Pyramid schemes aren't illegal.
Odd. Everything I've ever read and continue to read about pyramid schemes calls them illegal and fraudulent, incl. pubs from the FBI and FTC.
So what are legal pyramid schemes?
Pyramid schemes aren't illegal.
"Multi-level" or "network" marketing is a form of business that uses independent representatives to sell products or services to family, friends, and acquaintances. A representative earns commissions from retail sales he or she makes, and also from retail sales made by other people that he or she recruits. Examples of well-known multi-level marketing companies include Amway and Mary Kay Cosmetics...
Pyramid schemes claim to be in the business of selling products to consumers in order to look like a multi-level marketing company. However, little or no effort is made to actually market the product. Instead, money is made in typical pyramid fashion...from recruiting other people to market the program. Sometimes, new "distributors" are persuaded to purchase inventory or overpriced products/services when they sign up.
Pyramid companies make virtually all their profits from signing up new recruits and often attempt to disguise entry fees as the price charged for mandatory purchases of training, computer services, or product inventory.
Pyramid schemes are not only illegal; they are a waste of money and time. Because pyramid schemes rely on recruitment of new members to bring in money, the schemes often collapse when the pool of potential recruits dries up (market saturation). When the plan collapses, most people, except the few at the top of the pyramid, lose their money.
I don't consider one being legal and one not an excuse for roughly the same ethical practices, sometimes the same law-breaking (Amyway has had to pay out due to laws against pyramid schemes at least twice, so far, in the U.S.).Many US states and countries have laws against pyramid schemes. You may be getting them confused with multi-level marketing schemes like Amway.
s.
Which is good because we don't need the government telling businesses how to operate.
if you see an indian guy in best buy approach you, he's probably pushing quixtar / amway.
I don't consider one being legal and one not an excuse for roughly the same ethical practices.
I do!
I drink my Herbalife tea to get a buzz, then open the package with my Cutco knife. If the order is incorrect, I threaten to sue and show the salesperson my Prepaid Legal ProtectShield card. Works every time.
I do!
I drink my Herbalife tea to get a buzz, then open the package with my Cutco knife. If the order is incorrect, I threaten to sue and show the salesperson my Prepaid Legal ProtectShield card. Works every time.
Odd. Everything I've ever read and continue to read about pyramid schemes calls them illegal and fraudulent, incl. pubs from the FBI and FTC.
So what are legal pyramid schemes?
If Amyway to only exist as a single business, rather than two, how it would not fall apart? Their success is based on having a MLM system, which itself is not going to be sustainable, combined with a business of selling themselves to new recruits, to keep churning the bottom, combined with enough money going into legislator pockets to not get any definitions of illegal schemes to include theirs, if possible.Terrific. However I was addressing your blanket statement that "Pyramid schemes aren't illegal" which is incorrect.
-KeithP
Used to have a roommate who was hooked/lined/sinkered Amway. Nice enough guy but, wow.
The "inspirational" tapes (yes, I said tapes) he used to listen to every morning had all the feel of Moonies/Scientology/Jonestown cults.
To this day it gives me the heebie-jeebies to think about.
The "inspirational" tapes (yes, I said tapes) he used to listen to every morning had all the feel of Moonies/Scientology/Jonestown cults.
