Pyramid Schemes

Pyramid schemes are types of business model - most of which are illegal in many countries. These schemes are often confused with legal and reputable types of marketing initiative such as multi level marketing.

A pyramid scheme will basically aim to sign up individuals on the premise that they can make a lot of money from the scheme with very little effort. They are often marketed as 'get rich quick' schemes. To join the scheme the person will have to pay a fee. The basis of the money making element here is that you will then join the pyramid and, as you encourage other people to join the pyramid after you and to pay their fees, you will be given an income stream from the payments they make.

In some cases the companies starting these schemes will promise some form of products, services or goods that you can sell on rather than simply charging a cash fee. In any case there is little evidence that any pyramid scheme will actually make anyone rich. The only benefit to most pyramid schemes falls to the people at the very beginning of the pyramid who will make money on the people who follow them.