02 June 2008

Shonky Operator

Beware of Roger Hamilton and XL Results Foundation

I recently received an invitation to a presentation in Wellington by Roger Hamilton from XL Results Foundation.

The topics of the meeting included personal profiling, wealth creation, and business success.  I figure I always have something to learn.

He does this all around the world.

I attended the evening event, and also the follow-up breakfast meeting the following morning.  What I witnessed was quite disturbing - to the extent that I am moved to comment on it, as well as to alert the organisation that promoted it to me.

Roger Hamilton is an interesting and entertaining presenter.  Give credit where credit is due.  He is a clever guy, he shared some good ideas, and I learnt something for sure.

However, his core purpose is not to inform.  The whole thing is a sales process.

Well, in business there's sales and there's sales.  I am not qualified to comment on legalities, but I am surprised that what he is doing does not cross over the boundary into being classified in New Zealand as an illegal pyramid scheme.

Either way, he certainly crosses the boundary of ethics and honesty, very skillfully using psychological techniques to deceive and manipulate.

As a result, I saw a large number of people part with a large amount of money, for a product which is not worth a small fraction of what they paid, in response to vague and misleading information and straight out lies.

Sure, they signed their names voluntarily, and people have a right to make their own impulsive decisions, and to pay money without doing due diligence if they so choose.  So that's all accepted.

But it's still a nasty scam.

In researching about it afterwards, I found a number of web sites and blogs where others have similar concerns.  On one of those, the author asks "How you feel when you hear about people being swindled in the same way - do you let it happen, ignore or speak out?"  I think I will speak out at any opportunity.

Having said that, I need to try and be succinct.  So, what was for sale? Life Membership of Mr Hamilton's little club.  What is the price? $NZ14,500 per person if paid on the spot, or $NZ17,500 if paid in instalments over 12 months.  Is there an opportunity to review any hard information before making a commitment?  No.

Here's a brief overview of the sales process:

  • The man with the gift of the gab gets everyone real hyped up.
  • Those who "resonate" with the hype have to fill in the application form.
  • After that you get told the price.
  • After that, you compete to be one of the 5 who will be accepted (except that after the first 5, they keep accepting people anyway - there were 10 who took the plunge when I was there).
  • After that, you have to give your credit card details, and sign the form which states no refunds.
  • After that, you get some specific details about what you get for the money.

Well, that last point is a tad unfair, I admit.  During the course of the talk, you do get some snippets of information, in very emotive and general terms, about Life Membership.  But certainly not enough to base a rational decision on.

Pretty much what it comes down to is:

  • Subscription to a monthly magazine - lots of advertising and the occasional interesting article.
  • Potential benefits of social networking with other members. Sort of like a private LinkedIn.
  • The opportunity to contribute to charities, in some undefined way.
  • An income opportunity by getting a percentage cut of the membership fee of people you refer (this was not mentioned at the meeting, I found out about it later).
  • Attendance at a whiz-bang function.
  • Access to life/business coaching.

$14,500??  C'mon!

On the face of it, the coaching aspect sounds like the most meaty of the offerings.  But then, if I'm going to get coaching, I need to find a coach I can "click" with.

I have no idea, of course, about any of the coaches within that organisation.  There was one of them at the meeting I attended, and I sure wouldn't have "clicked" with him.

But you would have to assume that the coaches are all people who at some stage have been through the same process I observed.  That means they are not representative.  It means they are people who are able to be swayed by excitement.  It means they are people who have demonstrated their willingness to invest large amounts of cash without proper consideration.  It means they do not have a well-developed ability to detect unethical behaviour.  It means they are not for me.

So that's the value for money aspect.  But in the end, it is primarily the snake-oil tactics that I am upset about.

Something just really got to me about this.  Because I saw it first-hand, I suppose.  It was certainly amazing to see the vulnerability of some folks, and to reinforce my belief in the concept of consumer protection.

Which is simply my point... Watch out!

13 Comments:

At 6 June 2008 at 6:01 pm, Anonymous Anonymous said...

http://perth.norg.com.au/2007/10/23/suspect-business-network-back-in-perth/

There is no doubt that the whole organisation lacks credibility!

 
At 6 June 2008 at 10:46 pm, Anonymous Anonymous said...

That is a succinct account of what I saw. I am embarrassed to say that i was on the point of signing up as I confessed in my XL Results Foundation Update. When you consider the offer in the cold light of day, it is a joke to charge anywhere near that fee for this 'Life Membership'

Flora

 
At 6 June 2008 at 11:12 pm, Blogger Steve said...

A reader, whose full comments I am unable to publish, has supplied the following references:
http://www.stuff.co.nz/4287069a6442.html
http://www.brisbanetimes.com.au/articles/2007/05/30/11802053...
http://rogerhamilton-consumerwatch.blogspot.com/
http://rogerhamilton-xl.blogspot.com/
http://www.pyramidschemealert.org/
http://xlresultsfoundationscam.blogspot.com/
http://rogerhamiltonexposed.wordpress.com
http://www.businessesfromhell.com/topic.asp?TOPIC_ID=401

 
At 7 June 2008 at 12:56 am, Anonymous Anonymous said...

