As Seen On OPRAH & 20/20 - TURN $6 into $24600  


A Pyramid Scheme Dissected

Let's look at a hypothetical pyramid scheme, with respect to how it is claimed to work. Suppose the list included in this scheme contains six names. You are to send a dollar to each person listed, remove the top name, move all the other names up one position, and send it on to more people. Let us assume, that you get ten people to join, and each of them gets ten people, and so on.
As the pyramid grows below you, here's what supposedly happens:
The first level below you has ten people. They each send you a dollar, so you collect $10.
The next level has a hundred people. (Each of your first ten gets ten more.) You collect $100.
The next level has a thousand people. You collect $1,000.
The next level has 10,000 people, so you collect $10,000.
The next level has 100,000 people, so you collect $100,000.
The next level has 1,000,000 people, so you collect $1,000,000.
At this point, your name drops off the list, and you collect no more. So, for your initial investment of $6, (one dollar to each of the six people above you), you collect a total of $1,111,110. There are, of course, many variations on this concept.
It's very easy to understand how this kind of scheme should work. It all seems so simple and so obvious.
It is, unfortunately, somewhat more difficult to understand why this kind of scheme does not work, and why it is unethical and dishonest, and, in most cases, very much illegal.

Do not be fooled if the scheme includes some form of “reports” or lists or other pieces of “information” that you are supposedly buying from those above you, and selling to those below you. In nearly every case, these intangible products have no value imputed to them, other than that which can allegedly be gained by copying and reselling them. The purpose of these reports is not to provide valuable information, but to provide a pretext by which one participant in a pyramid scheme collects money from other participants.

So, if you hear about this:

As Seen On OPRAH & 20/20 - TURN $6 into $24600 Earn money using PAYPAL as seen on Oprah & 20/20

Know that it is illegal and DO NOT get involved in it!

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3 comments: to “ As Seen On OPRAH & 20/20 - TURN $6 into $24600

  • 4/7/07  

    I've been down this route...oh dear. I agree with your warning.

  • 7/7/07  

    Oi, achei teu blog pelo google tá bem interessante gostei desse post. Quando der dá uma passada pelo meu blog, é sobre camisetas personalizadas, mostra passo a passo como criar uma camiseta personalizada bem maneira. Se você quiser linkar meu blog no seu eu ficaria agradecido, até mais e sucesso. (If you speak English can see the version in English of the Camiseta Personalizada. If he will be possible add my blog in your blogroll I thankful, bye friend).

  • 20/5/08  

    I think if done honestly and candidly, the letter CAN work.