How To Spot A Pyramid Scheme – Stacie Bosley

Vemma Nutrition, a company that started in 2004, offered a life-changing opportunity to earn full-time income for part-time work. To get started, individuals had to purchase a $500-600 kit of their liquid nutrition products and recruit two more members to do the same. The company grew quickly and became a global operation that brought in 30,000 new members per month at its peak. However, the majority of participants earned less than they paid in and Vemma was eventually charged with operating a pyramid scheme, a common type of fraud where members make money by recruiting more people to buy in. Pyramid schemes are illegal in most countries and can be difficult to detect as they are presented as many different things, including gifting groups, investment clubs, and multi-level marketing businesses.