I got a buddy getting involved w/ YTB.com: a publicly traded company that has all of the classic signs of a pyramid scheme. It's basically selling travel like an expedia from your own little website that they give you, and each person you recruit you get a percentage of all commissions they sell and so on. You need $500 to "sign up" and $50 a month to "maintain the site."
I warned him to stay away, but I think he may want more convincing. The reason is because his mom is elderly, and she got involved and she has made $100K in 9 months. So he sees the hard evidence that shes making that much money and its hard for him to resist. Is anyone familiar with this company or have personal stories to share?
Here is what I have already told him:
1. Just bc a company is publicly traded doesnt mean they arent involved in illegal activity. Especially when they are an OTC BB stock which isnt as heavily monitored as NYSE and NASDAQ.
2. They emphasize recruiting instead of selling travel, classic pyramid sign.
3. Their publicly displayed financials (since they are a publicly traded company), show more and more of a loss, each year that passes. (A sign that the pyramid is getting to big and they cant pay out commissions.
4. Pyramid schemes do pay money out, so its not impossible that she has made money, but one it gets too big for its own good, it collapses.
5. A saw a message board where the BBB did a write up on how they are suspected of being a pyramid scheme. But when I go to BBB's website, one of the branch locations of YTB is apparently a "member" of the BBB.
I also added a few other things. Anyone have any other reasons for me that may have more experience of why this is a pyramid scheme and that he should stay away?
I warned him to stay away, but I think he may want more convincing. The reason is because his mom is elderly, and she got involved and she has made $100K in 9 months. So he sees the hard evidence that shes making that much money and its hard for him to resist. Is anyone familiar with this company or have personal stories to share?
Here is what I have already told him:
1. Just bc a company is publicly traded doesnt mean they arent involved in illegal activity. Especially when they are an OTC BB stock which isnt as heavily monitored as NYSE and NASDAQ.
2. They emphasize recruiting instead of selling travel, classic pyramid sign.
3. Their publicly displayed financials (since they are a publicly traded company), show more and more of a loss, each year that passes. (A sign that the pyramid is getting to big and they cant pay out commissions.
4. Pyramid schemes do pay money out, so its not impossible that she has made money, but one it gets too big for its own good, it collapses.
5. A saw a message board where the BBB did a write up on how they are suspected of being a pyramid scheme. But when I go to BBB's website, one of the branch locations of YTB is apparently a "member" of the BBB.
I also added a few other things. Anyone have any other reasons for me that may have more experience of why this is a pyramid scheme and that he should stay away?