> Weegs wrote: > friend is trying to get me to DO THE DEAL with him. > not sold on it yet, but explain, why is a pyramid scheme > such a bad thing? >
Because someone gets left holding the bag - or really lots of people do. Basically you're promising someone they'll get money if they get you money. The way they get it, you explain, is to get it from others. Put another way, you're providing no goods or service for your customer's money and that's fraud. The way "multi-level marketing" gets around this is by attaching a good or service to the promise. For example, you'll pay me $500 to get a starter kit of supplements that cost $50. That means I get $450 profit and you're $500 in the hole. Now let's say you sell all of the supplements for $200. You're still $300 in the hole. So how do you make that up? You convince someone else to give you $500 to "get started". Now THAT PERSON is $500 in the hole and you're $150 ahead. So what's your next move? To go to all the hassle of selling supplements door-to-door for $150 profit or convince someone to "get started" at a profit of $450? On it goes. Thus the underlying source of income to you is not the product, but getting people to give you a lot of money for a little. So that's what your friend is trying to do: give him money in exchange for allowing you to ask other people to give you money. It's a scam and it's legal fraud. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:255848 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
