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  1. #1
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    Are pyramid programs legal if no one gets scammed?

    If everyone agrees is a pyramid program illegal if no one gets scammed? If it's family, friends, and coworkers and all the rules are followed, and no money is stolen or cyphoned, then what is actually wrong with it? To me it is creative MLM. I think it is illegal because it's rarely taxed and the government doen't get their cut.
    Last edited by Administrator; 03-31-2014 at 08:42 PM.

  2. #2
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    Re: Are pyramid schemes legal if everyone agrees

    Quote Originally Posted by SCAMS View Post
    If everyone agrees is a pyramid scheme illegal if no one gets ripped off?
    It's not a pyramid scheme if nobody gets ripped off

    If it's family, friends, and coworkers and all the rules are followed, and no money is stolen or cyphoned, then what is actually wrong with it?
    Pretty much by definition, if it's a pyramid scheme someone has to get ripped off.

    To me it is creative MLM. I think it is illegal because it's rarely taxed and the government doen't get their cut.
    If that was the logic then they'd make them legal and tax them.

    Though thinking about it, any income from an illegal pyramid should in theory still legally be declared and taxed.

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  3. #3
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    Re: Are pyramid schemes legal if everyone agrees

    The word scheme kinda makes it seem bad, but in it's purest form a 'Pyramid or Ladder' program doesn't rip anyone off. It's the people that rip people off look at this graph:

    (Scams I edited your post to better reflect your point)

    Technically if your 14 people get 14 people and so on it could explode into $$$$
    Last edited by Administrator; 03-31-2014 at 08:44 PM.

  4. #4
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    Re: Are pyramid schemes legal if everyone agrees

    Quote Originally Posted by Administrator View Post
    The word scheme kinda makes it seem bad, but in it's purest form a 'Pyramid or Ladder' program doesn't rip anyone off. It's the people that rip people off look at this graph:

    (Scams I edited your post to better reflect your point)

    Technically if your 14 people get 14 people and so on it could explode into $$$$
    The problem is the scheme either stops, which means the last people in lose their money, or it "succeeds" and you recruit the whole planet, which means the last people in lose their money.

    You could argue it's only "the second last people in" ripping anybody off, but it's an inherent part of the model.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
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  5. #5
    Join Date
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    Re: Are pyramid programs legal if no one gets scammed?

    Perfectly put by IBOFB and the big difference with legal MLM is that the last person in can either make money from retailing products or they can happily be customers. This won't happen in a pyramid because the products will not be wanted by genuine end users or there won't be a product at all.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  6. #6
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    Re: Are pyramid programs legal if no one gets scammed?

    any chance of getting Tony Rush to weigh in?

  7. #7
    Join Date
    Mar 2014
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    Re: Are pyramid programs legal if no one gets scammed?

    I think the way most MLM companies get away with Pyramid programs do is offer a product when you pay into the system. Like an ebook or mp3s (things that really aren't tangible products or are extremely cheap, like a membership pin, or certificate). That way it is a "club".

  8. #8
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    Re: Are pyramid programs legal if no one gets scammed?

    Quote Originally Posted by Mr T View Post
    I think the way most MLM companies get away with Pyramid programs do is offer a product when you pay into the system. Like an ebook or mp3s (things that really aren't tangible products or are extremely cheap, like a membership pin, or certificate). That way it is a "club".
    That's not enough to escape being a pyramid scheme, the product must have genuine value and be bought by people who are not doing so just to qualify for a bonus.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  9. #9
    Join Date
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    Re: Are pyramid programs legal if no one gets scammed?

    Quote Originally Posted by Mr T View Post
    I think the way most MLM companies get away with Pyramid programs do is offer a product when you pay into the system. Like an ebook or mp3s (things that really aren't tangible products or are extremely cheap, like a membership pin, or certificate). That way it is a "club".
    That's a common method of actual product-based pyramid schemes, yes. Whether it's "most MLM companies" is arguable. Certainly no DSA members do that, nor any of the DSN Top 100.

    Are there more flaky scams out there pretending to be legitimate MLMs than actual legitimate MLMs? I doubt it, not that go past a couple of guys sticking up a website for a few weeks anyway.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


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