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There is a getting money scheme called a pyramid how do i start one?

2007-03-06 09:45:35 · 3 answers · asked by tweetstuff27 1 in Business & Finance Other - Business & Finance

3 answers

Have an excellent idea, market the hell out of it, and hope you don't get audited by the IRS or shutdown by the FTC.

2007-03-06 09:49:19 · answer #1 · answered by mktgurl 4 · 0 0

A pyramid scheme? Depends on what country you are in. In the US they are illegal.

However, if you must know. The whole concept is to get people to join the pyramid and give money to those who recruited them. You recruit like 4 people and they each give you $100. You tell them that they go out and recruit 4 more people for $100. They keep $75 and pass $25 on to you. Each of those recruits get someone to join. Everytime someone joins, $100 is paid to a recruiter and a portion of that makes its way back to the top (you). In the end (pyramids do not last forever) you will have made a lot of money and there will be some of the people that you recruited that made a lot of money, but for the most part everyone who joined the pyramid is going to lose what they put into it.

To get people to fall for this, you have to somehow get them to believe that it is a business or something. People won't just hand over the money unless you do. There was something called birthday clubs awhile back. It was a pyramid scheme where you paid like $1000 to join but within a year (like on your birthday) you would get $5000. You had to get people to join the club for you to be eligible for it though.

Wiki has a nice article about it.
http://en.wikipedia.org/wiki/Pyramid_scheme

2007-03-06 17:54:50 · answer #2 · answered by A.Mercer 7 · 0 0

Google "Charles Ponzi"

Then read very carefully all you can find out about him, including the circumstances of his death.

See why pyramid schemes do not get money yet?

2007-03-08 00:56:35 · answer #3 · answered by Wolfman 4 · 0 0

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