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Kicked out difficult child
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<blockquote data-quote="trinityroyal" data-source="post: 165155" data-attributes="member: 3907"><p>HWGA, that sounds like one of those pyramid sales schemes, or a Ponzi scheme as you suggested (pyramid and Ponzi might be the same thing with different labels)</p><p></p><p>From what I understand, you start out at the bottom of the pyramid, doing most of the work for very little return. Everyone above you on the pyramid gets a cut of the overall revenue, and your share is whatever is left over.</p><p></p><p>For example:</p><p>Imagine it's a 5-level pyramid </p><p>The price of one unit of your product is $100</p><p></p><p>So...</p><p>The dude at the top of the pyramid gets $50</p><p>The next person down gets $25</p><p>The next person gets $12.50</p><p>The next person gets $7.50</p><p>The person at the bottom gets $5.00 per unit sold.</p><p></p><p>The only person doing the selling is the one at the bottom. That person gets the smallest cut and does the most work.</p><p></p><p>The only way to make money is to recruit other people to work for you. Then you get a cut of whatever they sell. If you are the 2nd layer from the bottom and you recruit 10 people to work for you, then you get 10x7.50 for each sale.</p><p></p><p>The "earn thousands of dollars a month" quotes are usually based on the earnings of those at the pointy end of the pyramid. Some people can earn $10,000 or $20,000 per month, but only the ones in the top 2 layers.</p><p></p><p>If I recall correctly, these types of companies are on the fringes of the law, if not downright illegal.</p></blockquote><p></p>
[QUOTE="trinityroyal, post: 165155, member: 3907"] HWGA, that sounds like one of those pyramid sales schemes, or a Ponzi scheme as you suggested (pyramid and Ponzi might be the same thing with different labels) From what I understand, you start out at the bottom of the pyramid, doing most of the work for very little return. Everyone above you on the pyramid gets a cut of the overall revenue, and your share is whatever is left over. For example: Imagine it's a 5-level pyramid The price of one unit of your product is $100 So... The dude at the top of the pyramid gets $50 The next person down gets $25 The next person gets $12.50 The next person gets $7.50 The person at the bottom gets $5.00 per unit sold. The only person doing the selling is the one at the bottom. That person gets the smallest cut and does the most work. The only way to make money is to recruit other people to work for you. Then you get a cut of whatever they sell. If you are the 2nd layer from the bottom and you recruit 10 people to work for you, then you get 10x7.50 for each sale. The "earn thousands of dollars a month" quotes are usually based on the earnings of those at the pointy end of the pyramid. Some people can earn $10,000 or $20,000 per month, but only the ones in the top 2 layers. If I recall correctly, these types of companies are on the fringes of the law, if not downright illegal. [/QUOTE]
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