November 24, 2008
Do pyramid and MLM schemes increase in popularity as unemployment increases?
Sman asked:
I am currently in Michigan (one of the highest states in unemployment), and I am seeing these things everywhere. The TEAM is one of the bigger ones, they are all scams in my opinion, but I really wonder what the relationship is.
I am currently in Michigan (one of the highest states in unemployment), and I am seeing these things everywhere. The TEAM is one of the bigger ones, they are all scams in my opinion, but I really wonder what the relationship is.
Filed under Other - Business & Finance by Peter
Comments on Do pyramid and MLM schemes increase in popularity as unemployment increases? »
yes, they increase with unemployment.
There could be a corelation, however these kinds of Ponzi schemes have been around for a LONG while. There is a major difference, though, between a MLM and a pyramid. MLM’s are legal business ventures that require a substantial investment on the part of the individual seeking to either build a profitable business or create a 2nd revenue stream.
A pyramid is an illegal plan that also requires an investment but unlike a MLM that allows tax deductions, a pyramid can land you in jail.
In my view they are more likely to increase in popularity when people have disposable income available to spend on get rich quick schemes, than when people do not have enough money to live on.
Yes especially when they claim you can make $2,000- 10,000 per week. For some reason people fall for it and get scammed at the end.