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Old 01-04-2005, 06:58 AM   #14
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Join Date: Mar 2002
Location: Baltimore/Florida/Bermuda
Originally posted by DarkeWolf
By law, no they are not an illegal pyramid scheme. Even tho they function very much like one...
hehe... silly guy.. read up on your state's penal code The FTC would certainly disagree with you.
State officials independently file cases in state court, often under specific state laws that prohibit pyramids. California defines pyramids as "endless chains" and prohibits them under its laws against illegal lotteries.(9) In a slightly different vein, Illinois classifies pyramid schemes as criminal acts of deception directed against property.(10) Some states like Georgia prohibit pyramid schemes under a statutory framework that regulates business opportunities and multilevel marketing.(11)
Also, consider the the statement below

I use to be a Matrix Owner of 3 sites. And recently I close them due to the fact that there was just to much competion out there for me to stay in business. Yes I realize that competition is part of every business, but usually you do not have to compete against nearly 300 sites out there that are just like yours. So if you are a Matrix Customer thinking of opening your own Matrix site, please do not. You will only cause yourself unneeded problems, and you will soon have to shut down your sites.

Now when I started my sites I thought it was a good way for people to purchase quality ebooks and wallpaper and get rewarded for it. So after doing research and being a Matrix customer myself, I started one site. It was, this was my first site and it had a shaky start to say none-the-least. Then after advertising in the forums and on ebay and yahoo and a few other places I started getting more business, but still I had to compete with numerous other Game System oriented Matrix sites. So I decided to open up a strictly cash Matrix site, called, and with this site and the low amount of money required to join, I had a site that took it a little bit more money than my Matrix--One site. But still I was not making very much money off of either sites. In fact I was making more money being a Matrix Customer than a Matrix Owner. Now realizing that ebooks were not a great choice to sell on a matrix site, I created another site called and sold Desktop Wallpaper that I created that was quite unique. But by the time I created that site, it was to late, to many sites were out there and there were more popping up every other week it seemed.

So looking at how I was not making hardly any money, I chose to close down. Now even though I had it in my TOS agreements that my customers agreed to before they purchased that there would not be any refunds, I chose to honor the refunds anyways, but realizing this I would not have enough money to refund everyone. So I waited until I did have the money to refund everyone before I closed up the sites. My projected date for closing was August 31, 2003. Unfortunately before that date at the beginning of August, I was contacted by Consumer Affairs that a complaint had been filed against me not by one of my customers but by a member of this site, who believed he was acting in good faith, and reported my site as a Pyramid Scheme. Now of course in Tennessee it is illegal to operate a Pyramid Scheme business. So after I received that letter I decided to close my sites early and consult a lawyer. I consulted 2 lawyers for which one was not 100% sure my sites were illegal more like 80/20 sure it was, but the other lawyer was 100% sure that they violated Tennessee state law against Pyramid Schemes.

Now I have been a strong supporter of the Matrix system, and I am in no way becoming a hypocrit, but perhaps the Matrix model is not the best business plan, and I have realized it is not, but sometimes you make bad decisions. And so I have done. And as always I take responsibilty for my actions. So in short, do not open up a Matrix site. If you must, do not do so without consulting with more than one lawyer in your area. It will be beneficial for you. Plus keep in mind that no matter how good your plan is, selling tangible products as some think will save the matrix community, the business model is flawed. So you should work on a way of making the business model more legal, by either consulting with your local Consumer Affairs office or an attorney. My attorney told me that Consumer Affairs is usually more than happy to work with a business that is trying to create a system like this to stay within the confines of the law.

Also remember this, there are lawsuits going on now that will help determine if Matrix sites are legal or not. So be mindful of this too. Also if you have any questions for me you may ask me on this forum...I will be around from time to time to answer questions.

And remember this, I have had very little sales, as most matrix owners have, due to advertising strictly in forums (ebay auctions will get cancelled). There really is not very much money to be made in the matrix sites as a owner. So please take my advice, No More Matrix Sites. Also if you think you will be better off as a Matrix Customer, there are still too many matrix sites out there spreading the customers thin. Even now, I won't join a matrix site. The likelihood of cycling is not feesible for me to join. When there are so many sites, and no new customers coming in, it will take a while to cycle....So keep that in mind. In short I wish you all well in your future indeavors, and remember what I have gone thru as a Matrix Owner, it could happen to you. In my area there is a $2500 fine and up to 11 months in jail for operating a site that is a Pyramid Scheme, which according to the lawyers the other day, mine were. So please do not open up any more Matrix sites.....
Some people claim that there's a woman to blame.. but i know, its my own damn fault.

Last edited by DagNasty : 01-04-2005 at 07:01 AM.
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