While looking through many search engines, you stumble across a company that is hiring “entry-level positions” as direct marketers or consultants. However, you scan for information and find very little. What you do find is very vague and promises an easy path to top positions. You start to wonder if this company is legit. Have you just stumbled across a pyramid scheme?
First off what is a pyramid scheme? A pyramid scheme is a seemingly credible and successful business that involves an individual to pay “X” amount of money and then recruits new hires that will also pay “X” amount of money. The individual who brought them to the company will get a cut off the money the new hires paid in, and the cycle continues. These schemes will not last forever because there are only so many people you can recruit before there is no one left or someone exposes the scheme. In the end, only those at the very top will gain riches, and those below only receive wasted time and money loss.
To avoid such a thing to happen to you really take time to do research on a company. Ehow.com has an article that will help you to distinguish characteristics of pyramid schemes and companies that use multi-level marketing.
Multi-level marketing companies sound just like a pyramid scheme but has a couple of differences. First, unlike a pyramid scheme that is solely dependent on you recruiting new hires, a multi-level marketing (MLM) company has an individual sell products or services that are actually useful to the consumer who buys them. The individual can recruit new hires and gain commission off their sales or just stick to selling their products.
Here in the United States, MLM companies are legal whereas pyramid schemes are illegal. Just note that any job that offers a person high success rates fast is probably not a company that is reliable in the long-run.
Have you had a pyramid scheme experience? Share it here and save others from making the same mistake!
