Why do pyramid schemes not work?
By Drumman
@Drumman (305)
United States
June 29, 2007 2:17pm CST
I know everyone says you lose money on a pyramid scheme but I don't understand how.
I read a thing that works through paypal. There are two Paypal addresses listed and if your birthday falls during the first half of the year you send 5 bucks to the first person. If it falls in the second half you send 5 bucks to the second person.
Then you delete the name of the person you sent money to and add your own name. Then you post the message on 50 message boards. 50 is a lot, I'm sure 10 would work, but that doesn't matter since that's not important in what I don't understand.
It seems to me that about half the people who read it will have a birthday in place of where your name is located and will send you money. The other people will send money to the other guy and repost the message with your name still on there so a new group people will see it. Then about half of those new people will then send you money and the other half will repost the message yet again.
It seems to me that it would take a long time for your name to get off the list and thus you could receive 5 bucks from a lot of people for a long time.
I know this is illegal so I'm not going to do it, but why would it not work if I did do it?
1 person likes this
3 responses
@mortfinkle (497)
• United States
7 Jul 07
there are a lot of pyrmids out there and the only ones that are illegal are the ones that sell some b.s. product, there are legitimate ones like amway and team national that are legal but prey on people and eventually there are a lot more losers that winners, check http://kenscash.blogspot.com the top entry on the blog directs to a pyrmid payout type deal that cost nothing to join and you get rebate checks for stuff you normally buy online, then you can get people under you and only earn a portion of their rebates, this is apyrmid, but only in the payout sense, it is legal and profitable, in fact it is team nationa witjhlut the cost.... any dollar six times to a mailing list is a scam because less than 2 percent of the people involved pay the mony
1 person likes this
@badpenny (741)
• Lancaster, Texas
16 Jul 07
Obviously you don't know what a pyramid scheme really is ALL pyramid schemes are illegal, and if you are involved in one, you are subject to jail and fines. There are no legal or legitimate ones.
You said "there are a lot of pyrmids out there and the only ones that are illegal are the ones that sell some b.s. product" This is NOT TRUE. Then you say this "there are legitimate ones like amway and team national that are legal but prey on people" These are not pyramid schemes, They are network marketing companies that are very successful and are legitimate. There is a big difference.
People that want to know more about pyramid and ponzi schemes should type "pyramid and ponzi schemes" into any search engine, and you will get hits for several pages that explain what they are and why they are not only VERY illegal, but also why they don't work.
@draco666 (174)
• United States
4 Jul 07
Besides legal reasons, I believe they don't work because of doubt and people not following the system. Also Its possible for the system its self to be flawed some where deep in the fin print. I am not going to try to analyze the system at this moment but the one thing you most remember is the person at the top will always get the most money bottom line and they will always find a way they are on that list because money is the reason way its started. Just my 2 cents
1 person likes this
@babostwick (2036)
• United States
2 Jul 07
Besides it being illegal, I'm sure someone could report it just like that and who knows what will happen next. I've never heard of something like that. They don't work because they get exposed as being a fraud and a scam. I think that's the only way I can think of it possibly not working.
1 person likes this
