How To Start A Pyramid Scheme

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The Six Steps To Creating a Legal Pyramid Scheme
1. Find a Product
2. Make a payout structure
3. Sell a Financial Fantasy
4. The Three Key Groups
5. The Training, Attempt, Failure, Event Loop
6. Cut Off The Bad Apples

FOLLOWUP VIDEO: visualizing the real odds of multi level marketing



Lewis OfMan – Yes

Edo Lee – Black Coffee

ibrahim – enamored (w/Limes)

Seneca B – New York

Soirée – Flight


[1] Hispanics being targeted: This is a well-documented strategy among MLMs/pyramid-shaped schemes. See companies like Herbalife.

[1.1] If you’re interested in more of the specifics on this exploitation, I highly recommend BETTING ON ZERO. Catch it here if you have Netflix.

[2] Survivorship Bias is the well-known fallacy that if you find yourself successful, you may falsely start believing that anyone can be equally successful, neglecting everyone who tried just as hard and didn’t achieve the same things. This runs RAMPANT in pyramid selling.

[3] Only 3/1000 make any money in pyramid schemes after the costs of doing business are added in. Based on analyzing 350 MLMs.
See Dr. Jon Taylor’s brilliant work here:

PDF Document

[4] Regulatory Capture
Something that didn’t make it into the video explicitly but is worth mentioning. If you find yourself scratching your head, HOW ARE THESE THINGS STILL LEGAL?!, you should look no further than our lovely Federal Trade Commission who has been lobbied to for years and has kept never seriously acted on pyramid schemes except to slap them on the wrist. MLMs own an impressive amount of political power, EX: Amway has DIRECT ties to three (bush sr, clinton, bush jr) of the last 5 sitting presidents.

More About MLMs
The Dream Podcast –

Dr. Jon Taylor – The Case (for and) Against Multi-level Marketing

PDF Document

Robert Fitzpatrick – False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes

Robert FitzPatrick

Christine Richard –
Christine on QuoththeRaven

Are you actually talking about MLMs the entire time?
Yes. MLMs and product-driven pyramid schemes are basically a distinction without a difference. And the word “multi-level marketing is a bit misleading which is why I avoided it. It’s using terminology that was invented to obfuscate what is actually going on. The old word for MLMs was “pyramid selling.” You can imagine why that was abandoned. Even now, the word “multilevel marketing” is being distanced from, the new new word is “direct selling”. Look at the lobbying group Direct Selling Association who is heavily funded by MLMs. I couldn’t find the words Multi-Level Marketing anywhere on the website. All this to say, don’t let other people control the language of the discussion, otherwise you’ve lost half the battle. See my previous video on Industry Funded Research, where the gambling lobbying group calls themselves the National Center of Responsible “GAMING”. It’s the same trick being played.

Why does the video get so dark?
MLMs have an extremely predatory side to them that I wanted to explore. If you got upset or frustrated in this video, that is probably indicative that you having a working heart.


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