People work to make money, not lose money.

Unfortunately, if you get involved with a pyramid scheme, chances are you will make little to no money, lose money, or get into debt.

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So how can you recognize these predatory schemes and differentiate them from legitimate job opportunities on your next job hunt?

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What Is A Pyramid Scheme?

A pyramid scheme is a type of multi-level marketing (MLM) business that is illegal.

Both MLM and pyramid schemes involve selling products to family and friends (your network) and recruiting other people to do the same.

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But with pyramid schemes, your source of income is largely based on recruiting new members to the scheme instead of how much product you sell.

Characteristics Of A Pyramid Scheme

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Require large start up costs

You have to pay for inventory or pay a fee to be involved

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Emphasis on recruiting

More emphasis placed on recruiting than selling the product

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Exaggerated earning potential

Promises of high returns in a short amount of time

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Complex commission structure

The business model is vague, and it is hard to understand how you will get paid

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How To Recognize A Pyramid Scheme When Job Searching


Check the opportunity for characteristics of a pyramid scheme.

Ask questions

Legitimate business opportunities will welcome questions. If you cannot get specific answers to questions or information is vague, it is not a good sign.

Do your homework

Check to see if the company has any complaints filed against them.

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While looking for a job, a friend that you haven't spoken to in a while sends a message asking if you'd like to 'be your own boss' and earn lots of money quickly by selling essential oils and getting others to do so too. What should you do?

Take Action

Byte Author Uploaded Image Don't get taken in by a pyramid scheme!

Stick with job opportunities that are reasonable, legitimate, and offer you fair compensation for your time and effort.

The next time you are unsure whether a job is a pyramid scheme:


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