Scam or Not: How To Spot A Pyramid Scheme

If you have a Facebook account, you probably have experienced being flooded by posts about how to get rich fast accompanied by pictures of people with bundles of money and luxury cars. We all know that there's no such a thing as easy money. Even those who are into multi-level marketing are investing not just money but also time and effort to make it big.

I've been reading a lot about Emgoldex, Royale, SWA and other small networking /  multilevel businesses on the internet. A lot of negative feedback about these companies are all over the web. I have friends who invested in these companies and some of them are really earning. I'm a conservative investor and I prefer my money in time deposits and mutual funds even though they don't earn much. 

Someone shared this video on facebook and I feel the need to share.

I wanna know your thoughts. Drop me a line. :)

Update 12th June 2015

Amongst the companies who are into networking, EMGOLDEX is the most popular as of the moment. Just this morning, an article about EMGOLDEX has been posted at GulfNews.Com saying

When contacted by Gulf News, a DMCC spokesperson denied that the companies [Emgoldex and Gold and Silver Physical Metals KG] are registered with the government regulator of commodities trading.

“Emgoldex is not a DMCC-licensed company. DMCC has taken steps to prevent further misuse of our name.”