Note I waffle on a bit here. But I’ll list my resources so you can check them out yourself
- http://skeptoid.com/episodes/4176 (there is an audio podcast there you can download and listen to)
- http://www.ronanobrien.info/xocia-is-a-scam/
- Contact me if you’d like some more
Xocai is based on multi-level-marketing, which is a perfectly valid and legal marketing method. However most of the time it is used in a very specific way. To take your money.
While I’m sure that you went to a meeting where they hyped up the product, and showed you some of the people that have made millions off of it. What they probably didn’t talk about are the mathmatics behind it. Most M-L-M schemes work on the principle that in order to make money, you don’t have to sell the product, you just have to recuit a pyramid of people under you, who will then either buy the product, or recruit people under them…. and so on.
However if you look at some simple maths behind it you’ll see that it won’t add up.
So lets say you need to recruit 5 active people to break even, people who will buy/sell the product or recuit new people. Not unrealistic, considering that most of the people you sign up will never really be active. Well do the maths on that. if you have 5 people at each step of the way, After two steps, where you have recruited 5 people and each of your people have recruited 5 people. Thats 5×5=25 people. Now how many steps do you think you are from the origin?
Lets say your 10 steps down. Not unrealistic. The company recuits a few people and they recuit a few people and so on, until the rep comes to ireland. At this stage there are over 282,475,249 people involved 5^10. Going purely on active people. At step 12 there will be 13,841,287,201. 13 Billion people. Double the population of the earth.
While this doesn’t have a major point in and of itself. It shows that the maths that they showed you is unrealistic. It cannot work in the way they have said. However if you get in early, you can make money. But the chances of it happening are very slim.
Also the fact that the boxes cost €150 each. Why do you think it is so expensive? Becuase it is so good? NO. There are plenty of better products that boast the same qualities but they are much cheaper. It costs so much so that the manufacturers can make money off of selling it to you, their distributors. Not the customers. No customer in their right mind would buy chocolate at €5 per 6g (which is the figure I’ve heard bandied about). So they make it mandatory for their distributors to buy a box a month. Thats over a grand a year, which i can gaurantee you is a massive mark up on the cost of the product.
They also require you to buy product so that they just about escape the pyramid scheme classification.
A couple of MLM companies post their distributors income. And over 99% of them loose money. Not even break even. But loose money. Precisely their initial investment, and their monthly purchase. which in your case is over a grand a year. (sourced from the podcast listed above on skeptoid.com)
If I’ve piqued your interest please read/listen to my sources at the top. They go through the details with much more detail and better info than me