Pyramid Scheme, Cambodia Style - Cows, not Cash I rarely take sides in politics here, it's bad for your health. But I will make a personal statement here about pyramid schemes: they are bad for business. Pyramids are are usually unregistered businesses that drain money from the country. The economy of Albania collapsed due to uneducated people investing all their savings. In developed countries, pyramid or 'multi level marketing' schemes are heavily watched and regulated. Which is why many of them look to poorer countries for their growth. http://www.investopedia.com/university/scams/scams1.asp Most companies pay you a salary for your work. It's unusual for a company to ask you to pay them money before they pay you. But that's what ALL pyramids do. They also sell goods you don't need to survive - like collectibles or cosmetics. These are sold at a very high price. What is the real market value price of an ounce of gold? These 'up front' fees and inflated prices create the illusion of easy profit. But the only way for this illusion to continue is for the pyramid to grow and grow. People ask their family and friends to use all their savings. Eventually it stops. Here is a breakdown of the process. Any business student can do the math. http://web.archive.org/web/20031004115207/http://www.getfacts.com/amway/in_the_news/amway_n_goldquest_7899.html Some more news on Pyramid schemes: http://www.nepalnews.com.np/ntimes/issue131/domestic_brief.htm http://www.inq7.net/nat/2003/aug/19/nat_10-1.htm http://www.hinduonnet.com/thehindu/2003/08/22/stories/2003082210240300.htm http://www.bcstimes.com/dailytimes/printable.php?category=1&newsID=180 http://www.lankabusinessonline.com/new_full_story.php?subcatcode=11&catname=Law&newscode=184664176 Ultimately the huge sign-up fees and commissions are drained away to the top layers of the pyramid, outside Cambodia. Don't buy goods you don't need, at huge prices, from unregistered businesses. Want to make a profit and help people? You'd be far better off investing in a microenterprise project, like a cow bank! http://www.phnompenhpost.com/TXT/current/stories/koh.htm http://worldvision.org.nz/want_to_help/agri_programmes.asp http://www1.jca.apc.org/jvc/en/cambodia.html

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