Püramiidimüüke

Püramiidimüüke, also known as pyramid selling or network marketing, is a business model where individuals sell products or services directly to consumers through a network of distributors. The term originates from the structure of the organization, which resembles a pyramid, with a small number of top-level distributors at the apex and a larger number of lower-level participants below them. This model relies heavily on recruitment rather than traditional retail sales.

In a pyramid scheme, participants typically earn income by recruiting others into the scheme rather than by selling products or services to end consumers. This can lead to unsustainable growth, as the number of new recruits required to sustain payments to earlier participants increases exponentially. While pyramid selling can sometimes involve legitimate product sales, the primary focus on recruitment often distinguishes it from ethical direct-selling businesses.

Critics argue that pyramid schemes exploit participants by promising high earnings with minimal effort, only to leave most recruits with financial losses. Regulatory bodies in many countries, including the United States and European Union, have classified such schemes as illegal or fraudulent due to their deceptive nature. Legitimate multi-level marketing (MLM) companies, on the other hand, emphasize product sales over recruitment and operate within legal and ethical frameworks.

Participants in pyramid schemes may include individuals seeking financial opportunities, particularly those with limited business experience. However, the high failure rate and potential for financial loss make it a risky venture. Ethical alternatives include traditional retail, freelancing, or investing in established businesses. Understanding the differences between legitimate multi-level marketing and pyramid schemes is crucial for avoiding financial scams.