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TYPES OF PYRAMID SCHEMES
There are basically two types of Pyramid
Schemes - the Naked Pyramid Scheme and the
Product-based Pyramid Scheme. The Naked
A pyramid scheme is one in which no product is
offered. The Product-based Pyramid Scheme is
operated in most instances as a Multi-level or
Network Marketing Scheme in which a
participant is required to purchase a product at an
inflated price in return for which he receives:
(1) the right to sell a product and
(2) the right to receive a return for recruiting other
participants in the program.
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