Spotting a Pyramid Scheme Isn’t Alway So Easy
It’s important to understand the company’s compensation plan; yet, that is sometimes easier said than done, because most plans have complex formulas.
Since there’s no easy way to spot a pyramid scheme, take the following into consideration prior to joining a new opportunity:
What’s the track record of the company?
What are the products?
What claims are made to back up the product?
Are the product competitively priced?
Will the opportunity and products appeal to a large customer base?
Is there an up-front cost to join the plan?
Are you committed to making a minimum level of sales each month?
Is there a requirement to recruit new distributors to be successful in the plan?
Do your homework and ask these questions prior to jumping into a new opportunity:
Is there hard work involved or am I being sold on getting rich quickly with no effort?
Are the claims reasonable or do they seem too good to be true?
What are existing customers saying about this opportunity? Do they sound genuine?
Do I get support when I join or will I be left to my own devices?
Is this a short term business opportunity or is it proven to feed my family for a long time?
Active income versus passive income?
What am I investing in? Is it just information (which I can get free) or is it a REAL product that will serve me even if I don’t make money?
Does it involve any high-pressure selling or bait-and-switch tactics?
Do I believe in the mission behind the income? Am I changing someone’s life while making money? Am I helping people or just trying to get their money?
Can a complete newbie make money with this?
Do you need tons of technical skills to make it work?
Are there any hidden fees?
If an opportunity sounds too good to be true, it probably is. Common sense will tell you that it’s probably a scam. If you believe the offer is a pyramid scheme, don’t participate. It’s highly likely that you will lose money; and, you could be breaking the law.
If you think you might already be participating in a pyramid scheme, end your involvement and report the company to the Federal Trade Commission.
Good Luck!
Deborah Lynne
Spotting a Pyramid Scheme Isn"t Alway So Easy
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