What Is Pyramid Selling?

A pyramid scheme targeting Pacific Islanders has been doing the rounds in South Auckland. A couple of men and women who are also Tongan have been encouraging the schemes that has seen people part with amounts ranging from $300-$1500. The scheme is some sort of gifting program where every person sends a present to those higher up in the series. Promises have been made to could be participants regarding the large quantities of money they can make in the scheme but this depends on them recruiting other people to the scheme and forcing them to invest money into it. Then they must do likewise in order to generate money Air Travel and so on. Somewhere during this chain the money route stops as fewer people become involved while others fall out. The scheme is based on a sizable number to join so as to make it operate. In the end the one person who makes any cash from it all would be the originator of the scheme. Some men and women who had been a participant in 1 plot had left to make their own and have persuaded others to join them “Come over to my own one, this is a great deal better.” So what are the tell-tale signs of a pyramid scheme? The one question that ought to be requested of those promoting the strategy is,”What products are being marketed?” Any marketing strategy which requires its members to recruit others so as to generate money with no goods being sold is almost definitely a pyramid scheme which is prohibited in New Zealand and other countries. Legitimate companies such as Amway, Melaleuca, Herbalife, Kleeneze (UK) all promote goods as do a heap of other businesses which demand recruiting others but even so, the tactics employed by these businesses may be downright pushy people that are not suited to this type of advertising get talked into joining the scheme with no hope of making any money. The most evident one is to take financial information and this doesn’t need to cost a arm and a leg. Get free legal counsel at the citizens advice bureau. You might even go to your own bank and just seek their advice. Obviously the men and women who are promoting these schemes don’t need you to do this but it’s your money they’re after and they don’t want you to expose their scheme. It is those who can least afford it who are taken in by these schemes; the thought of a financially free life with minimal if any effort. Promoters of these approaches are selling a fantasy; who says,”Dreams are free?” The bottom line to all this is that these strategies are illegal in most countries so if you could get into trouble if you’re a participant. TO SUMMARISE Certain types of people are attracted by pyramid schemes; the distressed, the greedy, the ignorant, along with the financially illiterate. Thus it is important to get financial education and to take advice from well informed people. My blog contains lots of information of a financial nature.

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