Whether you are looking for a good investment opportunity or just another way to bring in some extra money, you should be aware that pyramid schemes are not the way to go. The only way of advancing in a pyramid is to recruit others who also pay money to join. Often, the new recruits are a participant's friends and family. If enough new participants continue to join, the pyramid continues to grow. In order for everyone in a pyramid scheme to profit, however, there must be a never-ending supply of new participants.
Some pyramid promoters try to make their schemes look like multi-level marketing plans.
Multi-level marketing can be a lawful and legitimate business method using a network of independent distributors to sell products. State Attorneys General have taken several steps to ensure that pyramid schemes don t crumble on their citizens. Nevada Attorney General Frankie Sue Del Papa has obtained a Cease and Desist Order against 5 Star Autoclub. These consumers were then required to recruit others in order to receive commissions. Avoid plans that offer commissions based solely on recruiting new members.