The pyramid (or as the Ponzi pyramid) is a form of fraud in which the benefit is not really activity as announced sale, but especially the recruitment of new members. The term “pyramid” identifies the fact that only the initiators of the system (at the Summit) benefit in depriving the members of base.
This system frequently hide behind the words of “multi-level marketing” or “multi-level marketing” (in English multi-level marketing or “MLM”), although fundamental differences exist, allowing some countries to ban then the pyramid that the multi-level sales is permitted (especially France with the status of VDI3).
The pyramid system can be detected by a disproportion between the actual value of a property for sale (“package”) or opacity that surrounds this package, and the money provided by the system of referrals.
Internet has its own versions of pyramid systems, including the famous “MMF” (Make Money Fast) spam.
The geometric progression of an impossible sale pyramid classic: to continue to work, it requires in effect to a number of people more than the world’s population (from level 14, knowing that the tier 1 includes 1 person and in the case where each person recruited 6 others)
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