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Have You Been Getting the Ole' Pyramid Scheme Q Lately?

In summary, a pyramid scheme is a fraudulent business model that promises large profits based on recruiting others, rather than selling products or services. If someone asks you to invest money in a business opportunity that requires recruiting, or promises easy profits, it is likely a pyramid scheme. If you suspect you are involved in one, it is important to stop participating and report it to the appropriate agencies. Not all multi-level marketing companies are pyramid schemes, but participating in one can lead to financial loss and legal consequences.
Deb Bixler
Deb Bixler
Gold Member
130
Lately I have been getting a lot of consultants asking how to deal with the old pyramid scheme question! I thought this was a solved problem but I have a great article/tool for those in the industry to refer their potential leads to if the old "pyramid scheme" question comes up!

It is a great resource to share with those wanna-be direct sellers who are unsure of the whole pyramid thing. Thought maybe your readers would appreciate it.

Includes scripts and checklists on how to research.
http://www.createacashflowshow.com/guides/what-is-a-pyramid-scheme
 
I think it's in the back of a lot of peoples minds when they are considering any kind of direct selling business and I think it's very important to train newer and older consultants on how to address this question. Thanks for posting it.
 
Nope. Never get this question/comment.
 

Related to Have You Been Getting the Ole' Pyramid Scheme Q Lately?

What is a pyramid scheme?

A pyramid scheme is a fraudulent business model that promises participants large profits based on recruiting others to join the scheme, rather than selling actual products or services.

How do I know if I have been targeted by a pyramid scheme?

If you have been approached by someone asking you to invest money in a business opportunity that requires you to recruit others, or you are promised large profits for little effort, it is likely a pyramid scheme.

What should I do if I suspect I am involved in a pyramid scheme?

If you believe you are involved in a pyramid scheme, it is important to stop participating immediately. You can also report the scheme to the Federal Trade Commission or your local consumer protection agency.

Are all multi-level marketing (MLM) companies pyramid schemes?

No, not all MLM companies are pyramid schemes. MLM companies that focus on selling actual products or services rather than solely recruiting members are considered legitimate businesses.

What are the risks of participating in a pyramid scheme?

Participating in a pyramid scheme can lead to financial loss, as the majority of participants will not make a profit. It is also illegal and can result in legal consequences for those involved.

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