I'm not killing your dream, I'm trying to warn you that you may very well be committing a crime

I see people still do not understand the concept of product sales. Every Tom, Dick and Harry in the world can sign up for your program but if the money being paid out is being generated by people signing up and purchsing (Or even required to sign up to purchase) it is a Ponzi Scheme Period. If the product is not being sold freely with no conditions of becoming a part of the structure to people outside of that structure it is illegal and subject to prosecution under the law.

@wendy the Feds will will shut these schemes down and when they do the top people that have created the scheme have distanced themselves from it, leaving those who made a little money holding the bag. The scammers set it up take what they can and run, leaving the poor saps that thought they were building something to deal with the crap.

Then the scammers start all over again with a new set of gullible victims.

It is important to do your own research into any business you are thinking of getting involved in, especially online businesses. Many of them will specifically tell you that they have been checked out and that they are totally legal, Dont believe a word of it, these are usually the ones which are likely to end up being closed down by the feds!

If The Feds Move in on a Ponzi, all the assets are seized, and anyone involved in that business will not only lose all their money, but they may also

Yes we all should get an understanding of where we stand legally.

Very helpful info Cheryl for online programs as well as brick and mortar programs. Everyone in business should keep up with the legals of your niche.

@Pierce lotteries are gambling. And yes we already went through the fact that pretty much every legal business is based on the pyramidal structure. It does not change the fact that pyramid schemes are unsustainable scams.

A legitimate business pyramid structure is based on employees at the bottom of the structure who will be compensated for their time by a paycheck. These employees are not required to pay those above them to be in this legitimate business structure nor does their paycheck

Good post. How about this. Do most of you live in a place that has a government lottery?
A bunch of people give in there money and only a few people get paid. Is that not a basic
ponzi scheme?

Almost all MLM is based on the same pyramid building idea. The only thing that makes them legal is the member paying for the product or a tangible service they can make use of.
the basic pyramid is still there and is how most mlm affiliate payment plans express themselves.

Now the question is

APSense valuable information.

Well done Cheryl this is the common assumption people explore before any investment, great intel well done enjoyed reading. Explaining something clearly is made a important as knowing right from wrong, creating a sense of urgency and perfection, due diligence like Will says.

Brandon, if you think and look around, more and more people dont wanna do anything, they just WANT money to rain down. Most younger people today, NOT ALL of them, live home till theyr +35 and dont even help out at home.
But I agree alot to what you say, but what does it help when they wanna get paid fmore for less they do...
Worlds gone mad!
Sig

One thing for sure.. get away from "making lots or thousands of money the easy way". Why not stick to the conventional way of making HARD earned money. Thanks for this article.

Great article. I wish more people would do their due diligence and check out the companies they got involved with before they joined. So many scams on the internet now days.

So true so true...Your Right! :)

Sig

No Sigurd I understood. That is why I said it was unfortunate that 'pyramid' was used to label the scam. It generates a lot of confusion between what is a Pyramid scheme and what is a viable legal business structure.

This is true Rona and that's why I post referring to third party facts. It's up to the individual to take heed of the facts or ignore it. There are a lot of things that I personally believe are scams that are legal and there are some things illegal that I see nothing wrong with, but in the end when you are talking about the law, my opinion, your opinion and everyone else's opinion must bow to the current enforcable laws as written.

cherly i agree in your article here..98% I just put a sample that all should know, when we think. All is pyramide structure, if not It wouldnt make the wheels turn. :)
No attack from me, I hope you did understand it.

this info is very good.
Sig

Forewarn is best warn, Cheryl, and all you can do is put the information out and it’s up to that individual to take heed. Thanks for sharing!

The use of the term Pyramid to describe these things is unfortunate because yes pretty much every business follows a pyramid like structure. The thing is a pyramid as it applies to scams is unsustainable for two reasons. First you cannot exceed the population in recruiting people and when you reach the end of the population those who are brought into it have no way of recouping what they have put into it. and two there is no sustainable cash flow. all of the money is simply brought into the p

Good info indeed. And yes there are alot of stuff on the net, and thats not only in business. But I have allways asked one thing. People talk about Pyramides..well all is like a pyrmaide really..in work etc etc...
on top The BIG Boss, then a few "small Bosses" and then even some more below them, like supervisors, then even a few more having the Workers a t the bottom...if you look thats really the Pyrmide... Even the Goverment is build like Pyramides... ;o)

I do know there are many strange

I like this informacion!