The Truth About Pyramid Schemes
Entrepreneurship has become fashionable. A lot of people want to become entrepreneurs and are in need of ideas and resources which they can use to create the business of their dreams. This tendency has been exploited by many firms in the past century. A new type of scam called the pyramid schemes has come into existence. The perpetrators of these scams mostly play on the minds of gullible people who have high aspirations but are somehow stuck living menial lives.
These so called business opportunities are nothing more than confidence tricks designed to entice unwary investors into parting with their hard earned money. The problem with pyramid schemes is that they are not outright frauds and therefore cannot be pinned down by the law. Every now and then, some company pops up offering the allure of quick money and swindling millions in the process. In this article, we will have a closer look at pyramid schemes.
Tell Tale Signs of Pyramid Schemes
How Pyramid Schemes Recruit People
The Truth about Pyramid Schemes
All in all, pyramid schemes are a swindle. They transfer wealth from people at the bottom to the people at the top. These schemes work out badly for the vast majority of people and only work out well for a handful. Also, there are severe costs associated with the loss of respect. Once a few people in your network lose money to these pyramid schemes, word quickly spreads causing a grave loss in reputation.

Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.