described is a Chain Letter which is also illegal in South Africa according to The Dti. So although it is not a pyramid scheme, it is still illegal.

I wanted to upload the DTi Document which explains it but this site's limit for pdf docs is on 97Kb and the document is almost 1 Mb big. So I just uploaded it to my own server. If you want to you can view it at http://www.passive-income.co.za/chainletter.pdf

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## insulin

I sometimes wonder about these âpay me this and you will be richâ Systems think about it logically; if there is a way to urn millions by doing almost nothing why will people play the lotto? Fact is anything promising fast money for just a R100 must be considered fishy! But again desperate people do desperate things. Desperation itself is an illness and the victims will conclude âwhat do I have to loseâ Well if it is indeed illegal then I fear you have a lot to lose.  But again why do we need money to start with. Fact is that banks use us as salves as do industry. Only a Fool will think that freedom comes with large amounts of money. Only 0.5% of the worldâs population is truly free because they not only have wealth they have sustainable wealth that perpetuate indefinitely.

 :Confused:

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## pietpetoors

Hi Insulin
For some reason people crave these systems where they do not have to do anything or almost nothing.

One sad thing I see is that people only start looking for more income once it is too late. Most online businesses or MLM businesses takes time to develop and takes time to bring you a good and steady income.

So instead of going for something that is legitimate and that can really make them money, they go for these illegal stuff because they need a quick buck.

What amazes me even more (sorry, I am one of those MLM nuts) is that when you shows people something legitimate where they have to recruit more people in order to make good money, then they will ask questions about the legalities and pyramid schemes etc. But if you give them something like this chain letter they just jump in and go for it.

I started to think that people have all these concerns about MLM because they are too lazy to work and then use their concerns as excuses.

Some of the opportunities on the Internet does work and can bring you a good steady income. The problem is that it takes time to build such an income. Two things happen:
1. Because people needed extra money yesterday, they give a good opp a go, try it for a week or two, do not see the millions rolling in and then quit and call it a scam.
2. Some people involved in good opportunities unfortunately promote it as something where you can "sit back and relax and the money will roll in" only so that they can easily recruit people. Unfortunately for then this does not work either, because if you recruit somebody on that basis point No 1 above will happen.

But in this case, the chain letter, it is illegal in South Africa but people fall for it because it promise a quick buck for little to no effort.

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## Dave A

I'd suggest chain letters that solicit money like this one is a form of pyramid scheme.

Bear in mind that not all chain letters solicit money. Sometimes they bring good luck and save you from flea infestations in uncomfortable places.

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## garthu

I agree with Piet. People in SA do not like MLM and do not trust it and generally for the wrong reasons - like said it is often misrepresented. It's supported though my some of the most influencial and wealthy people in the world, likes of trump, Kiyasaki, Robins etc (oh and me  :Big Grin: )

Something i notice that stands out with SA is MLM - as a good start is to introduce family/friends. SA (in fact Africa as a whole) does not like that at all. To concerned with peoples opinion of them which comes first always. The concern of what the Jones's think often outways potential return. Image...image...image... and then after that comfort zone. Something else i don't get is affiliate marketing. People embrace that - it is MLM! Argue it anyway you want, the guys at the top, make the money, the affiliate can seldom make more than them - poorer of the MLM plans if you ask me, but yes there are some good ones likes of google and 100's others. But the term affiliate is accepted, not mlm (no doubt this will start a debate but just so clear - just an opinion!)

As for the chain letter., illegal, horrible, pyramid - i would think seriously twice before sending your bank details to 1000's of people by email (as it could end up like that)

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## pietpetoors

Garth, you touch an interesting point.
If you do an online MLM where you sign up and get our own unique link, like for example BeMotivatedToday, and you promote your link it is in fact nothing different from an affiliate program.

The only difference there is, is that with an online MLM the company split the commission between a number of people (9 in above example) instead of giving it to one person.

But what always amazes me is the point you mentioned. The moment you ad more levels people put on their eye caps, jump up and down, scream pyramid pyramid without even knowing what a pyramid is.

In my opinion an online MLM that works this way is nothing else than a multi tiered affiliate program.

(By the way, the owner of *BeMotivatedToday* do not like to call his business a MLM, he says it is a multi tiered affiliate program and not a MLM, I agree with him)

I have even seen people frown upon a 2 tier affiliate program. I cannot understand why it is so hard for people to accept that it is OK for them to make money from other people's efforts.

