Monday, 4 September 2017

Pyramid Schemes

The promise of large returns.

That is what attracts people when they hear others, usually their family members, neighbours, friends or colleagues talking about a pyramid schemes. Of course, it is never called pyramid scheme. It is often disguised as multi-level marketing and it usually promotes goods of questionable quality.
The promoters of pyramid schemes make their money by having others join the scheme. The large membership fees and other payments are the source of income and when the scheme collapses, those who are the bottom or near bottom are the ones that suffer financially as well as a myriad of negative emotion that usually accompanies it.

You should be on alert when;

  • You are offered a chance to join a group that involves large upfront fees and recruiting others.
  • The scheme involves overpriced goods or services with questionable quality
  • The promoter makes claims that it is not a pyramid scheme.
  • The discussion is always about money and very little is mentioned about the product.

Sometimes the people you trust may be promoting these schemes without knowing any better. Do not be pressured to join.

Pyramid schemes are illegal almost anywhere in the world, not only to promote it but to participate in one.

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