I recently have had several emails and noticed that on the analytics side of this blog that people are searching for information about Fortune Hi-Tech Marketing or FHTM. I have no experience with FHTM nor do I recommend any company at all. I am only doing this to provide a small amount of information. I will not claim this a scam or a sham it is what it is and that is multilevel marketing.
What is multilevel marketing?
The Direct Selling Association defines multilevel marketingas “type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives/distributors based not only on one’s own product sales, but on the product sales of one’s “downline” (the people a representative/distributor has brought into the business, and, in turn, the people they have brought into the business).”
How did FHTM start?
Paul Oberson founded FHTM in 2001 in Lexington Kentucky. Before starting FHTM, Paul was a top recruiter and salesperson for the new bankrupt MLM Excel Telecommunications. He retired from Excel before the bankruptcy filing. (I personally find this interesting does anyone know the timeline?)
What do they sell?
Like most MLM companies they sell whatever they can get hooked up with. FHTM sells products and services as affiliates for other companies which to me marks them down as nothing more than affiliate marketing. The products are legitimate there is no doubt that Dish Network is truly Dish Network however you have to be careful because normally the products and services that MLM companies sell are found cheaper from the real product owner, remember there has to be profit for the intermediary or the affiliate. Paul Oberson also owns the company True Essentials Nutritional Products, Inc which seems to be the backbone of the health products that are marketed by FHTM.
What will it cost me
Here we go it’s time to pay for your job, this is one of the problems I have with all MLM and scams and shams alike they all want you to pay for your job. We talked about that earlier which means that these companies that are asking for your “investment” are in the business of selling the business not the products, and you will have to sell the business as well. The initial fee claims to be $299 and they will want you to pay for the $698 package to be a coach. This is normal for all MLM companies they always offer different levels of investment one thing to be careful is some will not pay you commissions or any earnings if you are in the basic level. They will also charge you for a website and other add-ons. You will also be required to buy 3 of the products or services that are represented. This screams out to me to stay away.
Better Business Bureau
The BBB as of October 2009 holds a B rating because of consumer complaints and it is not a BBB accredited company.
In Closing
 You may have luck in multi-level marketing but the majority of people end up spending more money then they make. This is not an easy job and in my opinion should be stayed away from. I will not call it a scam or a sham but I will give my personal recommendation of be very careful when dealing with any company that requires an investment to get a job.
{ 3 comments… read them below or add one }
Matt:
Interesting article but its slightly outdated. FHTM has an “F” rating with the Kentucky BBB and multiple states have them on their radar.
Check out the recent ABC news investigative reports that aired last week. Maybe your story needs an update. :)
http://www.whas11.com/on-tv/I-Team-Inivestigation-Fortune-Hi-Tech-Marketing-94266814.html
http://www.whas11.com/community/I-Team-Investigation-Fortune-Hi-Tech-Marketing-94273719.html
A class action lawsuit was filed against Fortune Hi-Tech Marketing (FHTM), its officers, directors, Presidential Ambassadors and all National Sales Managers claiming fraud, pyramid scheme and RICO violations in the Eastern District of the Federal Courts on September 2, 2010
Defendants listed in the lawsuit include:
Paul C. Orberson, Jeff Orberson, Thomas A. Mills, David Mills, Billy Stahl, Simon Davies, Ruel Morton, Todd Rowland, Ashley Rowland, Todd & Ashley, Inc., Mike Misenheimer, Steve Jordan, Joel McNinch, Chris Doyle, Ken Brown, Jerry Brown, Bob Decant, Joanne McMahon, Terry Walker, Sandi Walker, Sherri Winter, Trey Knight, Kevin Mullins, Scott Aguilar, Molly Aguilar, Nathan Kirby, Dwayne Brown, Aaron Decker, Susan Frank, Ramiro Armenta, Angelina Armenta, Alexis Adame, Teresa Adame, Darla DiGrandi, Matt Morse, Matt Barrett and Roberto Rivera
This is an action by plaintiffs on behalf of themselves and those similarly situated to recover damages caused by the defendants’ operation of an inherently fraudulent pyramid scheme. The pyramid scheme is fraudulent because it requires the payment by participants of money to defendant Fortune Hi-Tech Marketing, Inc. (“Fortune”), in return for which participants receive (1) the right to sell products and (2) the right to receive in return for recruiting other participants into the program rewards which are unrelated to sale of the product to ultimate users.
This action is brought on behalf of a national class of persons who serve or have served as independent representatives for Fortune, pursuant to the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961-1968 (“RICO”), the Kentucky Consumer Protection Act, KRS Chapter 367, and the laws of Kentucky.
Under the Compensation Plan utilized by Fortune until at least July 1, 2010, IRs are able to earn compensation from two sources: (1) bonuses for recruiting and sponsoring new representatives; and (2) commissions from sales of products and services by themselves and by recruits in their “downline.
Fortune operates as an illegal pyramid scheme because this compensation plan affords IRs the right to receive in return for recruiting other participants into Fortune rewards which are unrelated to the sale of products or services to ultimate users outside of Fortune. Fortune’s compensation plan involves an elaborate set of bonuses which are effectively the only way to earn money in Fortune and which are all tied not to real sales to outside customers, but rather to recruitment of new IRs.
To perpetuate the fraudulent pyramid scheme described above, Fortune claims to have special relationships with or to be a “partner” of several large major national companies whose products and services Fortune offers. These companies include, but are not limited to, AT&T, Verizon Wireless, Sprint, Dish Networks, General Electric Security (“GE Security”), DuPont and Home Depot. Fortune has used the trademarks of these and other companies in marketing materials and business presentations in order to convince prospective customers that Fortune is a legal business. In reality, Fortune does not have any sort of special relationship with these companies. Fortune is not a “partner” with Dish Networks. Rather it is a third-party independent contractor authorized to sell Dish Networks service. There are numerous other such third-party vendors of Dish Network.
All of the defendants in this action collectively form an “enterprise” under RICO, 18 U.S.C. § 1962, in that they are a group of individuals and entities associated in fact, although not a legal entity.
The defendants’ promotion of an illegal pyramid scheme is a per se scheme to defraud under the mail and wire fraud statutes; thus, the defendants have committed racketeering acts by promoting an illegal pyramid scheme by using and causing others to use the mail and by transmitting and causing others to transmit, by means of wire in interstate commerce, writing, signs, signals, pictures and sounds, all in furtherance of and for purposes of executing a scheme or artifice to defraud, namely an illegal pyramid scheme.
It is a cool offer…Just go through this business once and see the benefits you will be getting through this.