Talking about the guy at the top getting the most money, this is also a very good excuse people always use not to get involved in MLM.

*Have you ever concidered any big stable well run company*. 
We can call the company in our example Pick & Pay, Vodacom, whateveryouwant, etc. 
At the top we have the CEO, then we have the directors like the marketing, financial, etc directors. Then perhaps your provincial managers, followed by your store managers, followed by the floor managers followed by the people who is actually doing the job, the workers.  So can you see that we have a perfect 6 levels pyramid scheme. Now, who is doing most of the work? Level 6 of course, the workers. *BUT,* who is earing the most money? *The guy at the top of course!*  :Big Grin:  So is this illegal? We have a pyramid structure *AND* the guy at the top earns the most?

If people remove their eye caps and stop listening to their neighbours, brother, mother in-law, etc there can be much more wealthy people in this country.

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## garthu

Yup agreed, absolutely... companies (and i also run one so guilty) are the largest MLM culprits, just not called MLM, called a job  :Big Grin: . You and i agree on the same points, no doubt...

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## 3x-a-d3-u5

What  I don't understand is this whole system works on honesty. (I'm not a pessimist just cautious. In fact most times I'm usually too trusting  :Wink: ) Why on earth would one want to pay those people when you can fill in 3 names of your own 3 bank accounts and get all the profits. If there was a way to only send the letters to other people when you have paid it would be fool proof  :Stick Out Tongue:

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## pietpetoors

:Big Grin:  :Big Grin:  :Big Grin: 
My thoughts exactly.
There are hundreds of versions of these letter and I actually was involved in this many many years ago before the Internet when we still did it by normal mail. At the time I was a student and was not aware that such a good idea was illegal.

So some of the letters said that you must remember, if you cheat and fill in your details where it does not belong, bad luck will fall upon you.

Others said that you must remember that it would not be fair to others and put yourself in their shoes, what would you do if others do that to the letter you send them. 

Then on the electronic side I saw one letter was sent in PDF format and you have to use your email address as ref when you make the deposit. The guy will then email you the word version so that you can edit it, create a pdf and then spread it. BUT I received that letter in word format so obviously somewhere along the way people did not know how to create pdf files or did not know what to do. Even if it is in pdf format you can still print it out and re-type it or scan it in with character recocnision.

So I do not think there is a way you can control it 100%

What I can also tell you is that I think 80% of the people will be honest and follow the Instructions and only 20% will have the entrepreneural spirit to get more out of it.

If I look at the junk people forward you, perhaps you can add a line saying "Remember not to cheat, this document contains an automatic tracking code and it will be detected". I mean if people can believe that Microsoft, CellC or whatever other companies can track the stupid email you have to forward in order to get a cell phone or $20 per email you forward, then they will believe that as well.

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Graeme (01-Mar-09)

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## 3x-a-d3-u5

I've been thinking about this. If there was a certain way to ensure that you and the 'upline' get paid would you go for it?

Sorry to wake a sleeping dog, but I've just had an idea.  :Wink:

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## Dave A

Other than shuffling money around, how is it adding value to the world?

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## garthu

None! Thats probably why they just dont work. In theory, it looks great on paper but you are not giving money for anything so why do you, but you will gladly pass the letter  :Roll Eyes (Sarcastic):  I'd feel better gving the money to SPCA, at least i know the benefit

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## CharlotteB

Hi there,
In reply to this "old" so called money spinner, don't even bother. I know of quite a few people who were targeted and guess what. They all lost there money.

CharlotteB

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## insulin

Youâre are overestimating honesty and underestimating greed. Facts are there are real-world ways to generate wealth it is easy simple and effective... It is so simple to make a million it is funny... But the thing is: who gets that million first. I want it because I have this and that going but you want it because you have that and this going now multiply this with your targeted investment community and you have disorder lawsuits and bust goes the millions that could have helped us all. 

The fact is wealth generation is extremely simple BUT it if you factor in the human mindset everything becomes a mess. Scam or no scam humans are unpredictable... The reason why big companies make big money is because! They are in control! It is simple If you have control you have wealth generation! Lose control and bust goes the bank!  

 :Cool:

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## Dave A

I'm trying to go fishing here for more details at the moment. But it's much the same thing.

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