Is Plexus a pyramid scheme or not?

Is Plexus a pyramid scheme?

There are several dozens of articles published that tell us what a pyramid scheme is.

According to the FBI.. 

"Pyramid Schemes

As in Ponzi schemes, the money collected from newer victims of the fraud is paid to earlier victims to provide a veneer of legitimacy. In pyramid schemes, however, the victims themselves are induced to recruit further victims through the payment of recruitment commissions.

More specifically, pyramid schemes—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses. At the heart of each pyramid scheme is typically a representation that new participants can recoup their original investments by inducing two or more prospects to make the same investment. Promoters fail to tell prospective participants that this is mathematically impossible for everyone to do, since some participants drop out, while others recoup their original investments and then drop out.""

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According to an article from the FTC: 

""Here are some signs that the company is operating a pyramid scheme:

• Your income is based mainly on the number of people you recruit, and the money those new recruits pay to join the company — not on the sales of products to consumers
• You’re required to buy lots of inventory
• You’re forced to buy other things you don’t want or need just to stay in good standing with the company

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The U.S. Security and Exchange Commission says: 

"In the classic "pyramid" scheme, participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors. But eventually the pyramid will collapse. At some point the schemes get too big, the promoter cannot raise enough money from new investors to pay earlier investors, and many people lose their money."

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What does the company publish, via Tarl Robinson:

How You Can Earn Big Sustainable Income With Plexus

Here’s an example of the earning power of the Plexus Comp Plan: If you had an organization where everyone sponsored three people all the way down, the numbers would look like this:

In this hypothetical example, if each person sponsors a minimum of 3 Ambassadors, your Pay Points would total 4,893. At the end of the month, if the Pay Points were $3.00, you would earn 4,893 points @ $3.00 = $14,679.00 from the Plexus Comp Plan.

If you trained and supported your people to bring in a minimum of 4 Ambassadors each, the numbers would look like this: you would earn 29,092 Pay Points @ $3.00 = $87,276 per month with the Plexus Comp Plan.

If you trained and supported your people to bring in a minimum of 5 Ambassadors each, the numbers would look like this: you would earn 121,400 Pay Points @ $3.00 = $364,200 per month with the Plexus Comp Plan.

Note: These are strictly hypothetical examples to show you the potential earning power of the Plexus Comp Plan. They are not a guarantee of income. 


What do you think Ambassadors are focusing on: 

Some words from the Canadians:


* Sarah B. is kicking butt this month!!!! Big high five on another sign up!!!

* Hello ladies!! I would like to welcome a new ambassador

* Hey Ladies!! I would like to introduce 2 new ambassadors!!!

* Would like to send out a HUGE CONGRATS to Melissa A. for goin silver today!!! Way to go Hun!!!

* I would like to welcome my first ambassador so I now have a team!!!!....MY MOTHER!!!

* I would like to welcome MaryAnn (my sister) on becoming an ambassador.

* Would like to send a HuGe CONGRATS to Stacey C for goin SiLvEr today!!!

* I would like to introduce Madison for Auddie to this awesome team!

* Would like to give a HuGe CONGATS to Auddie  for goin SILVER today!!!

Doesn't seem like they are focusing on selling products. Turns out.. NOBODY in Canada should have RECRUITED anyone. .lol..

No it is not just the Canadians that pat each others backs and brag about recruiting.

nb. some first and or last names have been removed.


MLM Law: Arizona Business Definitions
State Statutes
ARIZONA
44-1731 . Definitions
In this article, unless the context otherwise requires:
1. "Compensation" includes a payment based on a sale or distribution made to a person who either is a participant in a pyramid promotional scheme or has the right to become a participant upon payment.
2. "Consideration" means the payment of cash or the purchase of goods, services or intangible property but does not include:
(a) The purchase of goods or services furnished at cost to be used in making sales and not for resale.
(b) Time and effort spent in pursuit of sales or recruiting activities.
3. "Pyramid promotional scheme" means any plan or operation by which a participant gives consideration for the opportunity to receive compensation which is derived primarily from any person's introduction of other persons into participation in the plan or operation rather than from the sale of goods, services or intangible property by the participant or other persons introduced into the plan or operation.
44-1732 . Violation; classification
A. Any person who violates any of the provisions of this article is guilty of a class 6 felony.
B. The attorney general or county attorney, or both, shall institute the criminal actions to enforce the provisions of this article.
C. An act or practice in violation of this article constitutes an unlawful practice under section 44-1522. The attorney general may investigate and take appropriate action as prescribed by chapter 10, article 7 of this title.
44-1733 . Sale or contract for sale of interest in pyramid promotional scheme voidable
Any purchaser in a pyramid promotional scheme may, notwithstanding any agreement to the contrary, declare the related sale or contract for sale void, and he may bring an action in a court of competent jurisdiction to recover the consideration he paid to participate in the scheme. In such action the court shall, in addition to any judgment awarded to the plaintiff, require the defendant to pay interest, reasonable attorneys' fees and the costs of the action, less any money paid to the plaintiff as profit in the transaction.
44-1735 . Pyramid promotional scheme; prohibition; defenses excluded
A. A person shall not establish, operate, advertise or promote a pyramid promotional scheme.
B. A limitation as to the number of persons who may participate or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under the plan or operation does not change the identity of the scheme as a pyramid promotional scheme nor is it a defense under this article that a participant, on giving consideration, obtains any goods, services or intangible property in addition to the right to receive compensation.

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