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Pyramid selling
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vendita piramidale, schema di vendita piramidale
a form of multi-level marketing where profit is derived primarily from recruiting others into the scheme, rather than from legitimate product sales
What is "pyramid selling"?
Pyramid selling is a business model where participants earn money primarily by recruiting others into the scheme rather than selling products or services. New recruits often pay a fee to join, and a portion of this fee goes to the person who recruited them, forming a structure resembling a pyramid. This model is usually unsustainable because it relies on constantly adding more participants, and those at the bottom often lose their investment.
Example
Unlike legitimate multi-level marketing businesses, pyramid selling primarily relies on continuous recruitment to generate income for its members.
Pyramid selling scams can be identified by their focus on recruitment incentives and the lack of a genuine product or service being offered.
Pyramid selling schemes recruit participants with the promise of earning money by enrolling others into the scheme, rather than selling actual products or services.
Esempio
Unlike legitimate multi-level marketing businesses, pyramid selling primarily relies on continuous recruitment to generate income for its members.
Pyramid selling scams can be identified by their focus on recruitment incentives and the lack of a genuine product or service being offered.
Pyramid selling schemes recruit participants with the promise of earning money by enrolling others into the scheme, rather than selling actual products or services.
Participants in pyramid selling schemes often lose money because the structure collapses when recruitment slows down, leaving those at the bottom with no returns.
Authorities warn consumers to be cautious of pyramid selling programs, as they are often illegal and unsustainable.
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