 How to track the performance of any mutual funds bfore investing...????? |
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 Swiss Lottery..? Have i won...? |
hi all .
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... |
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Additional Details
I am 44 and I work part time. I have no ... |
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baboo b | What is Pyramid scheme ? |
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toietmoi
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A con
Stay away from it |
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kvuo
 |
amway, quixtar, etc. etc. |
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mayacreatn
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Pyramid Scheme:A fraudulent moneymaking scheme in which people are recruited to make payments to others above them in a hierarchy while expecting to receive payments from people recruited below them. Eventually the number of new recruits fails to sustain the payment structure, and the scheme collapses with most people losing the money they paid in. |
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nitikaa s
 |
A pyramid scheme is a system of selling goods where commissions are paid to recruit new sellers. The commissions are based on the number of sellers recruited. The right to sell the goods is sold to an increasing number of sellers at lower and lower levels. |
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from my heart to your heart
 |
A pyramid scheme typically involves a few people at the top of the pyramid who get their friends and relatives to give them money in return for the chance to recruit more participants. Some illegal pyramids are disguised as multilevel sales companies. When the emphasis is on recruiting new members rather than selling products, then the organization is probably an illegal pyramid, even though it might distribute products.
Pyramid schemers often claim that attorneys general approve of the scheme, or that it is run by a legitimate professional or something with respect in the community, such as a preacher. However, pyramid schemes are illegal. Ask yourself before you join any multi-level sales opportunity whether or not you would buy the product.
If you join a pyramid scheme, chances are, you will lose your money. Worse, the people you recruited will also lose their money, and might ultimately bring a personal lawsuit against you. Then, you could be prosecuted by your state attorneys general office, and you may be forced to pay restitution to all the individuals you swindled.
Just remember this: To reach the 27th level of a pyramid scheme, an individual would have to recruit more people than are on the face of the earth to get his or her money back. |
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swati s
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A pyramid scheme is a system of selling goods where commissions are paid to recruit new sellers. The commissions are based on the number of sellers recruited. The right to sell the goods is sold to an increasing number of sellers at lower and lower levels.
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. Matrix schemes use the same fraudulent non-sustainable system as a pyramid; here, the victims pay to join a waiting list for a desirable product which only a fraction of them can ever receive.
There are other commercial models using cross-selling such as multi-level marketing (MLM) or party planning which are perfectly legal and sustainable. Most pyramid schemes take advantage of confusion between genuine businesses and complicated but convincing moneymaking scams. The essential idea behind each scam is that the individual makes only one payment, but are promised to somehow receive exponential benefits from other people as a reward. A common example might be an offer that, for a fee, allows the victim 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 (or at best a very few) wins in swindling his followers. Of course, 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, nowadays usually by having a cover business, a product or service. |
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Screaming Eagle
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It is an illegal way to cheat people out of their money, which is almost as bad as an MLM, even though MLMs are legal. |
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me_girl_06
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I seen a programme about it once. Its a con where the people at the top make all the money and people at the bottom of the pyramid lose alot of money. Don't ever do it!!!! |
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amanda
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Also called a Ponzi scheme.
It is usually when you pay money to someone and they say you will get an awesome return back to you in some period of time. During that time they are collecting money from many people to pay you back. Well the many people at the bottom of the pyramid get screwed over. |
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mlm_sifu
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The structure is just like the pyramid in Egypt. Guess you can deduce what it is from here. |
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Baby
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It is a design by some certain group of people to loot money from you. |
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Sean A
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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. Matrix schemes use the same fraudulent non-sustainable system as a pyramid; here, the victims pay to join a waiting list for a desirable product which only a fraction of them can ever receive." |
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stock.geek
|
Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.
I am sure that you can get your answers in this website.
http://investing.sitesled.com/
Good Luck and Best Wishes! |
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BettyBoop
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Any type of financial investment where one or two people are at the top - they collect money from those underneath them and so on and so on. The people in the top layers can make money but as you get farther and farther down, people lose money.
I said investment because that is what the idea is sold as - it can come in many different forms be it items for sale, ideas for sale etc. There have been some really well know companies set up in a pyramid formation - and some of these businesses are legit - i.e. direct sales. But unless you are near the top of the food chain you can expect to make money only on what you manage to sell.
A traditional pyramid scheme is as others have said a fraud from the get go. However, the more dangerous ones are those having the appearance of legitimacy. Basically if any deal sounds too good to be true it probably is - and you should thoroughly check it out before getting involoved. |
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