shutterstock_132031310 What is a Ponzi scheme?

A Ponzi scheme or pyramid scheme is a business model that depends on attracting an exponentially growing number of new participants. The supposed profits do not come from the sale of goods or services, but entirely or mostly from payments made by newly recruited participants.

When referring to snowball systems or pyramid business models a growing number of participants have to be acquired by already existing members who receive a premium payment for each new participant thus keeping a steadily growing snowball rolling downhill.

Profits for participants are generated almost solely by the fact that new participants get involved in the system and invest money without receiving any service or product. In most countries these systems are banned.

Profits for participants are generated almost exclusively by the fact that new participants get involved in the system and invest money without receiving any service or product. In most countries these systems are banned.

Do you have questions about a business model that appears misleading or unlawful?

Have you received an offer from a company to earn money while being inactive?

Do you have entered a contract but suspect a pyramid scheme and wish to reverse the contract?

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