Posts

Showing posts from February, 2023

When MLM Becomes a Scam: Pyramid Schemes

Image
  Pyramid marketing is a dishonest business model in which the objective is not to sell a product or service but to accumulate profits in a parasitic way. This goal is achieved by recruiting as many people as possible, with the promise of large and quick profits.  This is an unsustainable system, as recruiting other collaborators becomes quickly impossible and those at the bottom of the pyramid have no benefit. This is why this practice is considered formally illegal in many countries of the world. How Does A Pyramid Scheme Work? Pyramid marketing is structured similarly to multilevel marketing, but in this case, the only thing that matters is getting as many people into the business as possible. Through skillful manipulative techniques, newcomers face a high upfront cost in the form of an entry fee or the purchase of product stock. They will need help to recover their initial expenses and try to stay afloat by recruiting staff, but this system will...