Definition:
The term Ponzi scheme is often misused as a synonym for a pyramid scheme, the essential difference is that Ponzi scheme participants are not offered any direct financial incentive for bringing in other participants. However, they are likely to tell their friends about the investment opportunity. The fact that early participants in a Ponzi scheme are paid off from the monies collected by later participants is normally known only to the operator of the Ponzi scheme. The participants are instead offered a story to explain their high investment returns.
Related Terms:
Multilevel Marketing
Network Marketing
Pyramid Scheme
Related Information:
Multilevel Marketing (MLM)
How to Decide If Network Marketing Is Right For You
Related Books:
You Can't Cheat an Honest Man
False Profits
More Books about Multilevel Marketing
|
|
Go to Full Glossary |
