Posts Tagged as "Pyramid Scheme"

Pyramid and Ponzi Scheme – What Is the Difference Between Them?

How do pyramid scams work in reality? Pyramid games (pyramid schemes) have many forms and sometimes it is difficult to recognize them. However, they all have one shared feature. They promise customers and investors huge profits based mostly on recruiting another members to the scheme, not based on real investments or real sale of products and services. Some schemes may support the sale of a product, but it is often just using the product to cover the pyramid scheme. There are two indications that the product is being used to cover a pyramid scheme: inventory purchase and low retail sales. Read more >>