My Blog, Your Money

Today, I read a post at Get Rich Slowly about pyramid schemes. It reminded me of an incident a few months back when a group of “associates” from Usana gave their pitch to some friends of mine who were impressionable college students and I just happened to be tagging along. Fortunately, I sensed that the company was bad news and after I got confirmation through some quick Internet sleuthing, I was able to convince my friends not to participate.

According to Wikipedia, 96% of those who participate in a pyramid scheme lose money on their initial investment. Sure, that means 4% make money, but are you willing to risk alienating friends, family, and strangers just for the small chance at making a few bucks?

The lesson here, readers, is to beware of pyramid schemes. If you hear of a business model that is based on recruiting other enrollees for a fee, that should be your first warning. Here’s a comprehensive list of identifying features courtesy of Wikipedia.