Originally Posted by nepg
So...how do you break it to a friend that they've been sucked into a pyramid scheme? Had a friend give me an impromptu presentation. I immediately knew it was a bit of a scam, but chose to look into things a bit more for my friend's sake.
There's a fine line between network marketing and pyramid schemes (I wouldn't want to be stuck in either because I'm simply not a salesman). After much research, I've found the company to have a very clever disguise, but is definitely a pyramid scheme. There's a product they "sell", but their commission is based on recruitment.
What is the best way to tell someone who thinks they're doing something awesome that they done ****** up?
In my experience, there's no way to do it. Once someone's in far enough to try to pitch the ****** idea on their real friends, they're in deep. They've been sold. They're not going to believe you until they lose whatever startup fee (i.e. $200-300 starter pack of vitamins or knives to sell, maybe a big fee for a conference) they put in it. The people get downright cultish.
I've been through this so many times with people at work trying to sell me on becoming "my own boss" even though I'm the top guy in my building and see my boss once every two weeks, lol.