There have been many people recently who’ve been getting involved in pyramid schemes to make extra cash.
They’re not all bad, but, how do you ensure you make money once you get involved?
They’re coined pyramid schemes, where people are recruited to help sell a product or service.
"The way that a pyramid scheme works is even if though there may be a product or services or selling that product or service is not the real way you are making money," says Timothy Caminos of the Hawaii Better Business Bureau
Caminos says there are pyramid schemes out there where no matter how much product you sell, you are only making money from the people you recruit.
"If I’m on the bottom and even though I only bring in two to three people once that’s done and I’ve purchased all of the product already I’m going to be stuck with it and I’m not going to make any money off of it," he says. "Once it collapses the only people that really recoup any money are the people on the top of the pyramid."
The Hawaii BBB says there are several tips to know before getting involved.
"Make sure that the company is licensed make sure that the product is registered it’s a registered real product," Caminos says. "Sometimes you’ll be selling products that don’t really have a name or it’s a generic product."
Though, experts say there are multi-level marketing businesses that people can get involved with and be successful.
they work differently from most pyramid schemes.
"They do rely on you selling products or goods and buying the products and goods to sell. However the majority of the money made is made from the actual product not from bringing someone in to sell the product or buy the product," Caminos says.
See the original article at: KHON2 Local News
