Sales is the necessary ingredient that makes pyramid schemes work. Without sales, the company gets neither new recruits or any revenue<\/p>\n\n\n\n
Pyramid schemes are an illegal form of business where employees are payed to recruit additional employees. These new recruits are usually for the sales role, and are immediately incentivized to recruit people on their own. Not only do they sell the products to the customers, but they also sell the job to other people in their life. <\/p>\n\n\n\n
Pyramid schemes different from legitimate multi-level marketing (MLM) businesses because of the strong incentives for recruitment. MLMs, while they also don’t hold salaried employees, don’t pay their employees for simply hiring new employees. Instead, they hire a large amount of people through a referral program and pay them commission. Many well known MLMs are accused of being pyramid schemes, and some have even been ruled such in other countries. Examples include Vector Marketing and Herbalife. These groups often target college students and other lower-income brackets, as it is easy to be hired and promises good money.<\/p>\n\n\n\n
Both pyramid schemes and MLMs rely on familiarity to sell their products. Because they don’t focus on building a good reputation, they need their employees to leverage the trust they’ve earned on their own. Because the company may not be trusted, they prefer salesmen sell to the people they know personally. Often they will collect contacts from their employees, preferring to cold-call people they have personal connections to than follow leads to talk to a stranger. Either way, they skip past the part where the salesmen and the customer have to connect, utilizing unrelated relationships to push their product. <\/p>\n","protected":false},"excerpt":{"rendered":"
Sales is the necessary ingredient that makes pyramid schemes work. Without sales, the company gets neither new recruits or any revenue Pyramid schemes are an illegal form of business where employees are payed to recruit additional employees. These new recruits are usually for the sales role, and are immediately incentivized to recruit people on their […]<\/p>\n","protected":false},"author":387,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6479","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts\/6479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/users\/387"}],"replies":[{"embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/comments?post=6479"}],"version-history":[{"count":1,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts\/6479\/revisions"}],"predecessor-version":[{"id":6481,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/posts\/6479\/revisions\/6481"}],"wp:attachment":[{"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/media?parent=6479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/categories?post=6479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gccwebsites.com\/startupsales\/wp-json\/wp\/v2\/tags?post=6479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}