Thursday, April 22, 2010

Dedication to Shayne Edson -

This video is dedicated to Shayne Edson, He got lucky and got Nasty™ (Me!) to join in. (But honestly; I haven't been THAT active on YourNight, because I have my hands full of other stuffs that I am doing.) But it is a fun site, or will be, as soon as they gt control of the issues that they are having. It's good that you can manage several networks insode of YourNight at the same time through Widgets...

What more can be said about YourNight? This information I found in a forum:

"The site does need some work. It's still a beta version. As for the cool kids, they are protecting peoples referrals by making the site accessable by invite only. After you sign up for free, you will have access to all the free features. And they have a feedback link to help them with ideas that will make the site better. If you want the other features you will need to upgrade to gold member.

Really... That's what you got. You think it's a scam, because you don't like the guy. Haha, I saw the techcrunch. That last comment sure shut all of you up. Funny stuff. Honestly you sound like you may know the founder personally, and your running a smear campaign. Remember all press is good press. Keep it up.
Maybe you can talk about insurance brokers and salesmen next. How it's just immoral for them to make money off referrals aslo. Haha
or how about every other network marketing company on the planet

Hopeful_Cynic joins in to discussion:

 Howdy Glenn, perhaps you could answer a few questions about yournight. I can't seem to find a copy of their compensation plan without joining up, could you post it for us? I have to say some of the things you say on your blog are a bit unsettling and make me wonder if you've ever heard of a "pyramid scheme" before.

Again, I don't have access to the yournight site but from the link off your blog we can find this:

If you still believe is a scam, then your gonna miss out on an opportunity of a lifetime! is a Social Networking site that pays RESIDUAL commissions to it's Gold Members for Personal Referrals, as well as Team Referrals down 7 Levels.

Gold Members Receive:

$2.00 monthly from every paid member you personally refer
$.50 monthly from every paid member in your downline down 6 levels
$1.00 monthly from every paid member on your 7th level!
If you think this sounds like "Chump Change" then check out these numbers!
This is what commissions look like when everyone in your downline invites only 5 Gold Members.

Level 1. $2.00 x 5 Gold Members = $10.00 every month

Level 2. $0.50 x 25 Gold Members = $12.50 every month
Level 3. $0.50 x 125 Gold Members = $62.50 every month
Level 4. $0.50 x 625 Gold Members = $312.50 every month!
Level 5. $0.50 x 3,125 Gold Members = $1,562.50 every month!
Level 6. $0.50 x 15,625 Gold Members = $7,812.50 every month!
Level 7. $1.00 x 78,125 Gold Members = $78,125.50 every month!

Total Residual Income Per month = $87,897.50 with Only a $10.00 per month investment!!

If the above is the Yournight pay plan then I'm afraid I'll have to tell you that it's not operating a legal buisness. You can not pay people just to recruit more people, the FTC is very clear on that point. An excerpt from one of their statements on the issue explaining why:

How Pyramid Schemes Operate

Let's look at how a pyramid scheme operates from three points of view: the potential investor, the promoter or con artist, and the victim. Many pyramid schemes will present a payout formula or matrix much like this one:

# Payment of $500
Level 1 $150 x 3 = $450
# # #
Level 2 $30 x 9 = $270
# # # # # # # # #
Level 3 $30 x 27 = $810
# # # # # # # # # # # # # # # # # # # # # # # # # # #
Level 4 $30 x 81 = $2430
etc. # # # # # # # # # # # # # # # # # # # # # # # # # # #etc.

This example illustrates what is known as a three by four matrix. Each investor pays $500 to the promoter and is told to build a "downline" by recruiting three new members, who then each should recruit three more members. The investor is told that he will be paid $150 for each of the three members whom he enlists at the first level. The investor is also promised a $30 commission for each recruit at the next three levels. Thus, the investor should receive commissions for four levels of recruits below him, each of whom must recruit three more members, hence the name -- a three by four matrix.

To the potential investor/recruit this may look like a very appealing opportunity. The pyramid promoter is likely to persuade the investor that he is "getting in early" and that he should consider himself at the top of the matrix. From this perspective, it appears that he can earn $3,960 on an investment of $500, a whopping 792 percent return. You can do the math easily: $150 from the first level of 3 recruits is $450; $30 from the next 3 levels of recruits is $270 ($30 x 9), plus $810 ($30 x 27), plus $2,430 ($30 x 81). Not a bad deal.

