Pyramid Schemes and Multilevel Marketing – Why You Shouldn’t Do It

Has anyone ever attempted to convince you to join a pyramid scheme or multilevel marketing business model? Pyramid schemes are horrible business models to tag onto. You’re often asked to sell products or recruit new people to sell products. As a result, you’ll receive commissions based on their sales.

Statisticians have done extensive studies and discovered that the maximum tolerance levels for these types of business models are 10 levels or less. That means to make a sufficient income for an extended period of time, you need to be in within the top 3-4 levels of the pyramid or you’re just a puppet for the puppet master.

  1. Level 1 – Creators and executives
  2. Level 2 – Friends and Family of those directly connected to level 1
  3. Level 3 – Friends of friends of level 2
  4. Level 4 – Friends of friends of level 3

If you’re not within the confines of these four levels, you’re just making everyone in the upper tiers a lot of money. The rest is just impossible to sustain.

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