Jeffrey Babener has a wonderful explanation of illegal pyramid schemes. You can read the full article at MLMAttorney.com, but we’ll post his excellent story here.
The story is about a gentlemen, we’ll call him Al, who sells a case of canned tuna to Betty for $10. Betty sells it to Carl for $20, and Carl sells it to Donna for $30. The case of canned tuna gets sold again and again to Ethel, Fred, Gail, Henry, Irene, and finally to Jackie who buys the case for $500.
Jackie opens a can of tuna from the case and finds it rancid. It’s inedible!
She goes back to Irene and complains, “I bought this case of tuna for $500 and it’s rancid.”
Irene tells her to take it to Henry, Henry tells her to take it to Gail, and so on until Jackie gets all the way back to Al and says, “You’re the one who started all of this! I have a problem!”
Al asks, “What’s your problem?”
Janice says, “Well, I bought this tuna, I opened it up, it’s rancid. It’s no good!”
Al asks, “Well, what’s your problem?”
Janice says, “Don’t you understand? It’s rancid. How am I going to sell this?”
Al assures her saying, “Well, you don’t have a problem.”
Janice replies, “What do you mean I don’t have a problem?”
And Al explains, “You don’t understand. This tuna is for selling, not for eating.”
If you think about that metaphor, it may help explain the difference between a legitimate company and a pyramid scheme.
If you want to learn more about how to keep yourself and your family safe by avoiding pyramid scams, you’ll want to read the free report Big MLM Lies. It will help you keep your money in your wallet and yourself out of jail!