On Friday 14 September 2007, Margie James wrote:
> I have two questions:
>
>
>
> 1. Since the money "Team" makes is a separate business and no
> compensation plan that goes all the way to the end of a line of
> sponsorship, could it still be considered an illegal pyramid then.
> It is only paying a few top people. That could qualify just a plain
> old business with the higher up pins (managers) earning a wage.
Yes. You have one or a few people at the top, with a layer under them
with another layer under them and so on. Just because those at
mid-levels don't make money doesn't mean it's not a pyramid.
> 2. My friends are going to a team function next weekend
> somewhere in south Florida, near Orlando I think, the subject is so
> raw for us that she only gives me bare minimum information. Why
> would they be going to a function? There is no product to sell, I
> thought they couldn't discuss Quixtar at functions, what is the
> purpose of still having/going to one of these functions???
The officious answer is that it's for training. They're being told they
can't build their business without this function and it's the one that
will make it all work for them. They *have* to go or they'll fail.
Now let me run the numbers as I have so often for an example. I'll do
one I did more math on. MY ex-gf was going to one with 5,000 - 8,000
people. Let's say 6,000. It's still low end but it makes the point.
That's 6,000 IBDrones at $100 a pop, or $600,000 coming in. The
coliseum probably costs about $25,000 for the weekend (I checked with
the local one on that, since they can seat 11,000 or more people).
They need insurance, which someone here figured at about $5,000 for the
weekend. Cost so far: $30,000. Add advertising. Oh, wait. It's
advertised through their Quackstar voice mail and in the CDs IBDrones
pay for. Okay, forget it. Then there's people to work the booths and
everything else. Oh, wait. I forgot. The IBDrones that are supposed
to be doing so well are offered the chance to be lackeys for the
weekend and it's a status job. So I guess there's no labor cost.
Then add all the dealer tables. Each dealer (if it's like any other
conventions) pays the convention for the space. Then there's hotel
reservations. The king pins call the hotels and say, "I'd like to book
50 rooms," or even use bigger numbers. They can deliver, the hotel
knows those rooms are full, and can drop the price significantly, but
that price drop never makes it to the IBDrones. The king pins keep the
difference. They get $600,000, pay about $30,000 in expenses, and
still make over half a million on the main event, plus what comes in on
the hotel reservations and all the other ways they charge IBDrones for
those functions. It's true the money doesn't go to the convention
runners, but to the speakers and such, but it comes back when the king
pins throwing it are invited to talk at other conventions.
All this, including well over half a million in clear profit on an event
they claim they make no money on. Either they are rotten business
people or liars.
That's on 6,000 IBDrones. Some functions are 20,000 IBDrones or more.
Just a quick number and you can guess the rest: 20,000 IBDrones at $100
each is an income of $2 million. Compared to that, the coliseum rental
is not even worth mentioning.
Hal
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