Represent NZ Residues Policy Information International Sector Performance Sustainability Rural Access to services Research Rural Bulletin Legislation Publications Snapshot of Pyramid Selling Pyramid schemes are among the most widespread scams on the Internet. People should not invest in any scheme that promises unbelievable pro-fits for a small investment and no work. The following table highlights the main differences between them. Multi-level Marketing Pyramid Selling Legal Sells goods or services to public and members Profits from actively selling goods or services.
Participants can make money by selling the goods or services.
They are able to buy the goods from the company for less than they sell them. Participants may also be able to take a commission on sales made by other participants they have recruited. Scheme could collapse if goods or services are not sold. Participants make their money by recruiting others to the scheme Scheme would collapse only when no-one else will join. Products sold do not encourage repeat purchases Often 'gimmick' products sold through the scheme, e.g., certificates, brochures, reports .