PAS Scam
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The Prosperity Automated System
The Prosperity Automated System (PAS) is a system developed by
Prosperity Network, Inc. Prosperity Network, Inc is a company based in
California for over twelve years. The founder CEO is Mr. William
Osterhout, a masters graduate from Cornell University. While it claims
to be a Multi Level Marketing opportunity, after further inspection
The Prosperity Automated System is basically a pyramid scheme. You see
the main difference between a MLM and a pyramid is that in an MLM you
are selling other products and not the actual system itself. Although
The Prosperity Automated System offers several different products,
everything I read told me that they pretty much force you to just sell
the system to others. Initially, you have to pay $3895 for joining the
system. The income from your first sale goes to the system sponsor. We
must also consider that everyone who pays becomes a rep for the
company, so theoretically there can be no sales outside the pyramid.
The Prosperity Automated System makes promises of huge returns with no
(or very little) work. They tell you that they will advertise for you,
have a product for you, and even have people to close the sale for
you. My question to them is then; what do you need me for? In my
opinion, you're only needed for your $3,800 dollars.
THE Prosperity Automated System
(PAS) in nothing more than an illegal AUSSIE 2 UP PAY PLAN. To
understand the PAS commission structure you must understand the basic
2UP Plan also called the 1UP Plan. Companies like PAS will go out of
their way to disguise the plan but the basic structure is always in
place and failure is always certain.
1. An Aussie 2UP takes the first two out
of a person’s warm market and pushes the sales up to the origination
sponsor. Because most people can only recruit 2 – 3 people this system
leaves no market at all for the newbee.
2. An Aussie 2 UP is for strong closers
who can sell worthless and expensive products or services. Most of
them will have a service tied to them. Almost no beginners can sell a
package that is worth $2000 - $4000. What tends to happen is that they
will get close friends and family to back them making more money for
the strong closers who get the sales.
3. Most Aussie 2 UPs have an expensive
seminar or class behind somewhere but in PAS they have a super duper
automated “worthless” system.
4. Material or systems offered for most
of the Aussie 2 Up's can be found in public libraries for free or
better stuff can be ordered and found online. PAS is offering nothing
new! A fancy wancy auto responder and pretty capture pages. Surely
this is not worth $3800.
5. NOW comes the reason Aussie 2 Up's get
shut down eventually. People want their money back. In PAS the sales
person got $3000 the company got $800. The sales person won't give up
the money. They company can't so they say go back to the sales person.
Ha! Fat chance for that money back!
6. As the number of people who want money
back from the Aussie 2 Up increases, so do the number of complaints to
Attorney Generals they finally investigate the company and that is the
end of it. The last big one to get shut down was Global Prosperity
Network. (Sound Familiar?) These leaders lined their pockets and are
sitting on a beach in Panama counting money.
7. Unfortunately the Law doesn't move
fast enough and most of the owners and leaders of these systems know
this. These systems are very, very profitable and Heavy Hitters
without a conscience love to promote them. They can literary make
hundreds of thousands of dollars from innocent mothers, fathers,
sisters and brothers who fall for the trap.
PAS Pay Plans PROMISE Money...
Unfortunately some experience net-workers will back them up in lure of
making a quick buck. All Aussie2up MLM pay plans have a 100 percent
FAILURE rate.
Find out WHY.
Then learn HOW to protect yourself from these LOSING pay plan
structures.
The Aussie2up pay plan or the Australian 2up pay plan, however you
want to call it, is a pretty ingenious pay plan type. I didn't say it
was a good pay plan type. It's definitely ingenious. But it's also
very, very troublesome to get involved with. You see, this pay plan
takes some thinking to actually and finally figure out exactly what is
going on with it. It's not brain surgery stuff but it does take some
pondering to figure out just exactly how one is being taken, yes
taken, with this type of MLM pay plan. You see, the Aussie2up is an
MLM pay plan that pretty much is only in existence with some companies
so that the big cheese's and certain leaders in the company make
money. Now this making money in this fashion stuff is very much more
blatant with this MLM pay plan than with other MLM pay plan types.
And how do I know this is true?
Because not one Australian 2up MLM pay plan has lasted more than
several years. They usually burn out or get shut down by the federal
government. Not just some of these pay plan companies. But ALL of
them. 100 percent. Not one bad stone is left uncovered or not turned
over.
And why is this? Because...
