How To Spot A Pyramid Scheme

Beware of friends who look you into selling get-rich-quick products

immediately.
Take your time when making an investment into any business that appears to have easy entry. Appeals such as “get in on the ground level” and opportunity will be lost “if you don’t pay now” are common ruses to distract you.

Conduct your own background investigation.
Contact numbers should be clearly labeled in the company literature. Call your local Better Business Bureau and the DSA (202-293-5760 or www.dsa.org) for information on legitimate companies. The DSA distributes free brochures on pyramid schemes and business opportunity frauds. For information on Internet-based pyramid schemes, contact the National Fraud Information Center (800-876-7060 or www.fraud.org). If you become aware of an illegal pyramid scheme, contact the FCC’s Consumer Response Center at 800-554-5706 or online at www.ftc.gov.
HOW A PYRAMID SCHEME WORKS
IF ONE PERSON RECRUITS SIX AGENTS, EACH OF WHOM, IN TURN, RECRUITS SIX OTHERS, HERE’S HOW THE NUMBERS WOULD MULTIPLY IN THEORY. MOST PEOPLE, HOWEVER, FAIL TO RECRUIT NEW MEMBERS AND THE PYRAMID SOON COLLAPSES. .
LEVEL 1 1
LEVEL 2 6
LEVEL 3 216
LEVEL 4 1,296
LEVEL 5 7,776
LEVEL 6 46,656
LEVEL 7 279,936
LEVEL 8 1,679,616
LEVEL 9 10,077,696
LEVEL 10 60,466,176
LEVEL 11 362,797,056
(HIGHER THAN THE TOTAL U.S. POPULATION)

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