Recruitment based pyramid schemes come in different forms but the bottom line is that participants are paid to recruit other participants.
The most common feature of recruitment focused scam is the requirement to make only a one-time membership fee payment to earn unlimited commissions month after month.
Millions of people in Nigeria, Africa and worldwide just love this concept.
It's because most people want easy money!
The recruitment based pyramid scheme model simply says, "pay our one-time membership fee and recruit other people willing to pay our membership fee month after month and you stand a chance to earn as much as $100,000 U.S. dollars every month". Then they follow with the statement, "This one-time payment can change your life forever!"
"WOW! That's pretty easy! I can do that!" many people exclaim.
So, they jump in excitedly and invite all their family and friends to jump in and take advantage of this so-called "once in a lifetime opportunity".
Pyramid scheme promoters are very smart people. They don't just tell people to bring their hard earned money without what they call "proof" that their system work.
The first step in getting people all excited and ready to part with their money is to create a system that looks believable.
They start with what they call founding members who receive special perks. Then they showcase pictures of members who have won gifts like laptops, ipads, TV sets, refrigerators and more. Then they showcase people who have received car awards from the company within 6 months of joining the company.
The superstars step forward and say, "if I can do it, so can you!"
All of this fires the determination of new opportunity seekers who want to succeed at all cost even if they have to lie to new recruits to get them to part with their hard earned money
Are you looking for a business opportunity to join?
Have you been approached by someone to join the company he promotes?
If yes, don't allow yourself be take for a rough ride. Don't be fooled.
Ask questions and more questions to be sure you're not getting involved with a recruitment based pyramid scheme or any other type of pyramid scheme for that matter.
Remember . . . some people will make money and win fabulous gifts / prices from any given pyramid scheme and some people will lose money.
Therefore, the argument that hundreds of people are making money from the program does not qualify it as a legitimate network marketing program.
I have said you should ask smart questions to be sure you're not getting involved with a recruitment based pyramid scheme.
One of the very first question you should ask before getting involved with any income opportunity is: "What product or service is the company selling?"
If the company is not selling any product or service but it is paying out commission, that is a red flag.
Next, ask this follow up question: "What do I get when I pay the membership fee?"
If the membership fee is simply for joining the program and you get nothing that is worth the amount you have paid to join, it's a sign that the program is a pyramid scam.
Third question: What do participants do to earn those fabulous commissions graciously explained in the company's compensation plan?
If all you have to do is recruit new participants who pay the membership fee, then the company is actually paying participants commission from the money paid by new recruits into the program.
Remember the golden rule of business: If nothing of value is being sold in exchange for money, then it is not a business. It is a money game, a ponzi scheme.
What should you do if you're presented with this kind of income opportunity?
Simple. It is illegal. And you could go to jail if you're a part of that kind of program and you're found guilty by a court of law.
Be smart. Get involved with genuine business opportunities and enjoy your income with peace of mind.