Pyramidenverfahren

The Pyramidenverfahren, also known as the Pyramid Scheme, is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than selling products or services. The term "Pyramid" refers to the structure of enrollments, which typically forms a pyramid shape with a single founder at the top and many new recruits at the bottom. The key characteristic of a Pyramid Scheme is that the compensation for participants primarily comes from their recruitment of new members, rather than from the sale of a product or service.

Pyramid Schemes are illegal in many jurisdictions due to their inherent fraudulent nature. They often promise high returns with little risk, which is unsustainable in the long term. The structure of a Pyramid Scheme relies on a constant influx of new members to support those at the top, which is not feasible over time. As a result, most Pyramid Schemes eventually collapse, leaving many participants with significant financial losses.

Despite their illegality, Pyramid Schemes continue to operate, often masquerading as legitimate businesses or investment opportunities. Common tactics used by Pyramid Schemes include aggressive recruitment, high-pressure sales techniques, and the use of celebrity endorsements to attract new members. It is important for potential investors to thoroughly research any business opportunity before investing, and to be wary of promises of high returns with little risk.