Xango, a multilevel marketing company that sells a multitude of products that are supposedly anti-microbial, anti-flammatory, anti-viral and anti-cancer. These products range from juices to powders to ointments. Your standard snake oil.
The reason I've started a thread about this, is because I've seen multiple people around me get drawn into this scheme. It started last summer.
>Be me, a college student who studies economics.
>Meet new people over summer vacation
>While we're out and having some beers somewhere, we start talking about our jobs/studies.
>This guy, who's about 19, starts talking about this entrepeneurship that he's undertaking with a friend.
>Of course I become interested.
>He talks about working as a distributor for a company that's going to change the market with their new products.
>So far nothing too suspicious.
>"And it's great, because we're being coached by people above us."
>Alright, that's pretty standard.
>"And we can move up a tier by recruiting people to distribute under us!"
>This was taking a dark turn.
>He begins to talk about how at some point, you won't even have to do any work and that you can have passive income.
>I ask him what "work" entails.
>Apparently, all you have to do is sell a certain amount of products that you can buy from the company, and that by moving up, you can sell to the people below you.
>He picks up a beerfelt, and literally starts drawing what looks like a pyramid scheme on the back of it.
>Try to explain to him that he and his friend might have been drawn into a pyramid scheme.
>They don't know what a pyramid scheme is.
>Carefully explain to them what it is, and how in the long run they're going to be left missing a lot of money and how this will inevitably end etc.
>They refuse to believe that and go on about how Xango is a legitimate company and so on.
>Elect to forget all of it and just have a good time.
>A couple months later, one of them asks if I want to hang out.
Part 2 in a bit.
>>1292320
Part 2:
Let's call the guy Ramon.
>Sure, why not?
>I come to his house, and he offers me a beer as I step in.
>Alright.
>He shows me around the house a bit, introduces me to his mom and pets and all that.
>Walk into his room and see that there is a whiteboard, a beamer and all kinds of graphs.
>Wat.
>A guy I still know from elementary school steps into the room.
>Apparently, he was invited too.
>Actually have fun catching up with him and talking about our lives so far.
>Ramon has brought a friend of his who is with Xango (his name will be John).
>Ramon and John begin a goddamn sales pitch, talking about how they are all for "self-improvement", being economically independent and, I shit you not, "Tribe-building".
>I thought I was going to hang out with this guy, drink some beers and play some games and now I'm hearing a couple of hours long salespitch.
>It starts with how they were in high school.
>No direction, no motivation and no idea on what to do in life.
>Until they found Xango, that is.
>After hearing their life story, they talk about the products and how mangosteen is the most important discovery in the last few decades.
>As soon as it's done, thank them for the story and compliment them on their presentation skills. (They actually set up a pretty good presentation)
>Together with the other guy, we make up a bullshit excuse on how we have to go now so we don't have to stay around much longer.
>We both agree on that this was all incredibly fishy.
>Over the course of months, hear of a lot of friends about how they got invited for these presentations under the guise of hanging out.
Now, this isn't so bad since they didn't have a lot of succes so far. The only problem is, is that when I go out, and those guys are around, there seems to be a bigger group of them each and every time. They especially go for people that are easily influenced and really not that popular so they can expand the "tribe".
So I decided to look into the company myself.
>>1292330
>>1292330
Apparently, this company has been founded in 2002 and has had an enormous amount of lawsuits on their hands.
Among them were the unproven health benefits of their products (because how the hell is juice going to help with cancer).
Another lawsuit in Italy d.d. 3rd of january 2011 proved that Xango was, in fact, a pyramid scheme and suspended all their activities.
But if that wasn't enough. Guess who was on the board of directors as a "banker"?
Pic related.
Not only was he found out for stealing a lot of money from the company, he's also responsible for the bankruptcy of Phoenix gold firm North American Coin and Currency, a billion dollar company in the 80's. He actually went to jail for this.
So what do? I know of about 12 people who are already working as a distributor for this company.
>>1292331
can you explain what a pyramid scheme is?
>>1292354
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
Try to get a bigger fish on the ass of the company. Maybe get gubbiment on the case too.
>>1292354
What >>1292355 said.
They do offer products, but noone in their right mind would buy them (seeing as a liter bottle of juice is around 45 dollars). The idea is that you buy from the person above you and then sell it for a set price to someone you know. This kind of marketing is dodgy at best. There's also an entry fee, which is somewhat of an indicator of what is going on.
>>1292367
What do you mean by bigger fish? And I honestly wouldn't know how to get the government involved just yet since they haven't been active here long enough to cause real damage.
>>1292331
>what do?
Well OP, if you have those people on Facebook or other social media, you could try to casually share the articles you got the information from. Chances are though that you're going to lose your friends. At this point they are probably too indoctrinated for you to try to influence them.
The whole point of MLM is using people's relationships as bargaining chips to sell overpriced shit. Your friends have already been taught to get away from people who try to antagonise their "endeavours" and make you feel guilty for it.
Also, check below if you haven't already. It's a good cheat sheet to use in MLM argument.
http://www.vandruff.com/mlm.html
