A pyramid scheme has no product, and you are paid for every recruit you bring in. You have about a 4% chance of getting your money back.
An MLM has token products to defeat the pyramid scheme laws, and you do not get paid for bringing in recruits. You have a 0.004% chance of getting your money back.
When they made the laws defining pyramid schemes, they assumed that nobody would be stupid enough to recruit people for nothing, and pay the company to it also, but what the heck, MLMs still prosper.
As for product brokerage companies? I am not sure what you mean. If they want you to pay them for the right to sell their products, I think you should get really drunk first so you will at least have a good excuse for doing something so stupid.
February 28th, 2009 at 8:07 am
A pyramid scheme has no product, and you are paid for every recruit you bring in. You have about a 4% chance of getting your money back.
An MLM has token products to defeat the pyramid scheme laws, and you do not get paid for bringing in recruits. You have a 0.004% chance of getting your money back.
When they made the laws defining pyramid schemes, they assumed that nobody would be stupid enough to recruit people for nothing, and pay the company to it also, but what the heck, MLMs still prosper.
As for product brokerage companies? I am not sure what you mean. If they want you to pay them for the right to sell their products, I think you should get really drunk first so you will at least have a good excuse for doing something so stupid.