The whole point of pyramid scheme businesses is to scam investors of their money (viaInvestopedia).
For instance, there wasBernie Madoff’sponzi scheme that was exposed in 2008.
It’s a pretty simple networking chain.
As new participants are recruited, the pyramid gets wider.
Andrew Lelling, an attorney in Massachusetts, toldCNBC: “There are legitimate multi-level marketing companies.
The difference is that a legitimate company makes its revenue from the actual sale of a product.
A pyramid scheme does not.”
In cases where actual products are presented, pay attention to their marketing strategy.
Pyramid schemes are also known to promise offers that sound way too good to be true, perJob List.
you’re able to work from your house.
Remember: if it sounds too good to be true, it probably is.
