Mlm and pyramid schemes

Mlm and pyramid schemes - In a pyramid scheme, money from new participants is used to pay recruiting commissions (that may take any form, including the form of securities) to earlier participants just like how, in classic ponzi schemes, money from new investors is used to pay fake "profits" to earlier investors. SEC's Office of Investor Education and Advocacy is issuing this Investor Alert to warn individual investors about pyramid schemes, a type of investment scam that fraudsters often pitch as a legitimate business opportunity in the form of multi-level marketing programs. Sec's office of investor education and advocacy is issuing this investor alert to warn individual investors about pyramid schemes, a type of investment scam that fraudsters often pitch as a legitimate business opportunity in the form of multi-level marketing programs. One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling.

Multilevel Marketing: Last Week Tonight with John Oliver (HBO)

Multilevel marketing companies claim to be legitimate businesses, but some seem awfully…pyramid shaped. John Oliver and ...