Is this a pyramid scheme?
March 16th, 2009
hughmanwho asked:
Ok, so I have an idea and want to start working on a website I’ve been thinking about for a while now. In order to get a certain service people have to pay a price, however I would like to allow people to make some of that money back(and maybe have the amount of money gotten per person convinced increase as they recruit more people). So it’s just supposed to be a way to advertise the site cheaply by having members recruit more members, but was wondering if that could be looked at as a pyramid scheme, if members are required to join before they start advertising in this way. It is not central to the money making.
Ok, so I have an idea and want to start working on a website I’ve been thinking about for a while now. In order to get a certain service people have to pay a price, however I would like to allow people to make some of that money back(and maybe have the amount of money gotten per person convinced increase as they recruit more people). So it’s just supposed to be a way to advertise the site cheaply by having members recruit more members, but was wondering if that could be looked at as a pyramid scheme, if members are required to join before they start advertising in this way. It is not central to the money making.
Is it only a pyramid scheme if profit is the only goal?
I have heard this referred to as network marketing and I believe I am ok.
Morally I don’t feel bad going through with this but the idea is already a little risky and some may look at me as a bad guy. So, I don’t want to leave easy ways for me to possibly be sued.
Categories: pyramid profit
That is called Affiiate Marketing. No that is not a pyramid scheme. Even Yahoo has an affiliate program. They pay people for referring others.
Here is yahoo’s program for example:
If the idea is not to rip people off then np.
This is similar to network marketing. I will say that 95% of the people you talk to will see it as a lame way to make money and will not join.
Not a scheme by any means. Just offer a good prduct or service whatever it maybe. And you will be ok. Just be true, and I think by offering something back is a reward and will only do you and your business good. I wish you the best of luck.