eli5 How do multi-million dollar pyramid schemes stay around for so long?

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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

41 Answers

Anonymous 0 Comments

Just remember that the product is not what they are selling. It’s the OPPORTUNITY for you to sell the product. That’s the scam. The product may be legit but marked up so high that you probably won’t profit. There is only so much 10 percent of the top to skim. That’s how pyramid scams work. You are under a guy who is under a guy etc etc.

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