Recognition Of Pyramid Selling Scheme

How Do I Recognize A Pyramid Selling Scheme?
Posted 1 year ago  | 
Corporate Law
Corporate Law

1 Answer(s)

Soumya
Advocate

Many pyramid schemes often disguise themselves as sellers collectors' items, software, training programmes, etc, when all they are interested is to make a quick buck through recruitment. Members of the public who attend sales talks must be vigilant to such schemes. Illegitimate MLM schemes usually share the following characteristics:

-When the promoter hype about how easy it is to earn money, people can get very rich in a very short time and that the way to earn money is by recruiting others to join the scheme;

-The so-called product that you are supposed to sell is not something you would normally buy at its price;

-Participants are required to invest money into the scheme, whether in the form of a joining fee, or buying inventory.

-Remember - there is no easy money, you must believe in what you are selling and you should not put your money at unnecessary risk.