How do I avoid a Pyramid Scam?

"A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without any product or service being delivered. Pyramid schemes are a form of fraud.<sup>[1]" - Wikipedia




"All I need now is $1000 and then you too can collect $1000 from other naive people just like you!" 

 It's a shame that this actually happens. Pyramid Scams are very real and are rather common. But they should not be confused with a Multi-Level Marketing Company. BUT WHAT'S THE DIFFERENCE? 


Pyramid Scams</sup>

• ^{Have no real product or service}
• ^{Have no real compensation plan}
• ^{Are very hush hush, "This is a big secret!"}
• ^{Promise huge payouts very quickly}
• ^{Have no Business History}   

^{Muti-Level Marketing Company}

• ^{Offer a product or service you can sell}
• ^{Have a Real (simple) Compensation plan}
• ^{Have a business history (openly traded)}
• ^{Offer training and realistic payouts}

^{How do I avoid the scams}

• 1) Find — and study — the company’s track record
• 2) Learn about the product
• 3) Ask questions
• 4) Understand any restrictions
• 5) Talk to other distributors (beware shills)
• 6) Consider using a friend or adviser as a neutral sounding board or for a gut check
• 7) Take your time
• 8) Think about whether this plan suits your talents and goals

^{AND ABOVE ALL!!! You've got to like what your selling. IF you don't, than why are you selling it?}
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