How To Identify A Pyramid Scheme?


Handling a vast ocean of responsibilities has become a hurricane task and thus many people are now opting for work-from-home opportunities. This is when the opportunity of working with an MLM knocks the door.

However, not all opportunities are the same as there are fraudulent pyramid schemes too, which pretend to be an MLM business plan.

But what are pyramid schemes? In pyramid schemes, the revenue is earned while recruiting others in the chain unlike MLM wherein you get paid for the products you sell.

However, in this competitive world, how will you guess which is a genuine MLM programme? Following are some of the key points that you need to understand before investing.

Undertake a thorough research of the company before investing. MLM is so well designed that it promotes products. However, on the other hand, pyramid schemes have no real product.

After undertaking a research, try and understand their compensation plans – binary plan, matrix, etc. Pyramid schemes lure people with lengthy and confusing plans which are hard to understand thus confusing us and tricking us into a wrong world altogether. So, in case of doubt, the best option is to stop thinking about the company then and there!

These schemes promise to give you huge benefits without much effort! This is the sign of a warning because if you don’t give effort, then how are you going to earn? So, it is very necessary to go and meet people who are working with the company.

With this, you will get a clear picture and can verify the revenue plan. The company will narrate you a heart-wrenching story of how a person benefitted from this opportunity, however, you have to get your facts right before coming to any conclusion to avoid getting cheated.

Another important aspect is the payout. If you are getting paid for the product you sell, then definitely it is a genuine MLM programme, but if you are getting paid for recruiting people, then beware you are getting caught in the clutches of a pyramid scheme.

Not only this, keep a close eye while signing the contract. Get thorough information on return policies because if you ignore these aspects then it might land you in a puddle. So, before going for any MLM opportunity, try and keep these points in mind to avoid being tricked by a pyramid scheme!

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