Pyramid scheme: Difference between revisions

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People in the upper layers of the pyramid typically profit, while those in the lower layers typically lose money. Since most of the members in the scheme are at the bottom, most participants will not make any money. In particular, when the scheme collapses, most members will be in the bottom layers and thus will not have any opportunity to profit from the scheme; still, they will have already paid to join. Therefore, a pyramid scheme is characterized by a few people (including the creators of the scheme) making large amounts of money, while subsequent members lose money. For this reason, they are considered [[scams]].<ref>{{Cite web|url=https://www.scamwatch.gov.au/types-of-scams/jobs-employment/pyramid-schemes|title=Pyramid schemes|first=Australian Competition and Consumer|last=Commission|date=May 14, 2015|website=Australian Competition and Consumer Commission}}</ref>
 
/!,=== The "eight ball" model ===
[[File:Airplane game.svg|thumb|The "eight-ball" model contains a total of fifteen members. Note that in an [[arithmetic progression]] 1 + 2 + 3 + 4 + 5 = 15. The pyramid scheme in the picture in contrast is a [[geometric progression]] 1 + 2 + 4 + 8 = 15.]]