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What Makes A Pyramid SchemeWhat Makes A Pyramid Scheme
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Strictly speaking, a pyramid scheme is a program where initial entrants pay a large membership fee, and then hope to make their money back by commissions derived from signing up later members. Eventually the program reaches saturation, (a concept that pyramid marketers will vigorously deny), and the last members have no more willing recipients to sell memberships to in order to get their money back. Pyramid schemes also usually involve the payment on sales volume of refered new members, and the number of new members they refer, and the number of new members refered by the next group, in layers through as many as 7 levels, and sometimes more. By building such a pyramid shaped organization, the new member is shown how they can make lots of money from people they've never met.
How Companies Try To Eliminate Liability For Operating Pyramid Schemes ...
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