Hi there guys im very new so go easy on me Sorry if this is in the wrong section Could you guys help me define exactly what makes a pyramid scheme a pyramid scheme? Say a community offers its members the chance to act as affiliates and gain a % of the signup fee for each member they obtain, without making any sort of "make millions online" promise, and it is still a completely viable active community. Could it still be classed as a pyramid scheme? or is that just an affiliate program?
hi Tom, a pyramid scheme normally involves money being exchanged to enrole in a campaign without normally being a product or service involved. ie. sign up at number 12 spot and everyone below you will earn 1.00 etc. from what you state above its more like an affiliate scheme you earn what orders you bring in and get paid commission. Kind Regards Stephen Doyle www.ccuk-ltd.com Killer Copy Writing Super Human Sales Training Direct Marketing
You also know if it's an pyramid scheme if it seems that you are doing all the work getting leads and handing off "dividend" payments to the person that referred you to the same network.
but everyone would just be making the same amount of money per person they referred it wouldnt run multiple layers deep or anything simple, refer a mate and get a % comission
Essentially if you are buying something from someone else to turn around and sell to others and giving a percentage to someone else then it is probably a pyramid scheme. Essentially the original developer gets a lot of money, and the lower you are in the pyramid the less you make.
it doesnt really work like that though because there isnt a pyramind a user is paying to join a community, and by joining they become an affiliate and get say 50% comission of each person they refer definately no pyramid