The Pyramid Scheme

The so-called Pyramid scheme has been one of the biggest factors to why the multi-level marketing companies have been tainted, even if they don’t practice this business model.  This scheme has a strong marketing tool that can get people quickly hooked, and it is only in the long run when they realize that they were fooled and lost money along the way. The Pyramid scheme is a huge temptation and is seen as an easy way for people to become financially stable. However, people tend to forget about credibility, and the background is checking the people who they invite them to that type of business because they get excited with the possible outcomes.  

 Pyramid Scheme

The business model of this scam benefits the one person who sits on top, as well as the next few generations of his or her downlines. The upline tries to present people business that allows them to earn money by two ways, first is selling products, and the second will be recruiting people. However, before they can start their work, they must invest money for the money’s operations, which every new member must do. Each line of people who can recruit new people will get a cut from the investment that is given to them, but what they do not know is that the rest is going to number one guy on top of the Pyramid.  

During the vasayo scam, a lot of people were influenced to join the team, and it was easy because people were so confident they could recruit people and earn a huge amount of money. However, since the majority seemed uneducated about this scheme, they were all surprised to see that the entire business just blew up on their faces. Since there is an unlimited number of people to join the program, it tends to get too big for it to become sustainable.   

This means that majority of the people who are in the lower level of the pyramids who invested a lot of money, probably won’t be to earn money, or even get a return on their investment. One of the main reasons is because the investments of all the people weren’t even used the proper way, so wouldn’t have been any progress of the so-called business even to occur. It is a time bomb, the guy on top will just milk the opportunity to horde as much money as possible, and just wait for the business to die on its own, leaving everyone lost.  

If you do not want to fall victim to this kind of scam, you must be familiar with the Pyramid scheme and know the features that show that it is a scam. When you are being invited to a business meeting, make it a habit not to give a decision right away, get all the details, and review the business plan and model before shelling out any amount of money. If you aren’t sure what you are getting yourself into, you can always ask friends and family what they think about the proposed building.