A scheme based on pyramids is a fraud built on an unprofitable business concept. A few years ago, businesses of this nature were popular. We all think that this is an easy approach to generating passive income and a path out of poverty.
What exactly is a pyramid scheme?
A pyramid program is an unsuccessful business strategy in which initial investors profit by recruiting new participants rather than by actually selling goods or services.
The program is based on the recruitment of newbies.
For entry into the scheme, new investors must make an up-front payment. The initial investors are repaid with the funds raised by the new hires. If the newcomers are successful in signing up more people for the program, they will get payments.
My Experience
I could remember a few ones that I did then, namely H2i and Swiss Gold. I was Introduced by my close friend then, he was able to join the program on time and he was earning already.
The program looked promising and he was able to draw the scheme for me and how I can go about it easily. I was convinced and I tried my luck.
I started to convince people, but people are not turning up, so I told my friend about it.
He replied that if I have some cash, I can sign up for more than one account via my siblings' names and details.
I will be paid for the signup and I will move on to the next stage.
I loved the idea and I opened three accounts. I was paid a profit on each of the signups, but it wasn't up to the amount I invested in the scheme.
After much lecturing, I was only able to introduce one individual. I ultimately lost my hard-earned money since I was unable to find new members and the scheme was only designed to generate revenue through recruiting rather than the sale of goods or services.
The Pyramid Scheme has been rebranded and people are not aware.
Some investments are going on nowadays that are pyramid concepts, but investors are not aware.
How it works
They called it an investment scheme, whereby you make payment for joining the scheme. Some are not selling any products or services.
They are also in stages, you will be paid 50% of your recruiters, the more recruiters you have, the more your level increases.
If you didn't invite anyone, you won't leave the first stage. You can also open many accounts as much as you like and you can fast track your steps if you have some cash, to become a top earner.
Some convinced their members that it was an affiliate marketing program. This is nothing but a big lie, an affiliate program does not work like that.
An affiliate program sells products or services and then compensates its marketers for the purchases made through its affiliate links. This distinction is obvious.
I have enlightened my friends that are already victims of this rebranding of a pyramid scheme and I think of writing an article about it to help someone.
Make sure you understand the type of investment you are joining. A lot of programs are now hiding under affiliate programs.
Note: I'm not a financial adviser, this article is for educational purposes and it's based on my opinion. Make sure you do your own research on your investment and invest wisely.
