Many people wish to make some easy money and for them, the pyramid scheme is the best. How does this scheme work to enable people to make money with little effort then?
Generally in any business or scheme of things you are offered some service or the sale of different kinds of products takes place. But in a pyramid scheme, you only have to pay a fee for joining the program.
Then your work will be to recruit a few other people who will have to pay a fee just like you did and become a member. The number varies for different schemes. Usually, it is anywhere between 3 and 10.
The recruiter who is the top of the pyramid gets this amount and usually leaves the scheme taking a part of the money as his or her profit for making an investment initially. The number of people maybe 6 who have joined the scheme on your recommendation further recruit 6 persons each. These people on joining pay the requisite amount for a fee.
Part of this money is profit for you and the rest goes to pay as profit to the people who started the recruitment process or the people above you in the pyramid. This chain continues and as more and more people join this scheme the pyramid grows and the base is seen to expand.
This is easy money and you do not have to put in much effort except convince people to join the scheme. The more people you can recruit more are the chances for the pyramid to grow and make the scheme a success.
For just a little effort on your part, you can earn a huge amount of money within a short period of time. Ideally, the chain should not break and the recruitment process should continue to give you profit.
However, in practice, this is not found so. After about a few months the people down the line find it difficult to recruit more people and then the whole scheme breaks down. The people who started the scheme and the initial investors can make some easy cash but those who come at the end of the chain or are at the base of the pyramid do lose the money invested. Get to know about Pyramid Scheme through QNET.