Test: Financial pyramid
Can you spot a pyramid before you put money in? Choose what you would do, and see the result at the end.
1. A friend invites you to a closed group: joining costs $500, the profit is 25% a month, “the main thing is to invite people”.
A joining fee, an exact high percentage and a profit that depends on inviting people together mean a pyramid.
2. Someone you know has been getting money for three months and says: “It is real — they pay me”.
A pyramid pays its first participants with new people's money, so that they convince others.
3. A company sells a product, but your income depends only on how many people you invite.
If the income comes from invitations, not from sales, the product is only a front.
4. Every participant invites three people. How many new people are needed at the 20th tier?
3 to the power of 20 is 3 486 784 401. That many people will never join a scheme, so it is bound to collapse.
5. A relative has joined an “ecosystem” and invites you too. What do you say?
In a quarrel, a person defends themselves. One calm question often helps more.
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