What are the common pyramid schemes?

Common pyramid schemes:

1. Violent pyramid schemes

The most primitive pyramid schemes use restrictions on personal freedom or even kidnapping to achieve the purpose of pyramid schemes. Some people don't even know what the products are or have nothing.

2. Traditional pyramid schemes

People voluntarily join pyramid schemes by attending classes. If you have products but can't afford them at all, pyramid schemes will restrict some of your freedom, such as making phone calls, which is what we often see in the pyramid schemes of tens of thousands of people.

3. The new pyramid scheme

Some products can also be consumed, but the price is higher and you are completely free. You can do it if you want, but you can leave if you don't want to. Of course, it's hard to say if you pay the membership fee.

4. Network pyramid scheme

A pyramid scheme in which virtual products such as point cards and video advertisements are used to defraud membership fees.

5. Profit-free pyramid selling

Organizations that are developed by offline, but not for the purpose of making profits, such as religious organizations.

Extended information:

MLM refers to the illegal behavior that organizers develop personnel to obtain wealth by calculating and paying remuneration to the developed personnel based on the number or performance of the personnel directly or indirectly developed by them, or requiring the developed personnel to obtain the qualification to join on the condition of paying a certain fee. The essence of MLM is "Ponzi scheme", that is, the money of the latecomers is distributed to the income of the forerunners.

the new pyramid scheme: it does not restrict personal freedom, does not accept ID cards and mobile phones, and does not take classes collectively. Instead, it uses the banner of capital operation to attract people to cheat money, drive luxury cars, wear gold and silver, attract your friends and relatives with money, and finally make you lose all your money.

Reference: MLM _ Baidu Encyclopedia