- Report: #415863
Report - Rebuttal - Arbitrate
Complaint Review: Global Leadership Alliance, Inc. - Tim Herr
Global Leadership Alliance, Inc. - Tim Herr600 Anton Blvd. 11th Floor Costa Mesa, California U.S.A.
Global Leadership Alliance, Inc. WATCH OUT!!! A blatant and illegal pyramid scheme. Tim Herr's new alkaline scam. Costa Mesa California
*General Comment: Ripoff, Really?
*Consumer Comment: Tim Herr and Richard Cho ripped me off and my friends too while he was working at ACN
*UPDATE EX-employee responds: The Truth about GLA and Tim Herr
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Would you really want to go out and rip off your friends and family by selling them these bottles knowing that they could save $200-$250? ...especially in these economic times where these products are far from necessary? Well guess what? You're not required to go out and sell any products at all. That's right... this company is based primarily on recruitment and excessive inventory loading, which is one of the main defining characteristics of a pyramid scam. Here's why:
Your position and income is based on bonus points (BPs). The more BPs you have, the higher position you can achieve with more income. The comapny's model is based on a binary system which means distributors only have 2 direct downline(2 "legs"), however the 2-get-2 expansion downwards is endless and infinite (endless chain of recruiting).
The ranks and requirements are:
Master Trainer: Requires at least 400 BPs in each leg
Area Team Leader: Requires at least 2,000 BPs in each leg
Regional Team Leader: Requires at least 5,000 BPs in each leg
Area Director: Requires at least 15,000 BPs in each leg
Regional Director: Requires at least 25,000 BPs in each leg
Senior Vice President: Requires at least 150,000 BPs in each leg
Global Vice President: Requires at least 750,000 BPs in each leg
Here's the buy-in options for new recruits:
Bronze Package: Costs $299 / Generates 160 BPs anywhere in your network.
Silver Package: Costs $599 / Generates 400 BPs anywhere in your network.
Gold Package: Costs $1,099 / Generates 800 BPs anywhere in your network.
The more expensive packages simply stocks more inventory of product to the new recruit initially. In turn, it generates more bonus points. What's really disturbing is that these positions can be achieved without a single product being sold to outside customers, and can be achieved solely by recruitment and inventory loading. There is NO REQUIREMENT to sell products AT ALL. Let's do an example to see why:
Let's say a distributor wanted to achieve Regional Director. He/She needs 25,000 BPs in each leg. This can be achieved simply by:
-Recruiting 32 people in each leg on the gold package (25,000 / 800)
-Recruiting 63 people in each leg on the silver package (25,000 / 400)
-Recruiting 157 people in each leg on the bronze package (25,000 / 160)
That wasn't counting the bonus points generated by what the company calls "autoship" (inventory loading). In order to qualify for ANYTHING... to receive ANY income or get promoted to ANY position in this company, the distributor HAS to always be on a monthly autoship program which costs an additional $100 a month. This "autoship" is a stock of products shipped to the distributor every month. For every distributor who's on autoship, it generates 80 BPs in the network, and since autoship is REQUIRED to qualify for anything, every distributor is going to be on it.
So say for example you got 200 recruits in each of your 2 downline legs. It doesn't matter which package they get... That would generate 16,000 BPs (200 x 80) per month for each leg. The BPs also never ever reset, so it just keeps adding and stacking up. So that would mean in 12 months, your 200 recruits would generate 192,000 BPs on top of the BPs received from their initial sign-up.
192,000 BPs per year... with only the distributors receiving products. You can clearly see why no product needs to be sold to non-distributor customers and that it is in fact a pyramid scheme. Often, when I confront them about it, their argument is that product IS being sold because the distributors are on autoship which means "product is being sold". The reality is that the autoship is simply part of the opportunity investment and is still considered "pay to play" in the scheme.
Actual selling to outside customers CAN be done, however, the BPs generated by doing so are miniscule compared to the BPs generated by recruiting.
GLA without a doubt, violates most, if not all Federal Trade Commission guidelines for recognizing illegal pyramid recruiting schemes.
http://www.ftc.gov/speeches/other/dvimf16.shtm - Under "Looking Ahead"
Also take a good read through (((link redacted)))
I was unfortunately sucked into this for a few months and here's what I can tell you:
GLA is taking advantage of uneducated and naive investors through deception based on loose claims and promises. Most of the people that are invited down to the meetings and sign up are young students studying in college. They are preying heavily on the universities here in Hawai'i, brainwashing people to the point where everyone now thinks that any and every job where you have to "work for someone" or be an "employee" will result in a life of financial hell and poverty and that the only way to prosper is by "owning their own business in GLA".
They will tell you to do "warm recruiting" which means soliciting friends and family to join the business. Using these mutual bonds of family and friendship as mere stepping stones for building a business will only result in strained relationships and alienation of family. GLA will force you to have a "non-negotiable & non-debatable" attitude to squeeze out the last remaining hopes of your friend's or family's' potential of signing up into the scheme... annoying them to the point where they won't ever want to talk to you anymore. Schemes like these can be even more damaging to your relationships with friends and family than it can to your bank account.
This whole scheme is based on greed for money and materialism. It makes me sick to my stomach to see many people now dropping out of college and throwing their careers away as a direct result of this company. More notably, one of my best friends who was a bright student studying engineering at UH Manoa, sporting 4.0's across the board and was on his way to a good solid career until he got recruited by GLA. Now he's not studying at all, and is now only promoting a scam. I also recently learned that he's now $50,000 in debt owed to the banks from loans. He's basing this all on the idea that he can achieve that "30 to 50 grand a month life-long success" etched into his mind by the scheme.
Don't let this money/greed cult mess with your mind. You will only be trained to deceive your close friends and family for personal gain. They will spit out what ever deceiving rhetoric they can to make you sign up if you are even the least bit skeptical. You are a slave for recruiting once they have your money. Keep your money safe. Don't ever give out your personal information to GLA recruiters. Run away if you have to.
CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
This report was posted on Ripoff Report on 01/24/2009 10:13 PM and is a permanent record located here: http://www.ripoffreport.com/r/Global-Leadership-Alliance-Inc-Tim-Herr/Costa-Mesa-California-92626/Global-Leadership-Alliance-Inc-WATCH-OUT-A-blatant-and-illegal-pyramid-scheme-Tim-He-415863. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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