A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service. They are illegal. The only people that are able to make money on a pyramid scheme are the people at the top of the pyramid.
Pyramid schemes promise very high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors.
Difference between Pyramid and Multi-Level
One difference is that members at any level of a multi-level marketing model can make income through the company’s products and/or services without signing up any new members. The second difference is that multi-level marketing companies are LEGAL!
Examples of Multi-Level Marketing Companies
* Avon Products;
* Tupperware;
* Herbalife;
* World Financial Group;
* Nu Skin/Pharmanex/Big Planet;
* Xango
Pyramid schemes promise very high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors.
Difference between Pyramid and Multi-Level
One difference is that members at any level of a multi-level marketing model can make income through the company’s products and/or services without signing up any new members. The second difference is that multi-level marketing companies are LEGAL!
Examples of Multi-Level Marketing Companies
* Avon Products;
* Tupperware;
* Herbalife;
* World Financial Group;
* Nu Skin/Pharmanex/Big Planet;
* Xango
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