Recruitment Into a Chain of Multiple Levels of Participants

Beware of programs where you are recruited into a chain of participants (agents, representatives, etc.), which are organized into multiple levels. You may just be setting yourself up for wasting precious time and money.

All illegal pyramid schemes, chain marketing schemes, chain letters, and multi-level marketing (MLM) programs have this multi-level chaining characteristic in common. For no-product pyramid schemes, income is totally dependent on downline recruiting. Service and quality of delivery do not apply, as there is nothing substantive to sell or service.

Persons who are recruited into such a multi-level chain of participants are vulnerable to pyramid scheme fraud, depending on factors that can be identified by answering the questions to follow. If the answers to all of the upcoming questions are "yes," you are far more likely to lose money than to see any profits. You may also be liable to action against you by enforcement agencies.