The company’s that everyone knows are MLM trash (HerbaLife, JuicePlus, ect). When I was looking for a job I naively joined a seminar discussing CutCo Knives. Come to find out these dud muffin companies have been around since my mom was growing up, and are somehow still operational? Wouldn’t the BBB or whatever business bureau operates in the US (FTC?) have these scams shut down by now? I understand that new ones are popping up all the time but im referring to the ones that have been around forever now.
In: Economics
It varies, but general awareness that something is a pyramid scheme can actually help the scheme. It preselects for people who are unaware of the scheme or people who think it can work despite what they know. Either way, people will stay in the scam longer because getting out requires them admitting that they did something generally thought of as stupid. That’s very hard when everyone you know knows that you’re in the scam because you’ve already tried selling to them. Even common knowledge isn’t universal. There’s always some small group that is out of the loop.
Successful pyramid schemes don’t usually violate the law outright and when they do they have cash to pay fines. As long as they’re still getting new people/income, they’ll keep going.
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