Whenever I see hype, it raises a huge red flag for me. It’s a sign of something that is driven by recruitment, and does not have a long term future. In the case of efusjon there was bucket loads of it.
The company began in 2008 and was formerly launched in January 2009. It experienced rapid growth until their Facebook Application Launch failed miserably and a lawsuit was filed against it by MLM attorney Kevin Thomson in late 2009.
The lawsuit was filed in an effort to get the company to change its business model to protect its distributors from promoting an illegal pyramid scheme.
Since then it has been on a gradual decline. In late August 2010, it sent this letter to its distributors… [click to continue…]
Efusjon, often spelt with a lower case ‘e’, launched in early 2009 with great hype and fanfare. The opportunity to make enormous amounts of money with efusjon was forcefully marketed on the social network, Facebook. Indeed, some members who used Facebook literally became efusjon extremists.
Well right now, efusjon is being sued in California for operating as an illegal pyramid scheme. The reason for that is the only way for distributors to make money in efusjon is to recruit people into the network.
See, a network marketing business model is sustainable because there is the constant movement of a quality product to the end consumer who’s happy to pay for it. A pyramid scheme is a non-sustainable business model that impoverishes 9 people for every 1 that gets rich.
This case demonstrates that just because a company has a tangible product and is using a multi-level marketing distribution channel to get it into the hands of consumers, it does NOT mean that the company is not running an illegal pyramid scheme. [click to continue…]
