How can you detect a pyramiding scam?

Answer 1

The best exclamation of an illegal pyramid scheme, is one which there is no legitimate product or service being sold. The pyramid laws were a result of what was dubbed as the "Ponzi Scheme" where Charles Ponzi was recruiting investors into a program to buy discounted stamps, but he never bought the stamps. Just used the money from the new investor to pay off the early investors.

A pyramid is when someone collects or earns money for nothing more than recruiting other people to collect money. They collect money from the new person in the pyramid to pay off the top person in the pyramid.

There is a full article being published in the next issue of the "Levels2Success" newsletter on pyramid schemes and the background on Charles Ponzi.

Answer 2

When the program does not emphasize making money from selling the "thing" or service and instead emphasizes bringing other people into the program and making a percentage off their sales, you may be dealing with a pyramid scam.

Answer 3

pyramid scam usually invites an investor to purchase some products/ services which is sold for higher value than its actual cost so that those who invited you benifits from your investment and/or your sales. it becomes a scum when you are not able to make a sale thus they ripped you off with your invenstment. this is a tricky business.

ask people arround. and ask your trade beauru about these companies posibly they are on their watch list

Answer 4

When they send you a list of names and tell you to send everyone on the list of names money. Then tell you to put your name at the end of the list. Doesn't work.

Answer 5

If anyone says "This is not a scam.", it's probably a scam.

Answer 6

when they sak you for hundreds of pounds for a load of paper, and, then ask you to get other people to join and offer to give you a cut...