This is a Pyramid Program

13 replies
Here is an example of a pyramid program:

If you are promoting a $25 offer and that someone can make $100 per day from 4 sales, but the only product being sold is the opportunity to have your own website promoting the same $25 offer - it is a pyramid scheme.

There is nothing being sold other than the right to sell the "offer."

When you think about it, if you sold 4 a day, and everyone you sold to sold 4 day, and their buyers sold 4 a day, etc., in short order you would run out of people on the planet. It is quickly unsustainable and a pyramid.

Here is how many people are in the program selling the "offer" and making $100 per day:

Day 1 - 1 person
Day 2 - 5 people
Day 3 - 20 people
Day 4 - 80 people
Day 5 - 320 people
Day 6 - 1280 people
Day 7 - 5120 people
Day 8 - 20,480
Day 9 - 81,920
Day 10 - 327,680
Day 11 - 1,310,720
Day 12 - 5,242,880
Day 13 - 20,971,520
Day 14 - 83,886,6080

and in the next few days you blow through the world's population - the vast majority of which have no one left to sell the offer to, and thus lose money.

This is what got Frank Kern into trouble with Internet Empires, and he had least had ebooks being sold in addition to the offer to sell your own "Internet Empires" website. The ebooks, though, were not the primary offer and promised way to make money.

This came up because someone on the forum apparently thought a pyramid requires a multi-level structure where money is made from your buyer's sales.

Not so. You need a product to sell that has independent benefit. Do not just sell an offer so someone can sell the same offer.

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#program #pyramid
  • Profile picture of the author giggity
    And therein lies what forms the basis of many of the so called businesses on WarriorForum...

    Very sad indeed.
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    • Profile picture of the author tpw
      Originally Posted by giggity View Post

      And therein lies what forms the basis of many of the so called businesses on WarriorForum...

      Very sad indeed.

      Very sad is using a wide paintbrush to tarnish an entire community.

      I have seen very few offers on the WF that promotes the pyramid structure that Brian has described.
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      • Profile picture of the author seasoned
        Originally Posted by tpw View Post

        Very sad is using a wide paintbrush to tarnish an entire community.

        I have seen very few offers on the WF that promotes the pyramid structure that Brian has described.
        NOT all, but there ARE a lot! I could name several popular ones here but.... Ironically, one is even created by a guy that was shut down for ANOTHER thing, by the FTC, when kern was!

        One other, many here might not see as a ponzi, but I DID over 8 years ago. It really IS exactly like what kindsvater mentioned, even if it is a program.

        Steve
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        • Profile picture of the author lotsofsnow
          Originally Posted by tpw View Post

          Very sad is using a wide paintbrush to tarnish an entire community.

          I have seen very few offers on the WF that promotes the pyramid structure that Brian has described.
          I have not seen a single one and I have bought hundreds of WSOs.

          Originally Posted by seasoned View Post

          NOT all, but there ARE a lot! I could name several popular ones here but.... Ironically, one is even created by a guy that was shut down for ANOTHER thing, by the FTC, when kern was!

          One other, many here might not see as a ponzi, but I DID over 8 years ago. It really IS exactly like what kindsvater mentioned, even if it is a program.

          Steve
          Could you please be specific?

          Pyramid schemes are against the law. So if there are truly pyramid schemes offered feel free to name them.

          If you can't name a single one, please do not use generalities.
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          • Profile picture of the author seasoned
            Originally Posted by hpgoodboy View Post

            I have not seen a single one and I have bought hundreds of WSOs.



            Could you please be specific?

            Pyramid schemes are against the law. So if there are truly pyramid schemes offered feel free to name them.

            If you can't name a single one, please do not use generalities.
            I could name literally DOZENS I have seen here. But it won't do ME any good to name them.

            Steve
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  • Profile picture of the author longblog
    Yes, that structure is a Ponzi scheme. Never invest time or money into that sort of deal. Also stay away from cookie cutter, pre-made websites, because everyone else has the same site, which means none of you guys are going to get ranked for long.
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  • Profile picture of the author JasonBennet
    I agree that Pyramid scheme does not work. I was once involved in this kind of program but it does not get me any results at all. I personally feel that this is a scam where you will only make money when people join the program too and there is no real products being offered. I will avoid this kind of program like a plague.
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  • Profile picture of the author seasoned
    Well said

    Steve
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  • Profile picture of the author longblog
    From what I've seen here on the warrior forum, most of the products do offer a great deal of quality information. The biggest factor in the "programs not working for people" is that the people aren't willing to work for themselves. The programs don't do the work, they are just information. Any WSO claiming to do the work for you is most likely baloney, and shame on you for falling for it.

    The most nefarious structure I've seen here are the free or very cheap products which are just aimed at getting you into their pipeline of never ending up-sales, but those are quite rare, as they take a fair bit of knowledge, money, and ability to set up.

    I have yet to see an outright Ponzi scheme on the Warrior forum and challenge you to name one. Otherwise your post is just pointless spam.
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    • Profile picture of the author kindsvater
      longblog,

      My post was because one was being promoted on the forum But, as I said, the member did not realize the problem because they thought multi-levels were required.

      The moderators were alerted to the issue but the user voluntarily, and responsibly, quickly removed the promotion.

      You, however, are not entitled to "challenge" anyone by demanding identification of the program and indirectly identification of the member.

      This is an educational thread about what constitutes a pyramid and that multi-levels are not required.

      .
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  • Profile picture of the author WillR
    What you have said is correct.

    but the only product being sold is the opportunity to have your own website promoting the same $25 offer - it is a pyramid scheme.
    That's exactly what a pyramid scheme is. A pyramid scheme is easily identifiable by the fact that if the whole of the population were a part of it (ie: market saturation) the last members would be out of pocket because there is no one else to on-sell the opportunity to. Therefore they receive no value for their money at all.

    The most important part there is the "only product being sold is the opportunity". If people are receiving a product or service that is inline with the money they are spending and they will get real value out of that product/service regardless if they on-sell the product, then it's not a pyramid scheme.

    The key point here is the value people are receiving for the money. If the opportunity to promote is the only value they are receiving, then it belongs in Egypt with the other ones.

    But there are plenty of programs out there that people quickly label as pyramid schemes but they are not because the people joining are getting something worth the value of the money they spent, irrespective of the opportunity to promote.
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  • Profile picture of the author sal64
    I once had an Egyptian neighbor who tried to sell me into a Pyramid Time Share program... does this count?

    Sal

    DANG! 3 minutes of my life I'll never get back...
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  • Profile picture of the author Randall Magwood
    That's why i can't do pyramid programs. My friend insists that his business opportunity is better than mines, yet he has to go and pitch people FACE TO FACE in order to get them to sign up. I say my marketing strategies are better. Educate yourself in these things like pyramid schemes.
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