Aussie2up MLM Pay Plans are Pretty Much RECRUITING GAMES Brought into
Existence to FUND the Corporate Office or to Help Ensure a Select Few
'Leaders' in the Company Make Money. I'll explain how Aussie MLM pay
plans do this because I was involved with one of these deals when I
first got into MLM. I didn't know any better and I blindly and naively
joined and proceeded to lose money at what was never meant to work in
the long term. Let me save you the same sense of loss that I
experienced those number of years ago. Okay? Good.
Let's begin.
First off, let me just say that I don't know where Aussie2up MLM pay
plans got their name. I can't verify that this MLM pay plan actually
got started in Australia so you'll just have to continue wondering.
But no matter. Where it got its geographical name is irrelevant. But
the '2up' part of it does matter because that is what is at the heart
of Aussie 2up MLM pay plans. You see, the foundation of this MLM pay
plan is that one joins it with the promise to make some fairly decent
return on money spent to join. Of course, as you may have read
elsewhere on this site, this type of recruiting tactic and reason for
joining is basically illegal. But this doesn't stop companies from
popping up every once in a while and starting one of these deals.
Nevertheless...
People join this MLM pay plan type with the expectation that it's easy
to make some big money at it. They're told that all they have to do is
get a few close friends and relatives in their warm market involved
and they're already in the red.
Well, this isn't the way it works out.
I'll detail this.
You see, Aussie2up MLM pay plans survive by charging a person who
joins the deal a usually large sum of money as a 'training bonus', or
'leadership bonus'. They get some typical products or books or tapes,
or all of the above as part of this fee to join. *PAS is a new POP UP
and disguises the books and tapes with a so called auto responder and
capture pages.
Let's say that the cost to join is $3800 U.S. and for this $3800 one
gets a couple of large company training manuals and some cassette
tapes - training tapes and a Prosperity Automated System. This system,
manuals and tapes or what ever you want to call it are given to the
new person so that the person knows 'how to best work this MLM pay
plan and how to get others involved'. And this person who joins is
told that for every person they get involved with them they get to
keep $3000 of the $3800 that that person pays to join. Pretty nice.
After only two people they would be making a profit. And now here is
how everything is made all that much more sweeter to the person
looking to join this money-making (and money-taking) deal.
They're told that for every person they get involved in the deal they
get to keep the $3000 dollars from each of that person's first two
people's payment for THEIR Prosperity Automated System.
I'll give you an example...
You get your great Aunt Hilda to join. And she gets Aunt Jane and
Uncle Bob to join and they each sign up with the $3800 enrollment fee.
Of this enrollment fee which totals $7600 between the two of them, you
get to keep $6000 of that $7600. Pretty nice. You make a lot of money
off of Aunt Hilda's two relatives. (Aren't they also your relatives?)
But it gets even better...
You get to keep the $3000 commission of the first two people that Aunt
Mary and Uncle Bob each bring into the deal. This totals $12,000 you
make off of only four people. And you didn't signup any of them.
But it continues....
You also get to keep the first $3000 brought in from each the first
two people these four people bring into the deal. Another $24,000!
And, hypothetically, this just continues down to infinity. (And to
your hypothetical glee.) That is, for every person brought into the
Aussie2up MLM pay plan that joins from any of these people they
immediately go up to you and you make the 'training' bonus off of
them. But this only applies to the first two people that any of these
people bring into the deal. Only the first two people move up to you.
That's how it got the name '2up'. Two move up... to you.
Now let's detail this some more.
You only get the first two people that join under people you bring
into the deal. You don't get three or more. You only get the first two
moving up. So, say you bring in five people into this Aussie MLM pay
plan deal and each of them bring in five. You only get the first two
of each of these people's five that they brought into the deal.
Essentially, you'd get ten of these 25 people moving up to your first
level. And anyone that the remaining three from each of these people
bring into the deal you get nothing from. Ever. You only get more
$3000 payments when the ten people who rolled up to you do something
and get others to join the deal. When (if) that happens the process
repeats itself and you get the first two of each of these ten people.
Now, exactly what is happening here with this two moving up to your
frontline stuff?
Basically What Happens with Aussie2up MLM Pay Plans is You Are Getting
One Very WIDE First Level. A Very, VERY Long and Wide Frontline. And
NOTHING Else.
You don't get a second level.
Or a third.
Or more.
You only get - if you're lucky, say, 187 people moving up frontline to
you. But remember that on each of these 187 people you would have
earned the $3000 bonus so you would have been paid a good chunk of
coin already from these people you never brought in directly. But
where it gets screwier is that usually, and almost always, these
Aussie 2up MLM pay plans are not meant to be the main pay plan with a
company. They are usually a recruiting/training type bonus plan.
