In Part 2, we discuss the basic levels of companies that are designated as pyramid schemes
In part one, we discussed understanding the basics of pyramid schemes and why they may seem appealing for people to join. Many companies that you may have already heard of and thought were reputable companies actually may be one that is participating in this marketing style. Now, technically the "business" word for a pyramid scheme is "multi-level marketing" and is something that someone that sells for these companies will recite till they're blue in the face if you ever tell them what they are actually participating in.
Now, in saying that, if someone that you know is participating in one of these pyramid schemes, talk to them. They honestly may not even know what they are contributing too - because the advertising for these companies is sneaky - and can sound appealing to people who do not have a whole lot of time on their hands.
It Works is a multi-level marking company that focuses on the weight loss market. The company sells things such as keto coffee, weight loss pills, tummy wraps, and protein shakes. These products appeal to women (and possibly men) that want to lose weight but do not want (or do not have time) to go to the gym or participate in any type of normal weight loss. They usually advertise that their products help you lose weight fast and advertise that their products will help you live a healthier and longer life.
These products are targeted to sell to the same women that want to help sell the products - women that live a busy life and are short on time. For the women buying the products, they are busy with work or having a family, or going to school, and do not have time to focus on eating right or spend time in the gym. For the women selling the products, they are busy with the same thing and are wanting a way to make money fast and with little to minimal effort - which no one can fault them for.
Mary Kay and LuLaRoe are companies that also focused on selling makeup and clothing products, respectively, to women that are busy in their daily lives and want something that is easy to buy and can make them feel good about themselves. Mary Kay focuses on selling makeup and hosting events in order to target new recruits as well as possibly have them purchase some of their products. LuLaRoe focuses on selling leggings and hosting marketing events. In order to become a LuLaRoe consultant (which is want the multi-level marketing companies to call their "resellers"), you have to pay upwards of $1,000 and to sell the leggings you've purchased at a high markup in order to show that you should be able to stay with the company.
These companies may seem like they are something that you want to participate in, but it is not fair to you as a worker to have to pay for the products you have to then turn around and sell. If you cannot turn a profit, you're going to be suffering a heavy loss. Why does it seem that these pyramid schemes target women? How can you help out a friend that is stuck in one of these? Find out these things in Part three.