how to recognize pyramid scheme

maybe u will feel bored by my recent posts those keep discussing pyramid scheme..however, i think it is a need for me to share this knowledge with u all from make you aware of it and prevent you to be the next victim.

Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public.

here are two tell-tale signs that a product is simply being used to disguise a pyramid scheme:inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public.