pyramid schemes

When a friend of my girlfriend called telling me that she thought of us two for the expansion of the business of a friend/acquittance/partner or whatever of hers, I really wondered what it would be about.

And when he called and spoke with us for over an hour, it was all about a pyramid!

I couldn't believe that these things are still about, and in the US!

Whe are more or less over them in Europe, and they're illegal as far as I know, but I never would expect them to be about in the US!

Any experiences?

(I won't say what company it was for now as it would be free advertising, which I am not likely going to give, unless necessary)

 

They are great if you are at the top and dont get caught.


There are some network marketing programs that have the structure, but have a solid business and product behind them. i.e. pampered chef tupperware, avon. The largest boom in this industry has been termed as "home party businesses" and have become very popular. Any woman in the US will talk you arm off if you mention pampered chef and most likely own some.

 

There is sometimes a fine line between legal multi-level marketing and illegal pyramid schemes. uca, if you're not sure which of these your girlfriend's friend is soliciting, then read the FTC's The Bottom Line About Multilevel Marketing Plans

 

The USA abounds with what are currently being called "multi-level marketing" businesses. Some (by no means all) of them sell a good product.

My objection to the concept of multi-level marketing as it is commonly practiced is this -- it adds too many "middlemen," each needing to make some profit. So when you finally get to the last one "downstream," who actually delivers the product to the consumer, he/she has to charge an outrageously high price to pay all the "upstream" people's profits.