Thursday, June 20, 2013

How Amway type schemes work?

They tell you that you'll get rich if you sell their product. They charge you a fee to become an 'authorized dealer'. Most people are bad at selling things and can only sell to their immediate friends and family, who will buy because they feel sorry for you.
The catch is that they person who brought you into Amway gets a cut of all the money you bring in (and the person that brought them in gets a cut and so on). The only way to really make money is to bring in more people under you to sell stuff.
The problem, as with any pyramid scheme, is that there's only so many people you can sucker into joining & the people at the top have brought in so many suckers they just need to sit back and let the money roll in while you, at the bottom, are struggling to find enough people to join to even make your initial investment back.

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