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by AnthonyMouse
3170 days ago
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> Almost every business has a pyramid structure So do Egyptian Pyramids but that isn't the relevant structure. Do you really not understand how a multi-level marketing scam works? You pay to sign up, then you get paid for signing people up. The obvious problem is that this is recursive and exponential, which quickly exhausts the available supply of suckers so that the people at the bottom lose money because there is no one for them to sign up. That dynamic is not at play here. There is no recursion. You don't pay to sign up and then get paid for signing people up, you pay to sign up and then get paid for driving people around. The people who get driven around don't have to sign people up. There are lots of professions where you have to pay to work. Many trades require the tradesman to buy their own tools. A proprietor who wants to work in a booth at a fair has to pay for the booth. That doesn't make them Ponzi schemes. |
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There are dozens more MLM scams than the one you describe, and in fact they're more prolific.
"That dynamic is not at play here. There is no recursion."
'Give us money and we'll give you a chance at making more money.' That's quite recursive, and in some states, it's in fact a form of illegal gambling.
"There are lots of professions where you have to pay to work"
No, you don't. If you want to use ANOTHER BUSINESS and their facilities to do your work, then yes. Cosmetologists can work right out of their own home as long as they have the relevant license. They don't have to rent a spot at a barber shop. Strippers don't have to work at a strip club - they can advertise on Craigslist and do private parties instead.
"Many trades require the tradesman to buy their own tools."
Some states require that if you require a specific tool or item for an employee or user of your services for the purposes of conducting business, you the employer or service provider are required to provide it. Here in CA, where Uber is HQ'd, we have that codified in law.