Sustainability of pyramid scheme

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  • Thread starter Ken Somerville
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    Pyramid
In summary, the conversation discusses a new affiliate program called Pyramid that operates on a 2x2 forced rotator matrix with automatic re-entry at each level. The program has 7 positions on the board, with only 4 available for a one-time buy-in of \$300.00 each. As the #1 (apex) position leaves the board, they are re-entered back onto the Level 1 board for \$300.00, taken from their profits earned. The process repeats infinitely, with the potential for the program to speed up from daily to hourly, by minutes, and by seconds. The main question raised is whether this program is sustainable and at what point it may falter. The program follows a pay position of
  • #1
Ken Somerville
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I’m about to get involved with a new affiliate program,
before I market this I want to know that it is going to work.

Pyramid (yes, it is legal; there is a product,
merchant accounts used, taxes will have to be paid).

2x2 Forced Rotator Matrix with an Automatic Re-Entry at each level.

7 Positions on Board (only four available to be filled at a one time buy-in of \$300.00 ea).

As the #1 (apex) position leaves that board, they will be re-entered back onto Level 1 board for \$300.00 (taken out of the profits earned), it now looks for its’ sponsor, realigns itself again on its’ sponsor’s board, and continues to repeat the process over and over again to infinity.

As the process speeds up, and moves from daily to hourly, by minutes, by seconds, etc. Is this sustainable? At what point would this falter, or does it?

O Pay position \$1200.00-\$300. (auto re-buy done by computer).
O O Middle positions
O O O O Bottom positions to fill at \$300.00 ea

Thanks for your help. Ken
 
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  • #2
Re: Hello! I need help with a mathematical query. Please and Thank You

Hello and welcome to MHB, Ken. :D

I have moved your topic to our Business Mathematics sub-forum, as it seems to be a better fit than Analysis.

Typically, responses are posted within a topic, not emailed, and so I have removed your email address from public view just so that it does not potentially fall into the wrong hands.
 

FAQ: Sustainability of pyramid scheme

What is a pyramid scheme?

A pyramid scheme is a fraudulent business model where individuals make money by recruiting others to join the scheme, rather than through legitimate sales of products or services. The structure of the scheme resembles a pyramid, with a few people at the top who receive the majority of the profits and a larger group of people at the bottom who will likely never make any money.

How does a pyramid scheme differ from a legitimate multi-level marketing (MLM) company?

MLM companies sell products or services and allow individuals to earn money through both sales and recruiting others to join the company. In contrast, pyramid schemes focus solely on recruiting and do not have a legitimate product or service to sell.

Why are pyramid schemes unsustainable?

Pyramid schemes rely on a constant influx of new members to sustain the profits of those at the top of the pyramid. Eventually, the scheme will collapse when there are not enough new members to sustain the profits of those at the top. This means that the majority of people who join a pyramid scheme will lose money.

How can someone identify a pyramid scheme?

Some red flags of a pyramid scheme include promises of large, quick profits with little effort, a focus on recruiting rather than selling products or services, and pressure to invest money or recruit others. It is important to do thorough research and ask questions before joining any business opportunity.

What are the consequences of participating in a pyramid scheme?

Participating in a pyramid scheme is illegal and can result in serious consequences, including fines, imprisonment, and damage to one's personal and professional reputation. Additionally, individuals who join a pyramid scheme are likely to lose money, as the scheme is unsustainable and designed to benefit only a few at the top.

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