Pyramid Model or say Pyramid scheme both are the same thing. In Pyramid model participants make money by recruiting other people in the network. Pyramid model is basically a network based business model in which end result is nothing means no real investment or sales of any products or services to the people.
Pyramid model typically work as a network, where individuals pay their “joining fee” or “donation” to people further up in the pyramid, in the expectation that they themselves will get paid by new recruits who join further “down” the pyramid.
Pyramid schemes are nothing but the fraud schemes, scams and illegal in mot of the countries including Albania, Australia, Switzerland, Nepal, Brazil, United States, France, China and many more countries. These types of schemes have existed for atleast a century, some with variations to hide its true form.
Many people believe that multilevel marketing is also a pyramid scheme.
Only very few people of top level in the pyramid scheme make money and rest participants generally loose their money in hope, that they will make good money in return of small investment. Money simply travels up the pyramid. It sounds like an easy way to get rich. One hardly realizes that the only way that anybody makes money in a pyramid scheme is by taking it directly from other participants mainly their friends, relatives and co-workers.
In Pyramid Scheme the essential idea is that suppose Mr.Y makes an initial payment and joins this scheme. Now he will earn money only when he will recruit others like him who will also make this one time payment. They then go to recruit others. Mr.Y gets cut of each participant who are involved below him. He is thus promised exponential benefit as the business expands.
Pyramid model typically work as a network, where individuals pay their “joining fee” or “donation” to people further up in the pyramid, in the expectation that they themselves will get paid by new recruits who join further “down” the pyramid.
Pyramid schemes are nothing but the fraud schemes, scams and illegal in mot of the countries including Albania, Australia, Switzerland, Nepal, Brazil, United States, France, China and many more countries. These types of schemes have existed for atleast a century, some with variations to hide its true form.
Many people believe that multilevel marketing is also a pyramid scheme.
Only very few people of top level in the pyramid scheme make money and rest participants generally loose their money in hope, that they will make good money in return of small investment. Money simply travels up the pyramid. It sounds like an easy way to get rich. One hardly realizes that the only way that anybody makes money in a pyramid scheme is by taking it directly from other participants mainly their friends, relatives and co-workers.
In Pyramid Scheme the essential idea is that suppose Mr.Y makes an initial payment and joins this scheme. Now he will earn money only when he will recruit others like him who will also make this one time payment. They then go to recruit others. Mr.Y gets cut of each participant who are involved below him. He is thus promised exponential benefit as the business expands.Such business seldom involves sale of any real product or service. The flaw is that there is no end benefit. To know more about this scheme you can visit Wikipedia:Pyramid Scheme and learn about it. I found this link really useful for one's who are interested in this.
Related Articles
No comments:
Post a Comment