Yeah, looking back on the time I was recruited into a MLM company called Equinox, I can see what you're talking about. I was 19 years old and very niave about most everything as most 19 year old witnesses are. My girlfriend at the time, another witness, recruited me into the company.
It had all the aspects that you speak of, the recruitment meetings where the Equinox higher ups would say what a life changing opportunity this was and how fast you'd get a return on your investment. The lady that supervised these meetings was supposedly an ex-Fortune 500 company exec that had seen more opportunity in this MLM business and had jumped in and quit her high paying executive job. We would get to see the checks that people were supposedly receiving in amounts of like $25000 per month and such. Someone would get up in front of the crowd and tell how this business had saved his life and his families lives because now he could afford all those things that his family needed.
So, being the nieve young witness that I was, and wanting to be with my girlfriend, I signed up. I took out a $4500 loan from the bank with my car as collateral, bought product to re-sell from the company and became an Equinox associate. I didn't understand what the company was really about. I sold a few things but didn't understand the upsale requirements on the things I was selling so failed to make a profit on most of the things I did sale because they were already too high priced before any additional charges you'd tack on to make a profit. I brought in a few associates myself, but as soon as they realized what it was about, I never heard from them again.
That was my first experience with a get-rich-quick MLM company and at first I really thought all I had to do was sign up and the money would just start flowing in. But the only way that you could have actually made money in that company was if you recruited more people that were willing to take out loans themselves to buy product and then if they would do the same and recruit others, and on down the line. I, just like 99% of the other supposedly happy rich associates could not make any money with this venture to save our lives. We would have to get up in front of the new recruits and lie about how good we were doing and how great of an opportunity this was so that we'd have a chance to make some money off these new recruits through our downlines. It wasn't actually about selling the product at all, it was all about selling a fake company to get new recruits (ala JW's).
Every Monday morning the associates were supposed to come in to have a group speakerphone meeting with the president of the company. He was a jerk. He'd get on the phone and tell everyone how they needed to do better and bring more recruits into the company, how he and his family were going to take a trip to the Swiss Alps the next week to stay at his personal villa and they were going to fly in his own personal jet. And how, if we'd just try harder to recruit then we could have a piece of all his riches too. I remember an instance where I lady in another office, maybe somewhere in Chicago got on phone and everyone could hear her question him and she said she just didn't feel like this was a legitimate business because it seemed the only way to make money was to recruit more people and not sell the product. Mr. President guy flew off the hook and called her a bitch and told her to get the f**k out and that she was no part of his business anymore. Then he said, "that's how you all can handle a whiney bitch." Everyone laughed and clapped and agreed. I felt really bad about the whole situation, but I laughed as well.
After we got out of that particular meeting, I guess I was in need of a talking to because I wasn't bringing in enough recruits. So I was told to sit down in a chair in the middle of the office where everyone could see. Then the supervisor (Fortune 500 lady) nodded and gave the go-ahead to the girl that had been my girlfriend and she yelled and berrated me in front of everyone and told me that I wasn't a worthwhile enough associate for her to waste her time on and that I either needed to shape up and work harder to bring in more recruits or I needed to get the hell out. So I got up and got the hell out, never to return.
It was basically a $4500 lesson for a 19 year old on why I should never get involved in something like that again, although at that particular time I couldn't see the similarities to the JW's. A couple years after that there was a 20/20 episode on Equinox and a bunch of previous associates were on there talking about how they were going to bring a class action lawsuit against Equinox for being a pyramid scheme. The business filed bankruptsy shorty afterwards.