Pyramid Schemes: Don’t Get Caught Up

There are many companies out there that promote the chance for you to strike it rich, or even just make a bit of extra money. In the classic scenario, participants in the pyramid scheme, try to make money solely by recruiting new members into their program. These schemes make promises of incredibly high returns in very short periods of time for doing nothing other than investing your hard-earned money as well as getting others follow suit.

The con artists behind the pyramid scheme will sometime go to great lengths to make everything seem legit and nothing more than a multi-level marketing program. Unfortunately, despite these promises and claims to be legitimate and provide you with real products or services, they instead use your money and the money brought in from new members in order to pay off the early investors in the company. There comes a point that no matter what, the pyramid will eventually collapse. The pyramid simply gets too big to manage, collapses, and the promoter is unable raise enough money to pay off older investors. So essentially when this happens, everyone loses their investment and everything crumbles and falls. Don’t get caught up in a pyramid scheme. If an investment sounds too good to be true, then it probably is!

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