It's illegal. If you do a google search you'll see that a Ponzi/Pyramid/Matrix scheme are all the same. This isn't multilevel marketing like Mary Kay this is a Pyramid scheme. If the site fails to recruit new members to pay their $150 then the person on top and no-one below will get their computer for $150. I believe you when you say that you got a computer for $150 but how many people had to join for you to get yours? All it means is the scam hasn't fallen apart yet and there's still enough stupid/greedy/gulliable people out there who want their's too.
Wow their profit margins must be razor thin as they can't afford a real email address as support is hotmail.com
Registration Service Provided By: http://www.powerpipe.com
Visit: CONTACT US FOR LOW ($6!) DOMAIN REGISTRATION PRICES!
Domain name: matrixh2o.com
Customer Service (email@example.com)
954 Middlesex Road
Baltimore, MD 21221
If it walks like a duck, quacks like a duck and looks like a duck... link goes to pyramid scheme alerts
|Sometimes pyramid schemes use the name "matrix" or "straight line matrix" (and they hardly ever use the term "scheme").
A matrix is any kind of network of positions that people can buy their way into. In an attempt to avoid the tell-tale pyramid shape, spirals, boxes and straight lines are used. They also call it a ladder, a tree or an escalator.
In a straight-line matrix, new recruits' names are placed at the end of the line while rewards are given at the top. For example, www.yourfreelaptop.com rewards one person at the top of their list with a laptop for every 77 new paying signups.
Part of their technique is to withhold showing the entire list until you've already signed up. Only then do you see the 6,000 people on their seven-page list of names.
There is a temptation to think that if you can get 77 other people enrolled, that you will get a laptop, but it doesn't work that way. That would work if you were at the top of the list, but you aren't, and you probably never will be....
The two differences between a classic pyramid scheme and a legitimate business are whether 1) they have a set of real products, and 2) the system of promotion exists to sell the product (vs.the product existing to sell the promotion).
Just having a set of real products isn't enough. They've got to be the driving force behind the company.
The United States Court of Appeals for the Ninth Circuit stated it well when they ruled in Webster vs. Omninutrition International. The Federal Court stated, "The mere structure of the scheme suggests that Omnitrition's focus was in promoting the program rather than selling the products... The promise of lucrative rewards for recruiting others tends to induce participants to focus on the recruitment side of the business at the expense of their retail marketing efforts, making it unlikely that meaningful opportunities for retail sales will occur."
Just as Omninutrition found the "we are just like Amway" defense ineffective, Laptop pyramids will hopefully find their "we are just an MLM" defense ineffective.
Pyramid schemes don't just affect their hapless members. Because they rely on continuous promotion, members are tempted to use unsolicited email, faxes and phony laptop auctions to spread the word.
I fear the "$29 laptop matrix" type of scheme is poised to become more common and better disguised. I'd like to stop this...
<beakmyn's these auction are readily available on eBay.. the I'm sellling a laptop just information on how to buy a laptop for $150>
-Rob Cockerham www.cockeyed.com