Why do Pyramid schemes have such a bad name !!

savysaverbrett

Pyramid schemes always seem to have a bad name, does anyone actually know why you should steer clear of them ??

I don't know anything about the pyramids schemes of yester year(yet), but I've been doing some research on some of the 'get rich quick' schemes plastered all over the internet and I suspect although they are based on the pyramid model, that they are a lot different to the scams run (if they were scams - i suspect thats why they have a bad name) before the .com boom.

My research is specifically for my disertation for my degree, so completly unrelated, but I'm starting to feel tempted to take part, though, please don't take that as a recomendation to others to do so, as I would like this post to remain purely to instigate a debate....

My argument at present FOR pyramids schemes is as follows:

1. There are big organisations out there, the internet is huge. Judging by what I have learnt so far, they are organisations that are willing to pay commisions for you to recruit further people to their organisation, so in essence you become the owner of your own marketing/recruitment business. There are small costs associated with running it ~ $10 per month (what ever that is in english money now-a-days). But if you were starting a business of any type that would always be the case and it is likely to be a lot more. Also in the particular example my research has focused on this charge is just for a domain name.

I don't know about anyone else, but I've certainly wasted money of domain names before with my useless very unsuccessful business enterprices ...lol.

This particular example follows the pyramid model, people further up then have recruited you and it is in their interest for you to recruit others, so there is indeed, as you would expect a lot of help and support when starting out.

I believe it to be a perfectly sound business model with a small start up cost. Also, if it didn't really work, why would sooooo many people by boasting over the internet about how to get rich quick.......

Currently I don't have any arguments against, but if I decide to start on one and it doesn't work out then I'll soon let everyone know what they are :-)

Has anyone tried a scheme similar to that mentioned above which they could talk about to continue with this thread.

Good experiences ?
Bad experinces ?

One last thing, if anyone has details of the pyramid schemes of yester year, that would be great for my research also.

Thanks

Brett

MrsTinks

Pyramid scheme - definition: non-sustainable business model.

Scroll down THIS page for recent cases

Unfortunately your only arguments FOR pyramid schemes are that SOMEONE makes a lot of money - and a lot more people LOOSE a lot of money... Not sure why you'd think that makes a "sound business model"...

maninthestreet

Is this a wind-up???

MrsTinks

maninthestreet wrote: »

Is this a wind-up???

Dunno... but I am tempted to offer the OP this fab bargain I've had sat round for a while... it's a bit rusty but it would be a super tourist attraction and I bought it cheap of a guy in Paris and it's definitely the real deal... I have the certificates and everything to prove it's mine too so it's all legit:



Money needed as new baby on the way so genuine reason for sale - would be looking for about £10k if it goes to an equally loving home.

elona

The OP doesn't want the Eiffel Tower - he wants something useful- I know of a nice bridge - going cheap.;)

MrsTinks

Hey don't dis my tower it's VERY useful! it... it.... uhmm.... it looks pretty! About as useful as a pyramid scheme infact

jackomdj

OK I hope to give some useful advice....

Some pyramid schemes work & some don't.

I do something where my main focus is selling product to customers (they can only come to recognised people to get it) as a side if I recruit someone I get a % of their purchases as does the lady that introduced me, but it goes no higher than that. If I recruit too many people & too close to me I lose sales (as there are a finite number of people requiring my product). This works as the pyramid commission is an aside to my main role.

If however the main focus is getting people below you in the pyramid & paying to do so then it will soon fall down as you only know a limited number who are interested to pay for something where they may not get a return. If you are having to promote it via expensive advertising again you most probably would not get a decent return on it.

HTH
Nicky

competitionscafe

Some reading for you:

http://www.mlm-thetruth.com/Top10thingsIlearned.htm

http://www.mlm-thetruth.com/Top10thingsIlearned.htm#summary

competitionscafe

savysaverbrett wrote: »

I believe it to be a perfectly sound business model with a small start up cost. Also, if it didn't really work, why would sooooo many people by boasting over the internet about how to get rich quick.......

Have you ever considered the possibility that "people boasting over the internet about how to get rich quick" might be lying scammers?

mrsJeckyl

The main thing which gives pyramid schemes a bad name is they are ILLEGAL.

What is completely legal and one of the biggest growing businesses at the moment is multi level marketing otherwise known as network marketing. These are very much legal and with a bit of hard work, I believe anyone can make money with them. You may guess I am in one. They are similar to franchises in which you pay initial start up costs (which your sponser does NOT get any). It is only when YOU make money do people above you make money.

trina2010

yes it really all does boil down to the fact that its illegal, not just in the uk

Quoted from a helpful website
Pyramid schemes are illegal in many countries, including the United States[1], the United Kingdom, France, Germany, Canada, Romania[2], Colombia[3], Malaysia, Norway, Bulgaria, Australia[4], New Zealand[5], Japan[6], NepalI][URL="http://en.wikipedia.org/wiki/Wikipedia:Citation_needed"][U][COLOR=#0066cc]citation needed[/COLOR][/U][/URL][/I, Philippines[7], South Africa[8], Sri Lanka[9], Thailand[10], IranI][URL="http://en.wikipedia.org/wiki/Wikipedia:Citation_needed"][U][COLOR=#0066cc]citation needed[/COLOR][/U][/URL][/I, and the People's Republic of China[11].

hope this clears up your clearly very foggy brain