PYRAMID PLAN

In this plan, commissions are earned for the mere act of recruiting more new members to the plan, sometimes called "head hunting". New members are normally charged a substantial entry fee, often obscured by large up-front investments in inventory. (usually low quality products of little value).

Because of legislation overseas, pyramid companies are now more sophisticated and now disguise up-front loading with either higher membership fee, mandatory purchase of products and various other impositions like payment for computer and other information services, training materials etc.
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