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How to spot a pyramid scheme - Stacie Bosley

6,331,243 views November 1, 2019 5:02

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ChannelTED-Ed

In brief

You’ll learn to recognize the red flags of pyramid schemes—how they lure recruits with promises of easy money and rely on endless sign-ups rather than real product sales. Stacie Bosley breaks down the tactics used and explains why most participants lose money, using a real-world example from a nutrition company. This is useful for anyone evaluating income opportunities or suspicious business models.

Questions & answers

What’s an example of a pyramid scheme mentioned in the video?

A 2004 nutrition company where members had to buy a $500 kit and recruit two others, but most earned less than they spent.

Description from the creator

Learn the techniques and tricks that pyramid schemes use to recruit new members and how to avoid being fooled yourself.

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In 2004, a nutrition company offered a life-changing opportunity to earn a full-time income for part-time work. There were only two steps to get started: purchase a $500 kit and recruit two more members. By 2013, the company was making $200 million. There was just one problem -- the vast majority of members earned less than they paid in. Stacie Bosley explains what a pyramid scheme is and how to spot one.

Lesson by Stacie Bosley, directed by Wooden Plane Productions.

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About this tutorial

TED-Ed published this 5:02 video tutorial on November 1, 2019. It has been watched 6,331,243 times on YouTube.

Channel
TED-Ed
Category
Education
Duration
5:02
Published
November 1, 2019
Views
6,331,243
Likes
184,447

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