What are the signs of a pyramid scheme?

Question

Vorrei sapere il significato dello schema piramidale e come posso identificarne uno affinché non diventi una vittima in futuro?

Answer 1

In order to recognize a pyramid scheme, watch out for classic signs such as the pressure to 'hurry' and join, offers of ‘life-changing income’ and other requirements like paying out to sell the said product/service. Generally, pyramid schemes will use pressure techniques together with high hopes of unrealistic income in order to recruit people.

Comments

When someone:
- wraps their arm round you
- tells you about an exciting business opportunity
- reassures you it's not a pyramid scheme, even though you don't have such  concerns
-  is an old high school friend

It's a pyramid scheme

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The biggest sign is when they say “Wanna Be Your Own Boss?”

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I fell for a gifting group once. Even though it had the exact same structure as a pyramid scheme, the difference in context and stated purpose was enough for me to not see it. Fortunately I only sent one gift before one of my Facebook friends who I tried to share it with pointed out that it was a scam. That's the only time I ever fell for a scam, and I fell for it so publicly too, so it was really embarrassing.

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Red flag: Someone from highschool you haven't talked to in years hits you up randomly

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One of my friends invited me to his house for an amway presentation. I grilled the presenter so hard she actually started yelling at me and told me to leave  all I was doing was picking at flaws in her logic. Was a proud moment for me

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whenever you hear "this is NOT a get rich quick scheme" just know it's most likely a get rich quick scheme.

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"Do you wanna get rich quick?"
"Do you wanna work at home and make lots of money fast?"
"It's a multi-level marketing business."
-pyramid scheme

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I once had a "customer" at work ask me how a product worked. So I explained it to her. She then told me I had great salesman skills, and offered me a job interview for selling "Insurance." I figured it would be at an office somewhere. We did a webcam interview. The only problem was her "partner" didn't show his face, and kept trying to amp me up about how much money I would be making. Every time I asked about what kind of insurance I'd be selling, he'd dodge the question instantly with "We will get to that, but first you need to build a team, and recruit some more members." I immediately figured it was a pyramid scheme. But I didn't understand how he'd get money off of me, until he said that I needed to pay him $200 for a "license." Sadly, this isn't the first time someone has tried to "recruit" me, for something suspicious. One of my coworkers fell for this with hair cleaning products and ended up losing thousands of dollars.

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Pyramid scheme: When you have to pay a fee to work for them.

Real job: they pay you for training and the amount of hours you put in.

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Had this almost happen to my mom. I had to convince her NOT to do it. Oh did it take a lot of talking, math, and explaining. Someone asking for money to be put into a "pot" like a card table is a big red flag. Then asking 6-8 more people to do the same so you can start your own "pot" is another huge red flag.
She tried getting me to do it, not even 2 minutes of her explaining it, I figured it to be a pyramid scheme.

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I too lazy to sell anything to anyone or to recruit people. This is my built-in defense against pyramid schemes.

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How to spot a pyramid scheme:
Person who sat behind you in high school ten years ago hits you up on Facebook with a once in a lifetime opportunity to retire before you’re 21 by working a part time full time part time job where you’re your own boss

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In Philippines you can easily spot a pyramid scheme with the following:
- non-close friend suddenly DM'ing you
- the phrase "are you an open minded person?"
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When they say "it can't be a pyramid scheme, because pyramid schemes are illegal!"

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“Send this to 3 people you know”



hol up

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I wish I would’ve knew this this time last year .. being in one of there’s things damn near ruined my life . I look back and cringe at how brainwashed I was .. so embarrassing once you realize what happened to you . So depressing once you realize youre never going to “ make 10,000 a month online working part time” I’m honestly still recovering . Really it’s because they got me at my lowest point . Single mom working 2 jobs to make ends meet little to no time spent raising my child because I have to work so that we can survive . Me knowing I’m a hard worker I was told by this company that if I just worked hard enough , if I just wanted it bad enough it would happen for me . Well I worked hard, and definitely wanted it bad enough and it didn’t work out and I lost almost everything. The company shut down right when I was about to reach 2000$ a month ..

