How to Spot a Pyramid Scheme

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Don’t confuse a pyramid scheme for a legitimate opportunity.

See The American Dream Denied: Herbalife Victims Speak Out:


tjlok says:

amway, simple

Hollyann Rose says:

If a job is basically only commission, it's most likely a pyramid scheme.

Mcnello says:

How do people actually fall for that shit???

DunkinNugget says:

Dude, this isn't a pyramid scheme lol it's a legit business model, there's a reason the government doesn't come down on these companies and it's because it's as legit as they get. Yes their business model is different and not many people understand it and it's also literally not for everyone.
These companies sell a product or provide a service, you don't have to buy it and that's it.

Ancap Zombie says:

Sounds like a cutlery company that tried to get me to be a distributor. They'd sell you "premium" knives to sell door to door. Even as a distributor, you'd buy them above market price, so of course no one would buy them for you without being extremely gullible.

Luis Fernando Vilches says:

I remember them offering a "job" to me when I was a freshman in college.

The Job was to go out and sell knives, when I said "sure, I can give that a shot"
they replied: "Okay! So we can give you 10 sets for $$$ and if you need more just come back and we can give you more"
me: Wait… I thought I was selling them, not buying them.
Them: Well you buy them from us, and then you go out and sell them yourself.
me: Why can't I, you know just sell them and you pay me a commision afterward?
Them: You can make more money this way, we sell them to you at a low price and then you go out there and sell at a higher price… you would make more money than if you just got a commission.
Me: Then why do you need me? Why not go out and sell them yourselves and cut out the middleman – you'd make more money if you sold it at the price that you're suggesting I sell them at. Unless you know that you can't sell them at that price.
Them: Well, we're giving you a discount on that price because you're buying in bulk.
Me: Yeah…. no. I'm willing to go out and sell these for you. But I am not paying you for the opportunity to "work" for you.

Luis Fernando Vilches says:

If you have to purchase the product and then go out and sell the product yourself… its a pyramid scheme

Phil Matic says:

World Financial Group

melovetolaugh says:

Uuuuugghhh i hate those people. They’re very pushy and force you to join them and most of the time ruin whatever events during that time you’re with them. Smh.

dimitris tz says:

OrganoGold is a prime example

PhoenixAngel429 says:

Kirby vaccums was bad for this where I live and preyed on information you provide on the state's unemployment site. Haven't gotten called by them recently think they realized poor people can't afford their product and flopped

DIY MAN says:

Lucky for me i will never be dragged in to this shit. Simply because i suck at selling products. To the point that i can't convince a person stuck in the Sahara desert to buy glass of water from me lol

LMA says:

I consider these multilevel marketing/network marketing model to be pyramid schemes with relief valves. Instead of the entire system imploding. A few people at the bottom are screwed with the bill. And if you fail, it's because "you didn't work hard enough".

D.E. Sarcarean says:

You should re-edit this video, but instead of marketing a product, change that to retirement fund like Social Security.

Duncan Dixon says:

I was just 16when someone I trusted came up to me offering me an "opportunity" in a work from home pyramid scheme.

Their reputation went downhill as fast as possible when I contacted all their friends and family telling them what they were doing. Haven't heard from them since then

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