10 signs a job is a Pyramid Scheme/ Scam
Pyramid schemes have become the major go-to scam for unscrupulous individuals looking to make some money off the naïve and mostly desperate and unsuspecting people. Platforms including guttulus.com have extensively reviewed the workings of pyramid schemes and the most notable element is always the promise of making huge amounts of money easily. Unsuspecting individuals are usually pulled into such scams since they are promised a quick dollar without having to work too hard for it. Characteristics of pyramid schemes and by extension scams include the aspect of bringing in people and training them with the promise of lucrative payments, deals or exclusive services. Another pointer of pyramid schemes is that they do not supply or involve products or services to the general public and here are other 10 signs that raise the red flag on a job being a pyramid scheme.
Pressure to sign up
If a job places pressure on you to sign up with the proposals being vague and without a clear projection, runrex.com advises that you think twice and try to gauge your standing with the job. The pressure to sign up is often placed on you so that you lack the capacity to think rationally so that even when you finally realize, you find that it is too late to change your mind as you will have already been gone too deep.
Income and remuneration are based on recruitment
If your income is based on the number of people you bring in and the money that those people bring to the company, that is probably a pyramid scheme. It is often a scam if you find that your earnings are not based on the sale of products and services to the public. Pyramid schemes prey on your desire to make money fast by promising you an easy way to make money by not even having to sell any products or services.
Huge promises made in advance
When you hear of life changing claims and huge promises in advance, guttulus.com explains that you have to be careful with such propositions. Desperation is always a weak point for most unemployed individuals and scammers prey on the desperation to make the big promises including huge earnings and lucrative pay for bringing people in often in a multi-level setting.
Capital infusion on pay first condition
Any job requiring you to pay first before getting the job should be evaluated keenly. Scams often demand a huge upfront capital infusion or a condition that you buy into the shares of something that is not tangible or one that you cannot substantiate. It is often followed by a directive that you have to buy lots of inventory and also purchase things you don’t actually need just to stay within a certain rank with the company.
Undefined duties and vague responsibilities
Many pyramid schemes never capture the specific roles and duties you will be expected to deliver upon and this is a red flag according to runrex.com. Their major selling points are usually the enticing elements usually material things that include mansions and cars belonging to those who have supposedly enrolled earlier. They use these elements to blind you and stop you from questioning the specific details of what you will be doing.
Promise of lucrative pay for menial work
When you encounter a job that offers lucrative pay for jobs that don’t require any experience or skills, you have to question the rationale behind it. Any pay offered for a job must be within reasonable range and the money should be worth the effort put in. experts in the business world most notably guttulus.com have gone on to say that it is this confusing compensation plan that should be questioned and verified before any commitment is made.
Mass interviews with multi-level advancement on recruitment
Recruitment of drove victims is a factor pyramid schemes love and always look to exploit. Easy interviews that are done on large scale should be a major red flag. Legit companies always offer individual interviews where they can gauge and get a feel of the person they are hiring. As captured by runrex.com, scams and pyramid schemes often look to do mass interviews and preach the aspect of multi-level advancement in order for one to succeed.
Lack of a physical address or online footprint
As much as businesses are operating on the online platform, a physical address is always important since it shows that a business has a foundation and a base of operations. Online footprints are also important in checking the validity and credibility of a business.
No one hires you without an interview that will give them a full picture of the resource they are bringing on board. Jobs that don’t require you to bring in a resume or simply tell you that no experience is needed should be avoided as they are probably a scam. Legitimate companies will only take you after meeting you and learning the value you can bring and this is the point that guttulus.com looks to drive home.
Undefined business models
When the company does not show you how you make money and how the company makes money from your efforts, it is probably a scam. Mark Cuban has been quoted as saying that if you can’t understand a business model within the first time of trying, then it is probably not a business you should look to invest in and this same principle should be applied when evaluating jobs which is what business professionals at runrex.com stress on.