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One time I made a recruiter crack.
I was doing my best to fail the job interview...
Him: "I like you. You have a good head on your shoulders. Even though you're not our target audience, you would be perfect for our company. All you have to do is pay $110 for the membership cost"
Me: "Wait, I have to pay you for me to work here? If you want me to work for you, why don't you waive the fee?"
Dude blows his head gasket then starts saying how he hates college kids because they don't "get it". He went from being the nicest guy with a big smile, all of a sudden wouldn't even look at me.

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How to Spot a Pyramid Scheme

It involves you bringing in another person.

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"No no, it's not a pyramid scheme... it's a... trapezoid scheme."

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Walked into a job interview that turned out to be a pitch for a pyramid scheme. That was infuriating.

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Another Red flag:
When your friend who rarely (actually, never) invite u anywhere (especially if it is not your close friend) suddenly invite you for a drink and chill.

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When your highschool crush texted u after 40 years..its a pyramid scam.

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Hustlers university

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One of my friend got caught in an MLM. He was convinced it wasn't a scam and even tried recruiting me. Eventually he blamed himself for not being able to get rich off of it. He now works a regular job

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Remember guys: No one is actually THAT interested in you making money off of THEIR business.

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If they say it’s not a pyramid scheme

Its probably a pyramid scheme

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Thanks, I saved my loved one by showing her this content. She wasn't convinced at first when I explained pyramid schemes but this content made her understand.

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Another red flag:
If there is no contract that prove the company is legitimate and legal

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Easiest way to spot a pyramid scheme: claims that anyone can make money from home with no skills or training.

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My dad was recently offered a business opportunity, and since I read this content a few months ago I showed it to him. I was suspicious about it since he told me, so it made more sense for me to show it to him. Twas a pyramid scheme, plain and simple. Thanks for the very helpful content!

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if the job makes you pay to work for them; its a scam

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Red flag : "bro, lets have coffee sometimes, " "are you open-minded?"

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The king of the hill episode when Peggy got caught up in the pyramid scheme saved me a few years. The job I was offered was identical to the episode plot buying and selling “products for living “ .

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“Send this content to three people, and encourage them to do the same”

Idk man... sounds like a pyramid scheme

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1. If someone you don't know contacts you with a job offer without any prior specification, be cautious.
2. If the person avoids answering questions like "what will my actual task be?", be suspicious.
3. If the person says you have to pay a fee in order to get started, just walk away.
P.S. Be a bit self critical and realistic. Would anyone pay you that much for doing nothing at all? And if so, why wouldn't all the people do it already? The value needs to be created in order to generate money.

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'If it seems too good to be true, it probably is' is such a good quote. In the modernized world there's no convenient way to make money that easily by sheer good heart. It's a good way to learn how the world works, but it's also sad how some people want to commit to these schemes.

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Literally anything that involves you having to pay to get in and having to recruit new members

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If you hear: “be your own boss”
Run away, run far away.

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During my summer job I had at least 1 person a week trying to recruit me for a pyramid scheme. They prey on broke college students hoping they dont know any better.

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If it sounds too good to be true then it probably is.

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Simple, if it's "Too good to be true" it means too good to be true, like "invest in our company $10, and then you will got $1.000 next month"

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"The guy who recruited me has a Lamborghini now", "if you don't pay now, you will regret when your neighbors are driving a Porsche"

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"Are you an open minded?"

That's the queue to walk away.

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Facebook games in 2012: invite your friends to gain gifts
Me a paranoid: that’s a pyramid scheme!

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I was soo close to fall for this exact thing when I was younger. I told my dad about it and he warned me and told me about pyramid schemes. I should thank him again

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1. got to be a former classmate
2. Messages you on facebook to share their posts.
Smell a scheme right there.

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Whenever a highschool classmate who hasn't spoke with you in years contacted you to share an unique "business opportunity ".....Block them.

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Nearly got into this scheme. My friend offered me a job without me knowing that the job he offered was a pyramid scheme or a mlm type of company. He used sweet words in order to woo me into joining this type of scheme. I was hesitant to join but thanks to this content, I found out what the purpose of why my friend was eagerly and persistent of inviting me into the company. Thanks very much Ted-Ed. You saved my life.❤❤❤