sock exchange thru the mail, pyramid scheme....?

Question

I got this letter to send one pair of socks to the name at the top of the list and then write the name of the person who sent it to me on the #1 spot and my name on the #2 spot . So I wasn't adding my name to the bottom of a long list like most chain letters... I talked to one of friends and she said it doesn't work, no matter what. I'm supposed to get 36 pairs of socks for the price of one... Why doesn't it work, if everyone participates?

see example:
http://members.tripod.com/oziahz/sock.htm

Answer 1

Yeah, it's a form of pyramid scheme. Might actually be neat if those you send it to actually participate. But most won't. As long as you know you might be out a pair of socks and postage, you can still try it.

Answer 2

*If* everyone participated, then it would work (for a while). The catch is that not everyone is going to participate (in fact, very few people will, unless you know the right people and are very, very persistent). In a pyramid scheme such as this, usually a few people (the very persistent) make a little bit of money (or socks), and everyone else loses a very small amount of money.

If you think about it, it isn't possible for everyone who gets this letter to mail one pair of socks and get thirty-six back. (Where are all these socks *coming from*? The number of socks received must be equal to the number mailed.) For every extra pair of socks some lucky person gets, there is one person who mailed a pair of socks and didn't get *any* socks back.

Answer 3

So if you get your thirty six pairs of sox in the mail. Will you send money the next time you get a chain letter?

Sounds like this is trying to build your confidence for the next offer and identify you as a potential mark.

Answer 4

Often, it's hunter and prey relationship and sad to say with this scheme we will always be the prey and those to follow after us.

Answer 5

yeah, it's a pyramid scheme.