Wired News reports on the Matrix Auctions

[MatrixWatch]

Wired News, also affiliated with Wired Magazine (tech), just did a story on the matrix auctions. Those of you who follow the details of this subject would be very interested in some of the information presented here:

http://www.wired.com/news/culture/0%2C1284%2C62226%2C00.html?tw=wn_culthead_4

[MatrixWatch]

I noticed that the Wired News article mentions Goraks.com. These guys had their PayPal account frozen about a month ago, and they are still at it with the scamming. Most of the time, these scam-site owners will not even tell their customers about the frozen account because they want to prevent a "charge-back panic". The fact is that once a matrix site has their customers' fund frozen in an account, it is very difficult to financially recover. Sooner or later, people will be waiting for their gifts long after they cycle. Those disgruntled customers will stop promoting the site, and the whole thing will come crashing down.

Its just one of about 50 ways that these matrix sites end up dying eventually.

Goraks.com even resorts to the classic misdirective "scamonology" when the whole pyramid question is addressed. On their FAQ page they write:


1) Is this a "Pyramid Scheme"? I've heard they're illegal…

Definitely not. In a "pyramid scheme", you make a cash payment only for a chance of being added to the pyramid (which is illegal). Pyramids usually grow downward as well as sideways, and you will move up only by bringing more people into the pyramid yourself. The prize usually is cash, and only few people at the top will actually receive a payout (usually the same "scammers" who started the pyramid in first place).

Our system, however, is a buyer incentive Program (our Promotional Item Lists never grows sideways, only downward, which makes it a lot easier to fill up). You're not paying for a chance of being part of the list, but for a tangible item (like a e-book), which are valuable items with commercial value by themselves (our lists are just a "promotion and marketing method"). Most of our prizes are not cash, but consumer goods. Everybody has the same chance to get their free items, how fast you get them depends solely on how early you signed up in regards to other buyers. Most importantly: you don't have go find people to place under your name, every person who makes a purchase after you for the same item, will be automatically filling up your list (regardless of how they get here, or who brings them).



Complete lie. What this matrix site does not take into account is what most state laws say about "consideration". They can say that the customer was just buying ebooks, but the fact is that people buy into these matrix sites solely for the electronics. Offering "tangible" items for sale does not circumvent laws against pyramid and ponzi scams. In fact, offering a person the opportunity to be on a matrix list in exchange for an ebook purchase is called an illegal lottery, which is just as bad as a pyramid scheme.

Then, this site tells its customers that everyone has the same chance to get a prize, although in the very next sentence they go on to say that the time line depends upon their position on the list. News flash, people don't buy into long lists, and thus the chances that an early-sign-up has for signups under them are dramatically different from the chances of a late-sign-up. In fact, whether or not they cycle depends upon the chances of an unpredicatable amount of people even wanting to sign up. No one can determine the probability of that because there are steep odds involved (ergo the matrix is a game of chance).

Through cunning word games these scam artists will talk themselves around the questions of consumers in the same manner that a snake would slither through a garden. Their tricks stop here.

[concerned]

I went to check out the sites that they mention. This is what www.my3mobile.com had to say.

This is posted on their website.

Announcement!! (Feb 13 2004)
Due to the speculation surrounding My3Mobile being an eBay scam. We are made to revise the way our members promote our products and offers. Before you make a purchase please read our site completely and make sure you fully understand what you are purchasing. Plus we recommend you to read this statement and FAQ. If you still have any questions, please contact us at support@my3mobile.com and we will be happy to assist you.

This is found in their FAQ section, you find this.

Is this MLM or Pyramid Scheme?
Absolutely!


It later says this though, but I still think it is great that they admit that it is a pyramid.

Our PREMIUM FREE GIFT LISTS are by no means MLM or pyramid schemes. They are merely a free gift from us as a promotional tool to aid the sale of our products. You cannot buy directly into the Free Gift List. Once you are in the Free Gift List, you do not need to recruit people to get your free gift.

My3Mobile supplies customers with our Free Gifts as a bonus for purchasings our product. By purchasing our product you will have a choice to receive our INSTANT FREE GIFT or enter one of our PREMIUM FREE GIFT LIST.
Do not make a purchase of our product as an investment.

[ycchen]

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Is this MLM or Pyramid Scheme?
Absolutely!
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This is hilarious! I am speechless....