What is a pyramid scheme What are the modes of pyramid schemes?

The pyramid scheme refers to the illegal behavior of the organizer to develop people and gain wealth by calculating and paying compensation to the developed people on the basis of the number of people they have developed directly or indirectly or on the basis of their performance or by requiring the developed people to pay a certain amount of money as a condition for obtaining the qualification for joining the scheme. The essence of pyramid schemes is "Ponzi scheme", that is, with the money of those who come after the previous person's earnings.

1, violent marketing. The most primitive marketing, the use of restrictions on personal freedom and even kidnapping, to achieve the purpose of marketing, some even do not know what the product is, nothing. Now rarely seen.

2, traditional pyramid schemes. The use of classes to make people voluntarily join pyramid schemes, there are products but simply can not afford to consume. MLM organizations will restrict some of your freedom, such as phone calls and so on. We often see tens of thousands of marketing is this kind. The above 2 types are exactly what is being combated.

3, the new type of marketing. There is a part of the product, you can also consume, just the price is higher, completely free, you want to do if you don't want to do can go. Of course you pay a membership fee is not good.

4, network marketing. To point cards, video ads and other virtual products to cheat the membership fee in the form of pyramid schemes. The above 2 kinds of general no matter, out of the problem again.

5, no interest in marketing. To pull down the way the development of the organization, but not to the entry fee for the purpose of profit. For example, a religious organization. The above 2 kinds are allowed and even encouraged, often also survive in the cracks, earning money will always be a minority.

Expanded Information:

New type of pyramid scheme: no restriction of personal liberty, no collection of ID cards cell phones, no Collective on the big class, but to capital operation as a banner to pull people to cheat money, the use of driving a luxury car, wearing gold and silver, etc., with the money to attract, let your friends and relatives to join, and finally let you reach the point of blood money.

Chinese pyramid schemes are false companies, fictitious products, what is empty, just let you pull head, from the membership fee or join the fee to extract a small commission. Or control personal freedom, confiscation of property, so that you can not contact the outside world, every day to learn those pyramid scheme training materials, so that you learn how to cheat people, and then list, telephone or letter invitation, showdown, follow up, until all kinds of ways to pay all the entrance fee or joining fee.

Chinese-style pyramid schemes are based on mind control, i.e., letting you brainwash through their MLM training and then spontaneously go to the organization to carry out the pyramid scheme; some others will control your personal freedom, confiscate all your belongings, and make you approve of these lies through violence.

The usual terms

The police suggest that the following are the usual terms used in pyramid schemes:

1, "Beibu Gulf construction", "capital operation", "1040 Project", voluntary chain, private mutual financial management;

2. "Consumption rebate", "chain sales", "franchise", "Click ads for profit", "love mutual aid", "consumer retirement", "offshore funds, original stock investment

References:

MLM-Baidu Encyclopedia