axxxr
Joined: Mar 21, 2003
Posts: > 500
From: Londinium
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Another Scam!!.
Remember this!!!
A pyramid scheme is a fraudulent system of making money and may be operated by one person or a group of individuals. For such a scheme to succeed, a steady chain of recruits or participants is required. New participants pay pre-determined amounts of money to recruiters and lists of new members are always needed. The idea is that the individuals at the top of the pyramid will earn a considerable amount of money based on the recruitment of new members.
In a typical pyramid scheme, a recruit is asked to pay a sum of money to join. This person then enlists more recruits to contribute the same sum of money. Simply explained, the recruiters keep all the money received from the new members that join. In order for no one to lose money, the recruitment must go on forever. Sooner or later, all pyramid schemes collapse when the newer recruits fail to attract enough participants to support the persons who joined previously.
Pyramid schemes are promoted by word of mouth, scheduled meetings and various other means of advertising. To give their scheme an air of legitimacy, promoters often claim that their membership includes professionals, such as doctors, lawyers, teachers and accountants. The operators of these schemes are rarely accessible, yet they provide glowing testimonials about the legitimacy and profitability of their business.
Millions of dollars are unlawfully generated by pyramid schemes but the end result is inevitable: Most participants lose the money they invested while the few people at the top who initiated the scheme walk away with significant amounts of money. Any person who participates in these schemes in any capacity may be committing an offence and could be prosecuted. In Canada, pyramid schemes are regulated by the Competition Act and the Criminal Code of Canada.
TIPS
Proceed with caution before deciding whether to participate in any multi-level marketing plan, and watch carefully for the following warning signs:
Avoid or seriously reconsider joining any plan that offers commissions to recruit new distributors.
Beware of "loading" plans that ask you to buy costly inventory.
Beware of claims that you will make money by recruiting new members rather than by sales you make yourself.
Beware of promises about high profits or claims about "miracle" products.
Beware of "shills"- people paid by the operator to make grandiose claims about the success of the plan.
Refuse to make a financial commitment or sign a contract in a high-pressure situation. Take time to review and re-evaluate the plan.
Review all offers with your local Better Business Bureau
[ This Message was edited by: axxxr on 2004-02-26 01:53 ]
[ This Message was edited by: axxxr on 2004-02-26 02:06 ] |
Posted: 2004-02-26 02:31
