Pyramid Schemes
Pyramid schemes have been taking money from innocent victims for hundreds of years. By definition, a pyramid scheme is an unsustainable business model. What this means is that at some point, the business model would fail if it continues over time and this is a mathematical certainty. The mode of operation of pyramid schemes is very simple. Someone at the top of the pyramid recruit someone with the promise of a high rate of return on investment of a few hundred dollars. This system can turn around almost any type of investment opportunity to encourage the participation of others. The way you say they will invest your money is completely irrelevant, all they do is to entice new people to enroll and invest with them.
As more and more people register unwittingly involved in fraud, money flows upward in the pyramid. This allows those who started this system are paid, and the first few levels below them receive some return on their investment, but the vast majority of the participants involved in this pyramid scheme is simply stolen from the investment made. Mention that pyramid schemes are not a sustainable business model and always fail if they continue long enough. This is because the reason this system loses forward momentum at some point after enough people have signed up and just ends, but if the system continues indefinitely and the number of participants doubled, around level 13 for keep the system running is registered would have people all over the world, something completely impossible. The main thing that denotes whether or not a chance in the pyramid scheme is that while money changes hands, there is no real product being sold. This is confusing for some to assume that multilevel companies are pyramid schemes. While it is true that some members at the top of the pyramid schemes earn money simply by referring to other people, but usually there are no products involved and / or services as part of the opportunity.