Pyramid Schemes And Scams

A friend of my brother once decided to join a pyramid scheme.  The objective was to sell second-rate merchandise, and a cut of the profits would be passed up the chain.  The higher up the chain you were, the more money you got, because you will have recruited that many more people.

My brother’s friend would go door to door, either selling products and/or recruiting people to join him in the scheme.  Eventually he wised up to it, and left the program, but some others remain members for years, getting sucked in to a promise of getting rich quick.

What ends up happening is that the pyramid eventually gets too top heavy and ends up collapsing under its own weight.  Leaving the underlings holding broken promises and dreams.

How do you recognize these schemes?  This is where you have to do some investigation, and be smart.  Never sign up for anything or agree to anything without first doing research.  It is usually as easy as doing a search for the company.  Doing so will allow you to read reviews and ensure that what you are being told is completely accurate.

As always, be smart and use common sense.  Those are the best defenses to any scam that you may encounter.

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