What is a Pyramid Scheme?
"People are often misinformed about network marketing and get the business model confused with illegal pyramid schemes. To give a short summary, a pyramid scheme is similar to a Ponzi scheme. Pyramid schemes are to the network marketing industry as Ponzi schemes are to the Investment industry. Both look like a legitimate business opportunity and look like they are based on the business model, but they promise high returns with no work involved except for getting other people into the scheme and paying those above them with the money taken in by new investors. Why they always ultimately fail it that as the scheme grows, new investors are required to put more money in. Once the bubble bursts, the scheme falls apart and everyone gets burned." - Coach Jim Wyatt.
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