What is Pyramid Scheme An initial number of let’s say 10 people are recruited to market and sell the product without any office hours or office commitments. They are given a basic training, and told to work at their own time. They do not however receive a salary; their income is mainly based on percentage from the sales they make. A large part of their training includes how to recruit new members, and the promise that any members recruited under them will be paying them a percentage of their fees and the people under those recruits will also have money coming back to you in the form of an endless pyramid. The catch is in order to make the money you paid for the fee back, you are expected to recruit a specific number of new members, let’s say 3. So the initial 10 are recruited, and each of those is expected to recruit at least three more, so 30 new recruits are hired, each of which will recruit at least 3 more 90 new recruits are hired, making a total of 130, and this continues with more and more recruits, each of which is paying a fee for entering. Once the schemes sets off it usually spreads like wildfire, as more and more people are recruited in turns recruiting new ‘representatives’ of the company. Most pyramid schemes come it the shapes of really big organizations. When someone is recruited they are given pre-prepared impressive presentations, given seminars and lessons on how to sell the product, they are presented with videos of recruits from around the world who have made large profits, which are made available in the kit, which includes all the previously mentioned with the addition of brochures, advertisements and a number of locations where potential recruits can attend proper seminars presented by professionals from the company listing the reasons why their business is the perfect way to earn an extra income, potentially freeing yourself from your life sucking day job and becoming your main source of income. In the pitches, presentations and seminars, there is a repetition of the fact that your success is in your hands, It all depends on how well you do, in other words if you fail it is entirely your own doing and no fault lies within the company. What will be noticeable is that the seminars barely mention the products which are supposed to be sold, but the main focus is on how many new recruits you can make, and build your very own ‘pyramid’ which will benefit you as it grows, and so you walk out and preach the same logic to whoever you try to include in your pyramid, and they do the same to others. FxNet Team FxNet Ltd is a global, fully licensed Over the Counter (OTC) online Forex and commodities broker, regulated by the Cyprus Securities and Exchange Commission (CySEC). FxNet is located in Limassol Cyprus. FxNets mission is to reach and retain traders around the globe through exceptional customer service, integrity and continuous innovation that will provide our clients with simple, exciting and secured trading platforms. fxnet/news/what-is-pyramid-scheme
Posted on: Tue, 28 Jan 2014 15:04:48 +0000
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