Determining the Pyramid Scheme

Nowadays, we seen a lot of offers and most of these business deals spawning in the internet that is indeed beneficial at the same time, threatening.

Here, there will be a discussion regarding the determinants: How to know that it is a pyramid scheme.


BUSINESS NATURE AND NETWORKING

Business comes in different ways - either financial, retail-based, distribution, rentals, and many more. And with the dawn of social media sites and the necessity of "extra income" comes arise, there comes the risk that some people who are deceivingly "business-minded" will suddenly take the hard-earned investments and poof. Say bye-bye with those money as the other people, particularly the ones at the top, will definitely take it.

Diagram: The Structure in Itself...

THE SIGN

So, what are the signs for an organization to be a Pyramid Scheme? Here are the following:

• Investing to a product that is almost impossible to sell.
• Recruiting people, wherein the majority of the org's income came from.
• A deal that says "instant cash" or any equivalent in the short span of time.
• Want some extra income? Well, that's low key approach right there.
• Once a member, it is nearly impossible to get recruits, even the most hardworking people experience it.
• Training sessions that are giving (selling, rather) guide materials.
• Insufficient infrastructure of all types, that one day it will find rare to find a recruit since all of those people are already members.

There are more signs regarding this scheme. Remember: Anything suspicious in a group must be check multiple times for the signs of fraud. One must need a research.

CONFUSING WITH MLM OR BUSINESS/INVESTMENT CLUB OFFERS

Don't take hasty generalizations just yet. We all know that most people are doing their best to get the thing that gets the world moving...money! (For the love of money is the root of all evil! - 1 Timothy 6:10) 

Not all pyramid schemes are illegal. There are legitimate organizations that are complying the laws of a particular state wherein they are in the guise of doing one thing, that is to sell products in a way that the sale of such products corresponds a deal with an innocent customer giving a deal to join a club.

Nah, there is nothing wrong about it. With the best of luck, blessings from God up above and some dosage of dedication in a specific company will give an individual a chance to get a price of his lifetime. Hooray! 

Legitimacy of business gives a person a nice, comfortable feeling of having such investments accrue as the time goes by, with a greater chance of having it successfully realized with a gain made from interest. However, being legitimate is not always the guarantee for a business to become trustworthy as a business analyst truly emphasize.

DETERMINING THE NOT OBVIOUS

Here are the instructions to determine a legitimate from scam (From USA'S Federal Trade Commission)

1. Find—and study—the company’s track record.
2. Learn about the product.
3. Ask questions.
4. Understand any restrictions.
5. Talk to other distributors. Beware of shills.
6. Consider using a friend or adviser as a neutral sounding board, or for a gut check.
7. Take your time.
8. Think about whether this plan suits your talents and goals.

Some added information. Click the picture to see the enlarged version of it.

IN LAY MAN'S TERM

All of these are part of the concept of the world where everything runs with money wherein anybody pushes themselves with sweat and hardship in order to have a better life. Networking is good, but there are scams running around the seams, lurking in the depths of online and offline environment, and scammers are waiting for bait. In other words, one must need research on the background of a networking business and refer it to a business expert in order to determine its system and its eligibility to do such. Better be safe and knowledgeable in investing money and earn rather than have it taken away.

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