How to Use the Pyramid Scheme Business Model

In a pyramid scheme business model, money is generated by recruiting new members and inserting them into a multi-level structure, much like a pyramid. Money is distributed to individuals in the higher levels. In its purest form, a pyramid scheme business model offers no services or products and is usually considered illegal because it is non-sustainable. However, you can use certain elements of this model in other business applications, such as multi-level or network marketing.

Instructions

    • 1

      Offer a specific product or service to go along with your pyramid business model so that it is not deemed illegal. Pyramid schemes fail because only money is exchanged or because they involve products that are priced so highly that they no longer represent a fair market value. To use a pyramid scheme that will continue to generate income for its members, a fair service or product must be given in exchange for the cash investment.

    • 2

      Develop a persuasive sales pitch to your prospective participants. Since pyramid schemes are at least 100 years old, it is important to differentiate your plan from every other one that has failed in the past and to communicate the differences effectively. You must develop a thick skin, since most people will immediately reject this pitch as soon as they realize it is part of a pyramid scheme.

    • 3

      Establish a core membership of close friends and associates to use the pyramid business model. It will be easier to convince others to join if you can show that individuals are already committed to the enterprise and are currently generating income.

    • 4

      Draw up specific diagrams that illustrate how the pyramid works, how cash is generated and how much the participants can expect to earn within a specific time. Be realistic and downplay the "get rich quick" aspects, which a majority of people will interpret as a scam.

    • 5

      Assist the members in levels below you by helping them demonstrate the pyramid venture to other prospective members. The idea is to expose as many people as possible to a pyramid scheme business model, since the rejection rates are usually high.

Related Searches:

Comments

You May Also Like

  • Elements of a Business Model

    Elements of a Business Model. A business model is far more than a competitive strategy. Instead, it includes each component of the...

  • How to Spot a Pyramid Scheme

    Pyramid schemes, or multi-level marketing systems, work by promising prospective investors that there will be large gains on their initial investments from...

  • How to Avoid Pyramid Schemes

    There are legitimate ways to achieve wealth, but getting involved in pyramid schemes is not one of them. These are marketing frauds...

  • How to Spot a Travel Pyramid Scheme

    A pyramid scheme is designed for a person to make money from others they recruit for a certain business. Those recruited are...

  • Organization Pyramid Structure

    The so-called pyramid structure of an organization refers to the tendency of an organization to have a greater number of base level...

  • Does Cash Gifting Really Work?

    Cash gifting is a money making scheme that purports to allow participants to make money by doing very little work. In essence,...

  • How to Write a Business Revenue Model

    A vital part of any ongoing business success is a plan to acquire and maintain sources of revenue. Without income, a business...

  • Why Isn't the Stock Market Considered a Pyramid Scheme?

    The stock market is a large financial entity integrated with many components of the economy. It serves many functions. The stock market...

  • The Differences Between a Ponzi & Pyramid Scheme

    Ponzi schemes and pyramid schemes are similar types of investment fraud. The schemes revolve around the recruitment of new investors with promises...

  • Are Pyramids Illegal?

    Pyramids such as the tombs built in Egypt and pyramid-shaped objects are legal. Pyramid schemes are illegal in many countries including the...

  • Reasons for Credit Card Rejection

    Reasons for Credit Card Rejection. Credit card rejections are a daily occurrence because applicants either have accumulated a large amount of debt...

  • About Egypt Pyramids

    Built nearly 5,000 years ago, the Egyptian pyramids still remain an astounding accomplishment of ingenuity and engineering. Designed as burial places worthy...

  • What Is the Meaning of the Crystal Pyramid of Success?

    Crystal pyramids are made of glass, quartz, or some other crystal. They are cut into smooth, usually four-sided pyramids. Spiritually, crystal pyramids...

  • How to Make Investments Using a Risk Pyramid

    Investing for the future is an uncertain proposition. With the proper knowledge and guidelines, an investor can keep from getting confused and...

  • Strategy Pyramid of a Marketing Plan

    The term "strategy pyramid" refers both to a methodological approach to running a marketing organization and to a particular document that captures...

Related Ads

Featured