Yet, consider the matrix from the promoter/con artist's point of view. He is the person at the top of the pyramid but in fact looks at the scheme from the bottom. He views each new investor as a predicable set of revenues and expenses, with the revenues flowing down to him. The con artist receives $500 for each new member, and at most he will have to pay $240 in commissions to earlier investors in the new recruit's "upline," i.e. those people responsible for bringing him into the system. So when an investor joins the system in the last level, the promoter will receive $500, but he will pay only $150 to the person who recruited the new investor, and $30 each to three longer-standing members in the new investor's "upline," for a total of $240. Thus, the con artist will keep over half of every $500 membership fee paid.

Let's assume that this scheme collapses after the fourth level of recruits is filled. The con artist will have made $500 from the first investor in the pyramid ($500 with no commissions paid out), $350 from the 3 at the next level ($500 minus commission of $150), $320 from the 9 at the next level ($500 minus commissions of $150 + $30), $290 from the 27 at the next level ($500 minus $150 + $30 + $30), and $260 from the 81 newest investors ($500 minus commissions of $150 + $30 + $30 + $30). The simple math -- $33,320 flowed down to the con artist -- and all he did was attract one investor!

Now consider the pyramid from the investor/victim's perspective -- after the entire scheme has collapsed around him. The victim, like the first investor, thought of himself at the top of the pyramid but suddenly realizes that he is actually at the bottom, unable to find people interested in the program to build out his downline. He is not alone because mathematics shows that MOST investors will find themselves at the bottom of the pyramid when it collapses. The very structure of this matrix dictates that whenever the collapse occurs, at least 70 percent will be in the bottom level with no means to make a profit. They all will be out $500. In our example, even those people one level above the bottom will not have recouped their investment. They each will have paid a membership fee of $500 and collected commissions of $150 for each of three recruits, leaving each investor in the second-from-the-bottom tier at least $50 shy of his break-even point. In short, when the pyramid collapses all the investors in the bottom two levels will be losers. Adding together the number of victims from these bottom two levels shows that 89 percent of all the pyramid's participants (108 of 121 investors) are doomed to lose money.

Mumbles joins in to discussion:

Registered through:, Inc. (


Created on: 05-Feb-10

Expires on: 05-Feb-11

Last Updated on: 05-Feb-10


EEI is a "PRE-REVENUE" Delaware Corporation formed in 2007. EEI was established after, Inc., formed in 2005, decided to expand its concept to a global market creating Extreme Enterprises as its parent company., Inc. has since been dissolved and, LLC. has been formed as the primary subsidiary.

EEI's first product,, will be competing in the multi-trillion dollar internet commerce industry and the multi-billion dollar internet media industry. If YourNight gains even a 5% market share in either of these industries, the return on investment potential is extremely high. However, since EEI is still a pre-venue corporation, the risks of investment are considered much higher than most traditional investments. Invest at your own risk and please contact an investment professional for additional information regarding the pros and cons of investing in pre-revenue startup companies.

A couple of familiar names pop up in the story as well: one of the investors is Mike Alstott, the recently retired Tampa Bay Buccaneers Super Bowl champion and six-time Pro Bowl star. George Wendt, that would be the actor who portrayed Norm in the sitcom “Cheers”, is a family member to the founder of EEI and is expected to be endorsing the company, with the terms still in negotiation. Then there’s attorney Ken Keefe, a former U.S. Diplomat and ex-President of Eupen Cable USA who will be assuming the role of President / CLO for the company.
 GlannThomas43 replies:

A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, *without any product or service being delivered. Pyramid schemes are a form of fraud. is a social media service. Just like or any other sight you must pay for.

There are not cash transactions. All money transactions are well documented. And before you can recieve compensation. You must fill out a 1099 for tax purposes.*
Mumbles replies:
 you are not being paid to provide a service, you are being paid to recruit others into the pyramid.

when the owners see how its going, they will probably cancel your account, meaning all your work is for nothing. no lifetime residuals, $nothing.

Well.... I honestly don't know what to think about this. But I'll admit; it was interesting though. If you want to read the continueing part, folow the link to this forum, where I stumbled upon this discussion from the first part.

Thank you for reading this blogpost.
I'm sorry I couldn't make it any more interesting than this today.

Mia Hienovirta
PrylensWeb International

1 comment:

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.


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