pyramid-schemes-a-trap-you-should-never-fall-into

Pyramid schemes; A trap you should never fall into

Since childhood, we are taught that anything with a weak base or foundation eventually falls apart. Whether it be buildings, ideas, or even businesses, this fact remains true for everything. As the name suggests, pyramid schemes are structured in the form of pyramids. Additionally, the pyramid is divided into various sub-parts as you can see in the given picture. Here, the topmost part houses the founder and the rest are all recruits.

These recruits’ job is to attract more recruits and train them to do the same. The more the recruits, the larger the pyramid gets. Now we reach the bottom of the pyramid, which houses the recruits that are yet to be trained. These people are usually new to the space and some still have to gain interest in what they are supposed to do.

Wikipedia describes pyramid schemes as:

“A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.”

These new recruits are like fleas stuck in a spiderweb. The opportunity of joining a pyramid scheme is presented to them in the most beautifully wrapped package. It takes nothing but words and sheer motivation to attract these vulnerable people. If you haven’t guessed already, these pyramid schemes take their recruits to a downward spiral. They slowly marinate people with words such as “broke is just a mindset” and “nothing is impossible”. This consumes those who are already going through tough times and struggling to make ends meet, providing them with hope and promising financial freedom. And you know what happens to the fleas that don’t find a way out!

Luring the fly-in

When you’re taken to one of their seminars, your mind will be captured in an instant. The crowd will engulf you with positive energy and excitement. The speaker will immediately start telling you how the scheme has changed their life and how it will change yours too. These speakers are no other than recruits themselves, but these are the ones that are a level above in the pyramid. As mentioned, the sole job of these recruits is to recruit more people and encourage those people to recruit additional members. Now at this point, you may be asking how these schemes earn revenue? Well, most of them are into cosmetics, fashion and much more. And who sells the products? The ones who are trying to recruit you and they earn commissions on the products they sell.

Once you sign up for the beginner’s kit, you are welcomed to the pyramid and are allowed to sell whatever you purchased at a higher price. The people you recruit play a huge role, as their sales provide you with commissions and additional benefits. You even have to listen to the countless gurus that tell you how much money they made from the scheme to lure you in if the other tactics don’t work. The more time you spend on the scheme, the more brainwashed you get by the back-to-back seminars that you have to attend and the books they make you read.

The downfall

What if you fail to recruit members and sell your product? They will simply tell you to work harder in order to achieve your dreams. However, if you fail to attract members, then you will be blamed for not putting in enough time and effort. Furthermore, you will be encouraged to let your own family members and friends into the scheme. Along with you, you will slowly invite your loved ones to get stuck in this massive spider web. And when none of you end up making a profit, you will eventually quit the scheme, having little to no one to support you. Whatever you had invested into that scheme would be long lost and it would take months, if not years to build up your relationships and accumulate the same wealth you had before. But you’re not alone in this because with you there will be thousands leaving the scheme, and when the bottom part of the pyramid breaks apart, the top starts breaking away too. Eventually, the pyramid scheme comes crashing down, leaving only the founder who has profited the most from all of this. He was no one but the spider all along!

Conclusion

Regardless of the situation you are into, do not even think of joining a pyramid scheme. Anything that sounds too good to be true, overoptimistic or involves recruiting members would most probably be a pyramid scheme. Watch out so that you can not only protect yourself, but also the ones you love.

FAQ:

1.       What is the job of recruits in a pyramid scheme?

Ans) The recruits’ job is to attract more recruits and train them to do the same.

2.       What if you fail to recruit members?

Ans) They will simply tell you to work harder in order to achieve your dreams. However, if you fail to attract members, then you will be blamed for not putting in enough time and effort. Furthermore, you will be encouraged to let your own family members and friends into the scheme.

3.       Describe the environment created in the seminars.

Ans) When you’re taken to one of their seminars, your mind will be captured in an instant. The crowd will engulf you with positive energy and excitement. The speaker will immediately start telling you how the scheme has changed their life and how it will change yours too. These speakers are no other than recruits themselves, but these are the ones that are a level above in the pyramid.

4.       What happens after you buy the starter kit?

Ans) Once you sign up for the beginner’s kit, you are welcomed to the pyramid and are allowed to sell whatever you purchased at a higher price. The people you recruit play a huge role, as their sales provide you with commissions and additional benefits. You even have to listen to the countless gurus that tell you how much money they made from the scheme to lure you in if the other tactics don’t work. The more time you spend on the scheme, the more brainwashed you get by the back-to-back seminars that you have to attend and the books they make.

Leave a Comment