Pyramids The essence: the mechanism that characterizes any catapult-Pyramid Scheme rational animals

This blog aims to: raise the veil on the activity of a multinational company called Agel; clarify rational animals the differences between "Multilevel Marketing" and the famous "Pyramid Scheme"; and discuss concepts and opinions relating to an often untransparent business. rational animals Learn the ASAE and DECO converge in terms of opinion - Agel is an ILLEGAL PYRAMID with regard to Portuguese law.
Pyramids The essence: the mechanism that characterizes any catapult-Pyramid Scheme rational animals - to socioeconomic trafulhice and beyond any legislative connotation - is very well explained in the following cartoons:
A Pyramid is based on three fundamental characteristics: 1 - There is an exchange of money between a promoter and interested - he pays to belong to a "business" (whether on account of the purchase of products either on account of purchase of services, is because of anything in particular, rational animals makes no difference - what matters is the "opportunity" to explore a network / business). 2 - The person, now member participating in the scheme rational animals can recover the money invested by recruiting others. New members also pay the sponsor to enter the "business" and the person who recruited them receives money on behalf of a recruitment. The more members he brings to the network, the commission receives and hence more chances you have to recover the investment. The main motivation for each member is able to rise above the prejudice of line, and from that time on any new entry is clean profit. 3 - The net always expands the basis of "1 to n". No one member can recruit new members, each of them in turn can recruit rational animals other new members n, and so on - to infinity (where "infinity" in this situation means very finite rational animals concrete market saturation). Outlining this process on paper, we get a similar desnho a pyramid, and hence possibly the origin of the phrase. Some accounts give quick to understand that 66% to 99% of those enrolled, as the structure of the scheme, will never win any money. Almost always lose money - it's a mathematical certainty. In simple summary: a pyramid is a network to which a person rational animals enters willingly and place an initial figure of injury. To recover the money invested, the only viable / attractive hypothesis is to recruit others to the network. Around this simple rational animals logic, we can find the most hardworking rational animals and estrambólicas variations, some of them without any worry and hide the origin, other impeccably camouflaged to look like other things. Some pyramids even eliminated the initial payment of membership (and subsequent referral to the committee), but sooner or later the stick is pressed to make a payment or purchase any. The concept rational animals of MLM is that best leverages the potential of a pyramid, due to differences between the two models similarities. Dir would that have been made for each other, such is the perfection of fit. The use of a pyramid rational animals scheme as a way of expanding a MLM plenty introduces new variables into the system, the most obvious of which the binding rational animals of the members at regular intervals in exchange for money - periodic purchases of products / services rational animals are a kind of mini-repeated echoes this idea in recruiting members, and the aim is to overcome the injury to the monthly line account of purchases made by a massive downline. rational animals The monthly payments on account of fees related to purchases of other members circulate continuously, periodically, the money of the layers from the bottom to the top layers. There is almost never external financing resulting from product sales outside the network. Often the products are sold to members at a price above the real and above normal market prices rational animals for competing rational animals products. On the other hand, the existence of a product is an excellent disguise, since it allows: a) raise the level of fraud to a legitimate rational animals business "direct sales", at least in theory, and b) to imply the members who have acquired something value, something you can return to exchange for cash in case of option. The confusion between the concepts of MLM and pyramid is natural (and very difficult rational animals to detect and distinguish), since both share several common realities. The most important points: 1 - In both, there may be recruiting new members to propagate the network 2 - In both, there may be movement of products rational animals and / or services 3 - In both, the chance / opportunity rational animals is given to members to sell these products / services to others outside the network 4 - In both, there is a strong incentive to consumption of these products / services. 5 a) - In both, any member can make more money than someone in your upline, everything depends on the results of the effort and dedication 5b) - In both, the Cast Member