Modern day pyramid schemes - Name and Shame.
Pyramid schemes and Multi-level Marketing (MLM) offerings have been around since business began. But with the advent of the internet and Remote Working, they are seemingly having a resurgence. I've watched several people around me sign up to become travel agents recently via a number of schemes like InteleTravel and Travelution offerings.
Once the curtain is pulled back, your friend on Facebook is not selling cheap holidays; they are trying to recruit you to their next tier down to earn from you and your work in recruiting more people.
Travel is not the only industry though that utilises these methods to grow, Companies like Amway, Herbalife and Natura & Co all use similar method when stripped down to sell health and wellness-related products.
Looking at the figures from these companies, they are hugely successful, but sadly for the single mother who is looking to supplement their income, they do not seem to deliver the riches and work/life balance promised.
Do you have any stories to tell, good or bad? It's an interesting business model that obviously works on some levels, but what should people look out for and what should they be wary of?
We've recently done a job for a Herbalife rep and he's doing very well from it, looking to expand in the United Arab Emirates. Whether it is a pyramid scheme still remains a subject of debate and legal scrutiny, but it is not currently classified as one by regulatory bodies. They did pay the US Federal Trade Commission a $200m fine back in the day, but that's no admission 😉