Another Pyramid Con

trisontana

There is an article on today's "This is Money" website warning about the reincarnation of a women-only pyramid scheme. This time it's called WISE (Women's Investment Syndicate) but has al the hallmarks of the notorious "Women Empowering Women" scam . At the moment it seems to be operating in the Bristol / Bath area.

It has the usual pyramid scheme trappings of only conning specially invited "victims" (sorry guests), saying it's not for men as they cannot be trusted, and the 100% promise that you will make a lot of money out of it. Don't these people who get suckered into the scheme realize that no pyramid scheme can work, apart from a tiny minority? The mathematics are against it. I hope the people who are organising this scam get caught and locked up.

Astaroth

Whilst I do strongly disagree with pyramid schemes and would never be involved in one there are many more reputable schemes where the majority do make some money (though may not be as much when you considered the hours required). Things like Tupperware are the classics but I know a fair number of people making decent incomes from web only offerings.

trisontana

Astaroth wrote:

Whilst I do strongly disagree with pyramid schemes and would never be involved in one there are many more reputable schemes where the majority do make some money (though may not be as much when you considered the hours required). Things like Tupperware are the classics but I know a fair number of people making decent incomes from web only offerings.

The difference between pyramid schemes and Tuppaware is that the latter actually sells stuff. The WISE and Women Empowering Women schemes involves paying someone £3,000 and then recruiting seven other people who each have to pay you £3,000. It's just a big con.

rogue_element

I have reported this to my friends at 419eater.com, they will soon shut it down!

Mrs_Optimist

Is this similar to AMWAY?

trisontana

Mrs_Optimist wrote:

Is this similar to AMWAY?

I don't think so. With schemes such as AMWAY there is the pretence of some actual goods or products involved. With the sort I was warning about it just deals with money and nothing else. To join you have to pay £3,000 to the person who has recruited you . In turn you have to recruit 7 people who will each pay you £3,000. These 7 people then have to recruit 7 people each, and so it goes on.

It doesn't take a genius to work out that the mathematics just gets crazy and soon there are not enough people left for the scheme to continue. So the people at the top get their £21,000 but everyone below ends up out of pocket. This was demonstrated in an early scheme that operated on the Isle of Wight. Being a semi-enclosed community they soon ran out of people to recruit and the whole thing collapsed leaving many people £3,000 out of pocket and with friendships and relationships ruined.

Astaroth

trisontana wrote:

The difference between pyramid schemes and Tuppaware is that the latter actually sells stuff. The WISE and Women Empowering Women schemes involves paying someone £3,000 and then recruiting seven other people who each have to pay you £3,000. It's just a big con.

As I said, there are better and worse pyramid schemes - your original post implied all pyramid schemes were inherently bad.

Whilst not technically a pyramid scheme as you dont receive payment from the layers below those that you "recruit" I have always found the news paper ad and the unable to fulfil orders DVD/ Video scams the most amusing.

trisontana

Astaroth wrote:

As I said, there are better and worse pyramid schemes - your original post implied all pyramid schemes were inherently bad.

Whilst not technically a pyramid scheme as you dont receive payment from the layers below those that you "recruit" I have always found the news paper ad and the unable to fulfil orders DVD/ Video scams the most amusing.

I thought ALL pyramid schemes were illegal . No-way would I class Tuppaware or similar companies as a pyramid scheme. With those you just invite people to your house and try to sell them stuff. I imagine that the area manager gets a cut of the takings as well as the agent but that's just general business practice.

Astaroth

Tupperware, and others, are pyramid schemes, you get a cut of the people who you introduce's sales and a cut of who they introduces sales etc which is pretty much the definition of a pyramid scheme - at least this is how they operated in the 90s.

They are generally however considered acceptable as you are actually selling a product (though you still have to stump up a joining fee to get your demonstration pack) where as the worst ones you are simply selling the instruction manual on how to get people to join.

rogue_element

@OP do you have a website for this scam?

trisontana

rogue_element wrote:

@OP do you have a website for this scam?

Here is the original story :-
http://www.thisismoney.co.uk/news/columnists/article.html?in_page_id=19&in_article_id=417329&in_author_id=5