They're touted as being for the 'leaders' in the company. The doers.
So what this bonus MLM pay plan stuff means is that there usually
isn't a monthly product purchase associated with Aussie2up MLM pay
plans. The monthly product purchase stuff is already required for the
main pay plan which most likely is not an Aussie2up MLM pay plan.
You just make money by people joining an Aussie2up MLM pay plan. Not
money from monthly ongoing product autoship purchases.
So what this means for you is if the 187 people who are on your
frontline never recruit anyone into your Aussie2up MLM pay plan, then
you don't make one more cent from them. Nothing.
Nada. Zilch. Zippo.
Why?
Because there are no monthly product purchases through autoship, or
whatever the automatic purchasing method that is set up is called, to
ensure they buy product or services from the main company every month.
You did make money when the first two people joined from each little
group beneath you. $3000 for each person buying the PAS System But
after that... the gravy train hit the end of the line.
So what does this all mean?
This basically proves that this is one big recruiting game. And this
is what makes the government so intent on pursuing and shutting down
these MLM pay plans. Sure it's good for the few who get in on the
frenzy when the company's new Aussie 2up MLM pay plan is announced at
the annual company conference. These early few get all the $300
recruiting bonuses and continue to get them as the momentum builds.
But once things start to slow down after a few months, or perhaps a
year, the checks start going down and eventually stop altogether due
to the nature of this recuiting MLM pay plan. Now, to add salt to the
wound, there's another not-too-well-known aspect that works against
distributors with Aussie2up pay plans.
You see, how most companies set these pay plans up is that they don't
make the $3800 training package you 'need' when you join a mandatory
purchase. They know that this is definitely illegal and too easily to
spot as a recruiting game. So, what they do is they just let people
join for free or for a small fee and then they hammer them, hardly or
softly, to buy this 'training' package so that upline people can make
their bonuses from that $3000 income coming in.
So what do these just joined people do? Let me ask you, what would you
do?
You think to yourself...
"Hmmmm... I need to get more than two people involved before I have
people I keep who then get their two and their two and so on. So, I
need to get at least three people beneath me before I can potentially
start making the $3000 bonuses from each of the first two from them."
Now, would you ask and get your best two contacts to join and then let
them roll up to your upline sponsor? I thought not. You'd be quite
daft (to put it nicely ) to give away your best contacts to your
upline. Because if they happen to be your next leader and recruit 889
people into the deal you don't make one cent off of them because they
rolled up to your sponsor. So what do you (and most who have given it
a modicum of thought) do instead?
You get two people who you know won't turn into any sort of leader or
doer or go-getter and you get these two people to join first. These
two people will roll up to your sponsor and THEN you get that leader
to join in your third place and you then start making money off of the
889 people she gets to join her group.
So what happened here?... what did
you give your sponsor?
Can you say 'deadwood'?
Useless contacts?
Dead possibilities?
Now let me ask you another question.
If the people you get involved with this deal have any wherewithal
about them, what type of people do you think they'll get involved as
their first two signups?
That's right.
You'll end up getting your own collection of deadwood.
And this is exactly what happens and has happened over and over and
over again with these short-lived Aussie2up MLM pay plans. People have
their dead contacts roll up and they keep the meat for themselves.
And, finally, who benefits from all of this activity because they get
to keep the remaining $800 from the $3000 training bonus? The company.
Pretty slick, aint it?
Many Have Fallen Victim to Aussie2up MLM Pay Plans and Many Have Lost
LOTS of Money with One of These Puppies Because They Didn't Know What
They Were GETTING INTO. But now you know. You've learned from my
experiences with this recruiting game. Oh, and in case you were
wondering. I didn't get too involved with the deal I was in that had
an Aussie 2up MLM pay plan. The president of the deal eventually ended
up in jail less than 12 months later. And as of this writing (years
later) he is still in federal prison to the best of my knowledge.
So to sum up... I hope with the information and insights that I've
shared with you above that this doesn't happen to you now.
At least if you now join or are in an Aussie2up MLM pay plan you now
know what the real deal is going down and aren't going into it or
doing it blind. You're informed and you know more than the vast
majority of people who do join these 2up MLM pay plans. Remember, by
doing your research and learning all you can about the differing MLM
pay plans you can get more informed without first getting beat up out
in the real world of MLM and MLM pay plans.
(The follow information was pulled right
from the Internet)
Luis Garcia
luis@honeyfrog.com
Phone: (540) 320-1045
125 North Main Street
Blacksburg Virginia, 24060
PAS Scam
Prosperity Automated
System
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