What are the signs of a pyramid scheme, and how can I avoid them?

Warning signs of a pyramid scheme include:

1. Promises of high returns with little or no risk.
2. Emphasis on recruiting new members rather than selling a legitimate product or service.
3. Complex compensation structures that are focused on recruiting rather than product sales.
4. Lack of genuine product or service being offered.
5. Pressure to invest large sums of money upfront.

To ensure you don’t get involved in a pyramid scheme, consider the following:

1. Research the company: Verify the legitimacy of the company and investigate its track record.
2. Understand the business model: Be cautious of schemes that emphasize recruitment over product sales.
3. Ask questions: If something seems too good to be true, it probably is. Ask for more information and clarification.
4. Seek advice: Consult with financial experts or regulatory authorities if you have doubts.
5. Trust your instincts: If something feels off or overly complex, it’s best to avoid getting involved.

Remember, being informed and cautious is key to not falling victim to a pyramid scheme.