Canadian Diamond Traders Inc.?

[zdrastvootya]

I found this pretty interesting, and wanted to share and get opinions.

These guys have started advertising on Toronto radio (Either 680 News or Jazz FM, can''t remember). The gist of the advertising is that you can save a lot on better quality diamonds than at regular retailers (a concept that Pricescopers may be familiar with).

I went to their website - www.candiamonds.com - . (Same as www.diamondsforever.ca which they say in their radio ad.) Was vaguely disturbed by mention of a multilevel marketing plan. Now I didn''t review in detail, I only know that in my mind, MLM brings up notions of pyramid selling schemes. Not sure this is really the case. Can anyone else have a look or provide opinions?

Z.

 

[JohnQuixote]

Sounds like you have the right of it.

1. Here's the chance all of our PS junkies have been looking for!

2. Whoever gets to a few of our regulars first will easily own the biggest franchise.

Seriously, though...Unike pyramid concepts which build on repeat-buys like household goods or steady contributions like index equity or mutual funds it would seem that a majority of consumers would be "1 and done" in such a model (unless they are basing their success on the American divorce rate across the border). There are select people who can buy an abundance of luxury gems per year, but I imagine most of those people are not looking to start a business.

 

[denverappraiser]

Z,

Very interesting,

The MLM component seems to have nothing to do with diamonds. It’s a little hard to parse the deal as explained on the site but buying diamonds seems to have nothing to do with it, only buying ‘memberships’. If you can’t spare the $500 fee, here’s an alternative that I have personally invested in. I haven't made much money yet but the cost of admission is quite a bit lower.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[Daniela]

Neil,

Love the link! Too funny.

 

[Shawna13]

Okay... that last post made me a little dizzy....