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Pyramid Schemes

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Pyramid Schemes

Old 01-02-06, 03:56 AM
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Pyramid Schemes

So I'm flipping through and stop on an infomercial. 2 really hot women with low cut tops are talking about 'the greatest vitamin in the world'. But get this, it's not a penis pill commercial. It took me about 20 seconds to realize that they're selling a classic pyramid scheme.

'You tell 100 people and we give you $10000, and each time one of them tells 20 people, you get another $500.' The mind boggles on how people could fall for it.

Isn't this still illegal? How can someone get away with advertising a pyramid scheme on national tv. They didn't even try to disguise it by calling a it trapezoid of power or anything.

D
Old 01-02-06, 08:10 AM
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I think this is a great way to secure your investments and your financial future. Without a doubt, there's no time to lose. Try it today.

Hello, my name is Charles Ponzi.
Old 01-02-06, 09:24 AM
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Pyramids work great! For the person on the top.

I really admire Ponzi, because he didn't even have to have a "vitamin" to sell, he just sold interest in.... Ponzi! His wasn't really a pyramid, though.
Old 01-02-06, 11:52 AM
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I'd be stupid not to do this!

Paging the SEC...
Old 01-02-06, 12:56 PM
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www.amway.com
Old 01-02-06, 02:58 PM
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Originally Posted by NORML54601
To be "fair" (sc)Amway is more of a business scheme with heavy Ponzi-like implications.
Old 01-02-06, 03:08 PM
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yeah, once in a while Amway actually sells their product!
Old 01-02-06, 03:13 PM
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Hey

I liked that game show
Old 01-02-06, 03:47 PM
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I got a free iPod link if you want it...
Old 01-02-06, 05:41 PM
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Pharoh was great at this.
Old 01-02-06, 06:01 PM
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It's not a pyramid scheme. They're simply telling you to sell to as many people as possible. This is much like any kind of free market selling program with commissions tied to them. It's also the same as being an "Affiliate".

However, this is where the money does not add up:

You'll allegedly get $1000 check for first 20 vitamin purchases from your special website. However, 20 vitamin purchases total only $800. That's pretty generous, I would say.

You pay around $50 for the Don Lapre GVITW kit, but what happens, is your charged a shitload more money to have the website created. Hundreds of dollars. Sometimes thousands. So, where the scam is, is in the website creation and the huge amount of money they charge for it.

It's not illegal to tell people to sell to their friends and relatives and the more people you sell to, the more money you can make. This is not illegal and is not a pyramid scheme. It's a fine line, but not illegal.
Old 01-02-06, 06:19 PM
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There is a difference (albeit a fine line) between MLMs (multi-level marketing) and Pyramid schemes. They work the same way but MLMs actually sell product and people up the line get a percentage of that profit. Sell no product and there is no money.

MLMs also tend to "top out" at a certain level and the wealth doesn't go any higher - say two or three levels above you (whereas Pyramid schemes generally don't - they often send the money all the way to the top).

I suspect that what this is is an MLM - if it were merely a Pyramid scheme, then the MLM guys would be all over it to shut it down (because it competes with them and, at the same time, gives them a bad name).
Old 01-02-06, 06:43 PM
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Originally Posted by naughty jonny
There is a difference (albeit a fine line) between MLMs (multi-level marketing) and Pyramid schemes. They work the same way but MLMs actually sell product and people up the line get a percentage of that profit. Sell no product and there is no money.

MLMs also tend to "top out" at a certain level and the wealth doesn't go any higher - say two or three levels above you (whereas Pyramid schemes generally don't - they often send the money all the way to the top).

I suspect that what this is is an MLM - if it were merely a Pyramid scheme, then the MLM guys would be all over it to shut it down (because it competes with them and, at the same time, gives them a bad name).
MLMs are simply legal pyramid schemes. The "product" is the legal covering they need to stay in business. The whole idea with MLMs is to get other people "under you".... those MLM tier people got their money by luring in other suckers, not by selling the products themselves.

In all these sales pitches, the emphasis is on getting other people involved. Any product sales are only to keep the local bunko squad off your back.
Old 01-02-06, 06:51 PM
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As I said - it's a very fine line. They're in essence Pyramid schemes, but legally there is a distinction (and that's product). That and the fact that the maximum amount of money you can ever get from one direct "line" beneath you is usually capped (allowing for people on lower "levels" to actually have some chance* of making money - something that doesn't happen in pure (illegal) pyramid schemes.

*If, by chance, you're prepared to work 26 hours a day...every day.

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