I have some bad news today… Fortune High-Tech Marketing has been shut down by the Federal Trade Commission and 3 State Attorney Generals. Why? Because apparently nearly all of the commissions that could be made came from sponsoring more reps rather than selling services. That, as you probably know, is a recipe for a “pyramid scheme.” Here are the status according to USA Today:
- 85% of the money made by reps came from other reps
- Around 90% of all of the distributors in FHTM made less than $15 per year
- 30% of representatives actually made $0… zip, zilch, nada
- Just over 50% of the people who actually made money only made $93 bucks a month
- And of the people actually making enough for it be worth it, 99% of them were making about $31k (which apparently wasn’t exactly what was communicated in income claims)
The FTC has set up a phone line for distributors to call to get the low down on the company and what’s going on with Fortune High-Tech Marketing. The # is 202-326-2643.
The message says that the company was given a restraining order which temporarily shut them down, and it informs callers that they can file a complaint if they would like at 1-877-382-4357.
Could the company bounce back and fight off all of this legal trouble? It’s possible, but I doubt it. Companies get shut down sometimes like Zeek Rewards did last year. Not all networking companies are created equal. It’s not fair, but sometimes others make poor choices that affect us. We can’t change what they did, but we can choose how we will react to it.
If you were in FHTM, I wish you the best of luck in finding another company. The waters are already swarming with networkers from other companies trying to sign you up in theirs! When you decide to join another network marketing company, make sure you choose one that has a strong focus on selling customers products rather than making its cash from signing people up. Also make sure you join up with a team that gives a rip about you as an individual rather than just their bottom line.
If your upline cares about you and you trust him or her you should consider staying with your team and moving with them to the next company that they move to. The relationships in this business are what’s important. There are tons of companies out there that are great and nowhere near being shut down.
If you never had a true team environment in your experience with FHTM, let me apologize on behalf of your leader and team. Not everyone gets to have a fantastic team or upline, and I’m sorry that chance was denied to you. I truly hope you find not only the company that won’t close their doors on you, but an upline and a team that cares about you too.
Keep your head up, and I’ll see you on the beaches of the world,
– Matt Hall