EPISODE 11~ TOP TIP: Pyramid Schemes: Businesses That Are Doomed By Their Own Math

Hi, I’M ELISABETH LEAMY. AND HERE it IS, MY TOP TIP: You know that pyramid schemes are scams where people are paid for recruiting more people, rather than for doing or selling something real. And yet new pyramids pop up every year and fleece people for millions. So here’s an explanation you can share with friends and family that will finally make the con crystal clear: Pyramid-shaped business plans are mathematically doomed to failure. Let’s take a “two by two” scheme in which very rep has to recruit two more reps, who have to recruit two more, and so on. Get this: After just 33 levels of recruitment, they will have used up the entire population of the planet earth! There won’t be anybody left to recruit! Still in doubt? Pyramids are illegal and many multi-level marketing businesses are actually pyramid schemes in disguise. By participating, you could be prosecuted, even though you’re a victim. If you want more information to dissuade someone you know from falling for a multilevel marketing business that is really a pyramid scheme, Pyramid Scheme Alert is thepremier website that explains the scam.

Please follow and like us: