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What is a Pyramid Scheme?

By: Brad Schneider  

What is a Pyramid Scheme?



By Brad Schneider

http://www.bradsblog.net


Most people these days have heard of the term “Pyramid Scheme”, but not everyone knows quite what the term refers to. Pyramids are businesses that involve earning money from those who are beneath you in the pyramid. Many of these businesses are perfectly legitimate, and one can be quite successful without recruiting anyone else.


There are many businesses that you might be familiar with that are pyramids, including:

Tupperware

Mary Kay

Amway

Quickstar

Creative Memories

Stampin’ Up!


The “Bad” ones are those that will not make you money unless you recruit more and more people. These are the schemes that bring the bad name to the business, and are otherwise referred to as “Pyramid Scams”. If and when you are approached to be recruited, you should ask the hard questions. Be sure to ask how much money you make without any recruits. Also find out how long they have been affiliated with the program, and how many recruits they have underneath them.


The only time I would recommend getting involved with one of these pyramid type businesses is where you make regular purchases and you enjoy dealing with a certain product (Such as Mary Kay, Stampin’ Up!, etc.)



Brad Schneider writes financial and blog related articles for his blog as well as www.blog-hints.com and www.investingpub.com


This article is copyright © 2005 www.bradsblog.net and is free to distribute as long as this copyright statement and all links and text are included.



This article is free for republishing

Brad Schneider is the owner of www.blog-hints.com and maintains his own blog at www.bradsblog.net. Feel free to distribute this article as long as this box is included.  


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... Exchange Commission investigated PAS and didn't like what it found. "PAS is nothing more than a fraudulent pyramid scheme that is destined to collapse and leave the vast majority of investors w...
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Your location Home Fraud Fraud Against the Individual Gifting Schemes Gifting schemes or pyramid schemes A gifting scheme was started on the Isle of Wight called "women empowering women". This was ...
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... attainments by the time you joined it early in 2006? A successful model; excellent people leading Pyramid Schemes, and, of course, Pyramid's staff members, whose enthusiasm drives all its devel...
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