Business Networking Scam hits Shanghai

May 20, 2008 – 7:52 pm

http://mingtiandi.com/?p=58

This strays a bit from our usual Mingtiandi vein, but I just received a scam appeal to entrepreneurs that I thought might be worth warning folks about. I received two emails inviting me to an “Exclusive business breakfast meeting by invitation only!” from something cheesily called the “XL Results Foundation.”

It seems this foundation is a bogus business networking scheme that bilks would-be entrepreneurs for membership money while providing them with non-existent training and networking opportunities. And I thought those dodgy financial consultants were bad! You can find out how the scam works from this posting on ripoffreport.com and this Australian report from Perth.

In the mail, the XL Foundation describes itself as, “the world’s leading entrepreneur and social enterprise network.” But offers no grounds for this assertion. These tricksters from Singapore further assert that their ringleader will, “explain how Businessmen and Entrepreneurs can take advantage of emerging Business Opportunities in Asia-Pacific Region.” Evidently the secret to taking advantage of opportunities is tO cOmpletely Ignore all standards reGarding Capitalisation. and the grammar.

It seems this pyramid scam has already made the rounds in Singapore, Indonesia and Australia and is now hoping to take advantage of the overly optimistic crowding the streets of Shanghai.

If you get this same email as I did, just toss it in the bin and save your business cards for the next Chamber of Commerce meeting.

 
At 16 June 2008 at 5:15 pm, Anonymous Anonymous said...

The Federal Trade Commission warns that the practice of getting commissions from recruiting new members is outlawed s "pyramiding."[9].

www.ftc.gov

 
At 17 June 2008 at 1:01 am, Anonymous Anonymous said...

Roger Hamilton and XL Results Foundation - Shonky Partner, Daniel Priestley of Triumphant Events

http://www.triumphantevents.com.au/images/annexure-a-document.pdf?PHPSESSID=c3bcdd5455dc3b2148b047b8fa22a502

Excerpt from the document

In June 2007 the Australian Competition and Consumer Commission (ACCC) commenced legal action against The Triumphant Group Pty Ltd (trading as Triumphant Events) for alleged contraventions of the Trade Practices Act 1974.

The Federal Court of Australia has declared by consent that Triumphant, by engaging in the above conduct, contravened the Act. The Court also made orders by consent restraining Triumphant from engaging in the offending conduct in the future.

 
At 22 June 2008 at 8:39 pm, Blogger Steve said...

Further discussion at http://www.bizop.ca/blog2/pyramid-schemes/wealth-guru-hits-nz---sunday-s.html#comment-228120

 
At 11 October 2008 at 9:34 pm, Blogger Unknown said...

Ponzi scheme hits New Zealand

This pyramid scam has already made the rounds in Singapore, Indonesia and Australia and is now hoping to take advantage of the overly optimistic crowding the streets of Auckland, Christchurch & Wellington.

Roger Hamilton and the XL Results Foundation XL life membership recruitment drives:

Tuesday 14th October, The Langham Hotel, 83 Symonds Street. Auckland, 7.30am to 9.30am

Wednesday 15th October at Rydges Christchurch, Corner Worcester St and Oxford Terrace, 7.30am to 9.30am.

Thursday 16th October at Mercure Hotel Willis St, Wellington 7.30am to 9.30am.

 
At 16 December 2008 at 9:52 pm, Anonymous Anonymous said...

Consumer Update - XL Results Foundation collapse

The XL Results Foundation Head Office in Singapore has closed down.
Address: 30 Robinson Road, #02-01, Robinson Towers, SINGAPORE 048546.

Victims of Ponzi Scheme operator Roger Hamilton and the XL Results Foundation scam are advised to contact the Consumer Affairs Department and/or Department of Fair Trade in their respective country.

XL Results Foundation Pte Ltd is owned by a holding company incorporated to a PO Box address in the Republic of Seychelles.

 
At 5 January 2009 at 9:34 pm, Blogger kiwi_paul said...

Have any of you actually spoken to any current and satisfied members of XL?

It is always easy to try and cut down the tall poppy......I am an XL member and am very happy with the networking, education and social opportunities available to members.

Whether you like the sales process or not is a personal choice but is it not really grounds for commenting publicly on an organisation you have very little knowledge of.

 
At 6 January 2009 at 2:32 am, Blogger Steve said...

Paul,

I am of course aware that there are people like you who feel positivley about their membership. This is self-evident, and applies to many despicable organisations and groups. This is not related to my point.

Yes, whether I "like the sales process" is a personal choice. But if I simply didn't "like" it, I would not have written about it. You know, the sales process stinks. It's abhorrent. It offends against the core of my ethics. Others have seen it too. That's why I spoke.

 
At 30 January 2009 at 10:52 am, Anonymous Anonymous said...

I am an XL Cirle Member for the sake of connecting globally to entrpreneurs. I found the sales process disgusting in regards to Life Membership when considering the lack of transparency of the benefits. After enrolling I was immediately solicited into blatant a blatant ponzi scheme called Dubli.

 
At 15 February 2009 at 9:36 pm, Blogger Steve said...

A correspondent has pointed out this site to me.

 

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