The Consequences of Pyramid Schemes Pyramid schemes exploit people with limited means and limited knowledge of business. The odds are against you. You are not likely to be one of the few who reach the top before the pyramid collapses. If you participate in a pyramid scheme, you also run a significant risk that the pyramid operation will be closed down and you may be subject to fines and possible arrest. In a pyramid scheme, merchandise or service is largely ignored, and little or no mention is made of a market for the products.
Pyramids concentrate mainly on quick profits to be made by selling the right to recruit others.
You must then attempt to recoup your investment in products by recruiting from the ever-decreasing number of potential investors in a given area. Whether the company will buy back unsold inventory. Find out the company's policies regarding buying back and restocking unsold inventory. You could be saddled with unsold inventory if they are not willing to repurchase it. If they are, get their policy in writing.