Pyramid Schemes

Pyramid schemes exist also on the internet and millions of dollars are lost because they find easy prey. Today’s economy is unstable and unpredictable causing people to lose their jobs and in some cases their only source of income. These pyramid schemes disguise themselves as business opportunities when in fact they are nothing more than multi-level pyramid scams.

The Federal Trade Commission published a report back in 2004 saying that over one and a half million people in the United States lost money to these illegal pyramid scams. Losses exceeded more than two and a half million dollars indicating that many people were scammed more than once. The FTC went on to say that over ninety percent of all cases were prompted by an e-mail or an ad in a newspaper or magazine referring the victim to a web site showing a business or income opportunity that was nothing more than fraud.

So you need to know exactly what a pyramid scam or scheme is so you won’t fall victim to these criminals and lose any of your hard earned money or worse. What this type of scam does is recruit opportunity seekers that are required to pay a fee for joining. It’s one of those ideas that look good on paper but has no practical application. This scheme utilizes a down line, meaning the more people you recruit, the more money you will make. The problem is the more people that join will eventually cause the pyramid scheme to collapse due to over saturation. So the ones that are making all the money are the ones at the top or who actually started the scheme, meaning everyone else loses their money or investment.

Even though pyramid schemes are illegal in most countries little has been done to expose the scams and schemes that are out there or bring these fraudsters to justice. New scams and schemes are popping up all the time and some of these unethical schemes are disguising what they really do because they center their business model on a product. Many of these fraudulent programs use an information brochure, or e-book, or audio recording that instructs new victims on how to refer others. Some schemes have gone so far as to use physical products such as vitamins or computer software. However, it is a thin disguise, when you look past these scams you will see they are overpriced and the new recruits, or victims as I like to call them, will be forced to buy from their up line.

There are some things you can be on the lookout for and avoid becoming a victim of these illegal schemes.

1. You don’t need a complicated plan to buy or sell products or services anywhere.

2. If you see any kind of matrix, especially a forced matrix, don’t walk away, run.

3. If you see a down line or up line, be aware, investigate.

4. Look out for multi-tier networks, power legs, or any other ambiguous terms.

Even though not all multi-level programs are pyramid schemes or scams, it still pays to investigate thoroughly any program you plan to get involved with. Remember, pyramid scams and schemes are illegal in most countries. Personally, when I review or consider any type of business opportunity, and I see words and phrases like down-line, up-line, income matrix, and recruiting I stay away and move on to other legitimate programs.

To be in compliance with United States Federal Trade Commission Regulations, I must tell you that I, or my publishing company, may receive a commission from the sale of these products or programs. It takes a great deal of time to research, investigate, assemble, and publish, and to be honest, the few dollars  in commissions I, or my company, make in bringing you the best of the best in programs are what keeps my company going.  Allow me to take this time to thank you for reading this article and reviewing the following offers.

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