The warning signs of a pyramid scheme
Posted: Tue Jan 21, 2025 3:58 am
Concluding that affiliate marketing is not a pyramid scheme doesn't mean they don't exist. It's crucial to stay vigilant.
According to the Federal Trade Commission, the 4 most important signs of a pyramid scheme are:
1 Sign: Promoters make exaggerated audit directors auditors email list claims about your potential earnings. These claims are misleading and untrue.
2 Sign: Promoters suggest that recruiting new distributors for your network is the main way to earn money. In a legitimate MLM program, you should be able to profit just by selling the product.
3 Sign: Promoters employ emotional manipulation or high-pressure tactics, warning you that you'll miss out if you don't act immediately and discouraging you from investigating the company. Avoid any company that pressures you to join.
4 Sign: Distributors purchase more products than they need or can sell simply to remain active or qualify for bonuses or rewards. If you notice this, don't invest your money because you won't get it back.
According to the Federal Trade Commission, the 4 most important signs of a pyramid scheme are:
1 Sign: Promoters make exaggerated audit directors auditors email list claims about your potential earnings. These claims are misleading and untrue.
2 Sign: Promoters suggest that recruiting new distributors for your network is the main way to earn money. In a legitimate MLM program, you should be able to profit just by selling the product.
3 Sign: Promoters employ emotional manipulation or high-pressure tactics, warning you that you'll miss out if you don't act immediately and discouraging you from investigating the company. Avoid any company that pressures you to join.
4 Sign: Distributors purchase more products than they need or can sell simply to remain active or qualify for bonuses or rewards. If you notice this, don't invest your money because you won't get it back.