Pyramid Schemes

What pyramids schemes are and how to detect them.

a non-sustainable business model promises participants payment or services,

primarily for enrolling other people into the scheme

does not supply any real investment or sale of products or services to the public.

What is a Pyramid Scheme ?

Ask these questions:

1. Is there a product?Pyramid schemes do not have products. A pyramid scheme consists of signing people up under you to create a pyramid like structure. There is no exchange of products or services.

Identifying a pyramid scheme

2. Are participates given to me or do I work for them?

Many pyramid schemes automate sign ups. You virtually do no work. In many instances you are virtually placed under someone who did not personally recruit you.

Identifying a pyramid scheme

The program then promises to give you X amount of participants under you tree. Now, this is not to say all pyramid schemes are like this. Some you do have to do some recruiting to your team.

3. How long has this “business” been around?Most pyramid schemes are short lived. They emerge quickly and leave quickly. Based upon the longevity and how long the program has been around, use your judgment when joining. Do not confuse new emerging Multi-level marketing opportunities as pyramid schemes.

Identifying a pyramid scheme

It is important that you understand what a pyramid scheme is. A pyramid scheme is not any multi-level marketing opportunity. Do Not confuse the two.

Important note