A couple of years ago I became interested in the topic of pyramid schemes and related “business opportunities”. I began researching these organizations, their structures, their scams, and the people who participate in them.

The research (not scientific studies, rather investigating what goes on) evenually led to an opportunity to participate in a book project. I did more research on pyramid schemes, and one of their creators, Charles Ponzi.

I then focused my investigation on multi-level marketing schemes. These appear to be legitimate opportunities, mainly because they do have bona fide products for sale. The owners of the companies aggressively market these opportunities as the way to financial freedom, flexibility, and unlimited earnings. These things appeal to the masses, so the companies have claimed legitimacy because of wide-scale acceptance.

Again, I became involved in a book project focused on one particular “business opportunity”. I sought out insider information about the company and its workings. I was particularly interested in the characteristics of the organization that draw in the members, and how the members are kept active in the opportunity, even when the members are not seeing positive results.

In reality, these opportunities have many of the classic signs of pyramid schemes. This doesn’t just mean that they have a pyramid-like shape (which they do), but that they essentially require members at the bottom of the pyramid to buy-in, which helps elevate those at the top to even higher levels.

More to come!