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Just me | What does it mean when it is said a business is a pyramid scheme? |
I want to know about Quest International.
Additional Details
Quest Int'l is a co. based in HKG and claim to follow Binary commission plan..is it a pyramid? |
 |
 
JackN
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A "pyramid scheme" is illegal. The U.S. government agency that regulates all networking-type businesses is the Federal Trade Commission. Not all businesses with a pyramidal structure, are illegal. One of the keys to tell whether an MLM or "networking" or pyramid-structured business, is legal or not, is "Does a product or service change hands, in return for the money invested, and is/are the product(s) or service(s) a reasonable, fair-market value for the money?" Another key question is, "Where are the profits made? Primarily from the legitimate sale of fair-market-value products or services (legal), or primarily from entry fees (illegal)?" A Multi-Level Marketing (MLM) business that is very much legal and ethical, and is used by the FTC as an ideal model for all others, the grand-daddy of them all, is the Amway business, since September 1999 known as the Quixtar business. Both Amway and Quixtar are sister companies and both are still growing by leaps and bounds. Amway started as a soap sales and mfg concern in the basement of two men's homes in 1959. Rich DeVos and Jay Van Andel. Both are multimillionaires and they and their eight adult children, who now run the corp. HQ, are very respected in their home community of Ann Arbor, MI and around the world, have met with Presidents, kings and queens, etc., and the business is now in over 80 countries. I'm in Harrisburg, PA and know nothing about Quest International, but I have been in Amway/Quixtar a while and there's not a better place to be than the team I'm on. The products are the best in their class and are great value. The convenience is unparalleled. the sky is the limit with regard to how much you can earn. E-mail me if int. in further info. Jack |
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Doctor J
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A Pyramid Scheme is a bogus business that pays the 'early investors' a return on their investment by giving them some of the money coming from newer 'investors'. Eventually the 'scheme' collapses and the later investors lose everything. Note: Social Security is a pyramid scheme.
I do not know anything about Quest Intl.
Best wishes. |
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timeneversleeps_77
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The person at the top makes money of each successive person that gets into that business, and each successive person makes money of the person below them and so on and so on. |
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IMHO
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Tell 10 friends to each tell ten friends (and so on) to send $$ to the people on a list. They send money to the first person on the list and then they move their names up one space. This works on an exponential priciple. However, the world population isn't big enough to support it very long except for the few who started it. (And it's against the law.)
A lot of companies are similar to this set up and promise you huge payoffs or salaries. All you have to do it sell the idea to other people who then become your lower associates and they report to you and you make a percentage along with the person who recruited you. Trouble is that only a few of the founders of any of these companies really make it big. |
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lucky
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#1 Business is directly propotional to your circle of
influence.
#2 Businessman should be able to delegate effectively.Because that is the basis of business,you can't do everything of your own.You should do the thinking part. |
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the_illusionist_03
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A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. Pyramid schemes have existed for at least a century. In addition, other methods of conducting business known as multi-level marketing (MLM) and as "matrix schemes" often closely resemble pyramid schemes (although unlike pyramid schemes, which are almost always frauds, MLM and matrix schemes are in many cases regarded — at least legally — as legitimate business methods).
Most pyramid schemes are attempts to confuse potential consumers into complicated but convincingly fool-proof money making scams. The essential idea behind each scam is that the individual only makes one payment, but somehow they are promised to receive exponential benefits from other people as a reward. A common example might be that a victim is enticed with an offer that, for a fee, allows them to sell the same offer to other people. Each sale includes a fee to the original seller. Clearly, the fundamental flaw is that there is no end benefit; the money simply travels up the chain, and only the originator wins in swindling his followers. Furthermore, the people in the worst situation are the ones at the bottom of the pyramid: those who subscribed to the plan, but were not able to recruit any followers themselves. To embellish the act, most such scams will have fake referrals, testimonials, and information.
Although pyramid schemes have been declared illegal in many countries, they still persist in various forms. |
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Jon
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In my opinion (though uncustomary and against the grain) one example is the NYSE. After the IPO it comes down to what someone is willing to pay you for your stock. Unless there is a sizable dividend do you really own a company that you would allow CEOs who fail to receive a severance pay worth millions? No problem here though as everyone has bought in.
hmmmmm |
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