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There’s a Ponzi Scheme Epidemic — Here’s How to Identify and Avoid Them
We all try our best to make the best financial decisions. Part of that may be looking for great business opportunities. Where those two things don’t align is with Ponzi schemes.
Also known as “pyramid schemes,” Ponzi schemes are faux business opportunities that prey on those who are not in the know, with promises of huge awards and “too good to be true” returns. Here’s a free piece of advice: “too good to be true” almost always is.
So let’s go over some ways you can identify a scam scheme when it comes your way and how you can avoid falling into its financially devastating trap.
Vagueness
What is the company and what does it do? Can you explain the business model in a very simple way? If you can’t and it just seems overly complicated, there’s one red flag. Any professional business owner or investor can explain to you in plain English exactly what you’re investing in.
But if the business model involves so many steps, layers, and people working above and below you, that is most likely a Ponzi scheme.
Pressure
Ponzi schemes require constant recruitment in order to survive. If a recruiter is constantly pressuring you to join up (and they sound desperate), you might be…