How To Know If Your Business Is A Pyramid Scheme

If you are anything like us, you have probably gotten roped into your fair share of pyramid schemes. Charismatic speakers, amazing opportunities, levels of success, selling to friends, shame, and debt are some of the amazing memories associated with your ride on the pyramid scheme train.

Because of the huge monetary loss commonly associated with pyramid schemes, we want to instruct our readers on how to sniff out the difference between a business opportunity and a debt opportunity.

Multi-Level Marketing

If someone tries to recruit you into a multi-level marketing company, that means that they want to sell you on their pyramid scheme. Full stop. There is almost no difference.

Basically, multi-level marketing aims to sell bulk products to individuals instead of selling products at retail prices, while telling the individual if they sell their items at retail prices, that they will make a lot of money. This often ends up with the person who buys items in bulk with a lot of worthless stuff stockpiled at their home. The most lucrative way to make money in this process is to recruit other people and have them in your “down-line,” thus perpetuating the myth that if someone buys a whole bunch of stuff for bulk pricing, they can sell it for profit.

They Ask You For Money

A normal job does not ask you to pay to make money. If you are an accountant, you are not asked to purchase clients to work for. The same goes with lawyers, teachers, and any other honest profession. If you are told to buy a product to sell to others, run to the hills and never look back. It’s a pyramid scheme.

They Sell You On An Opulent Lifestyle

If someone is trying to get you to join their company, and they tell you that you can work 3 hours a day from home while driving a Ferrari, something doesn’t add up. Why would they ever need to openly recruit people if that was the case? There’s a term for it: cube plan? Sphere Agenda? Pyramid scheme, perhaps?

I hope this article illuminated some of the telltale signs that the business you are being recruited for is a pyramid scheme. If you still want to join, that’s fine, but don’t pretend like didn’t warn you.