Ponzis and Pyramid Schemes
The House of Cards -Is my MLM company one of those?
If you have been around Network Marketing long enough, you have probably heard the MLM business model as being “Pyramid Selling”, or “one of those “Pyramid Schemes” or (less frequently) a “Ponzi Scheme”. How do you answer something like that? The first thing you need to do is educate yourself on what pyramids and ponzis actually are. If you don’t know what the answer is, then how will you be able to answer assuredly if the question ever does arise?
How the “PONZI” got it’s name.
Charles Ponzi was a career fraudster and scam artist. While this ‘money game’ of his was to become the most famous of his frauds, it was not his first, and ironically, not his last scam. Back in 1920 it involved money in the millions of dollars! That is a lot of money by today’s standards. Just imagine what that amount of money represented in 1920, when you consider that a Ford Model T cost around $300!
Here’s what he did. He sold investors promissory notes paying 50% profit in 45 days. He then took the money that later investors paid him, to pay profit (more…)
Posted in online-business • No Comments »