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A pyramid scheme is a fraudulent investment scam where participants make money primarily by recruiting new members into the scheme, rather than by selling products or services. The scheme is unsustainable because it requires an ever-increasing number of new participants to succeed.

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Here Are Some Of The Key Characteristics Of A Pyramid Scheme:

Promises of high returns: Pyramid schemes often promise high returns on investment, often in a short period of time.

Focus on recruiting new members: Pyramid schemes focus on recruiting new associates rather than selling products or services.

No real product or service: Pyramid schemes often do not offer any real product or service. The only way to make money is to recruit new members.

Unsustainable: Pyramid schemes are unsustainable because they require an ever-increasing number of new participants to succeed.

If you are considering investing in a business opportunity, be sure to do your research and avoid any business that has the characteristics of a pyramid scheme.

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