Vemma

Hades said:
Never heard of it before. But sounds exactly like a pyramid scheme to me.
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Someone described it recently, but i'm not sure if it was here or not.

The basics being that a pyramid scheme has no product, they take money from person A, in 6 months they take money from person B and give persons A + a bit of B's money back, keeping the rest of B's money. They convince person A to reinvest over and over, in another 6 months they take person C's money to pay off person B, but again convince him to reinvest.

It eventually falls in on itself when not enough new people join, to pay off the existing 'investers'.


MLM has a product to sell.

Sell the product for x price to A B and C, tell them to each sell it onto 3 people for their own profit, telling those 3 to sell it on again.
In reality pretty much all sales are to these people trying to sell the product on, never to people who actually want the product.

That seemed to be the gist of it, because MLM has a product, it's legal. Pyramid schemes don't, they just straight take cash from people on the promise they'll get a high return.
 
Your pyramid scheme discription is a bit muddled and is slightly confused with a ponzi scheme. There are descriptions of both on Wikipedia. Your explanation of how MLM schemes are 'not' pyramid schemes is correct thought.
 
HybridX said:
i didnt even have to finish typing it into google :D

Euphony was another one for telecoms which a few of my friends got involved with because one guy was rocking a beemer and a free holiday per year.

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On a related unrelated note, Mat Zo is a great producer :D
 
If they have to tell you it's not a pyramid scheme, it's a definitely pyramid scheme.

It's like when people say "we're not a sales company" oh really, you're trying to sell me something, could have fooled me.
 
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