Why Do So Many People Invest In Pyramid Scheme?

[Good-Person]

Pyramid schemes refer to a system where investors invest money and the people who run these pyramid schemes utilise the capital of other people in order to pay the investors. There are many people who are quite aware of this system. However, they still tend to invest in such schemes knowing that they might get scammed. So, why do people do this and invest money in such programs?

 

[Planbizzle]

Because big returns on investments are frequently promised, people are investing in pyramid schemes. Also, people can be persuaded to believe that they won't need to put in a lot of effort because they'll earn more income quickly and simply.

 

[Ernestnari]

It is because people don't respect the law of value. Pyramid schemes don't offer any value. And they promise you huge returns without doing anything. That's why people run and invest there.

 

[Kane]

That's because a lot of people want to become rich quickly. These platforms offer a scheme that will supposedly make you rich in no time, so people fall in this trap. They want a short cut road to success.

 

[tray591]

That is a very good question but I believe why this is been done is that people need to make money and they want to make fast money online as well that is why they keep invest in this platform

 

[Ernestnari]

The major sponsor for people investing in pyramid schemes is greed. I have never fallen prey to these sites before. That's because I try to be logical and not be greedy when I see those sites.

 

[Jonaville1]

Pyramid schemes refer to a system where investors invest money and the people who run these pyramid schemes utilise the capital of other people in order to pay the investors. There are many people who are quite aware of this system. However, they still tend to invest in such schemes knowing that they might get scammed. So, why do people do this and invest money in such programs?

This is because ethey know that they will get a lot of profit. People mostly invest in things that they are very much sure of the profit. It may be scam but they do not care.

 

[Grant]

The problem is that a lot of the time the people who are scammed are people down on their luck, trying to find a job, or any money they can get. As well, the people shilling the schemes are often very charismatic, and are good at painting a picture of assured investment being paid back. But usually that is not the case unless you're the one at the top.

All it is, is getting someone below you to do the job for you, and it keeps going down this pyramid until you have hundreds or more under you. All the while, the people at top reap the rewards, while the people at the bottom have to work a ton just to make it.

People invest because these people up top try to make them think they will earn a profit from your investment fast, and that's never usually the case.

The best suggestion I can give, is this. If it's too good to be true, it's likely not real. Nothing comes as easy as you'd think, especially when it comes to making money. Research something before you put any money into something. Even if you think it's fine, research it through and through. Make sure you check everything you can before you invest any of your hard earned money.

 

[Kennysplash]

A factor that contributes to that is greed. People don't want to do much anymore these days, but they seek easy money. So it is easy for them to fall into the hands of scammers.

 

[McIrx]

Reasons for investing in such ranges from hope to greed to bad habit. Their mentality is simple - once one person can make a substantial amount from the scheme, they can do likewise.

I had people who made serious amounts from the MMM scheme; I also heard of a lot who lost millions. So it's all about the mindset, the belief.

 

[Robert90]

Investments in pyramid schemes are made for a variety of reasons. Some people take part out of avarice in the hope of making rapid, irrational profits. Others are duped into believing they are enrolling in a reputable investing club or rewards scheme.

 

[Genie011]

This is more like a Ponzi scheme,they will start paying you nicely but after that they will run away with people's money,I don't involve myself in those kind of things because they're not just for me.

 

[Shigobad20201]

The pyramid scheme type of investment are the investments that uses another people's money to pay investors money by making sure the money is in circulation between the investors .

 

[eLdavis]

The truth of the matter is that many people invest in this simply because they want to make quick money with little to no effort. These pyramid schemes often promise juicy offers within a very short period of time, hence many are attracted to it.

 

[Riberet19]

This is because ethey know that they will get a lot of profit. People mostly invest in things that they are very much sure of the profit. It may be scam but they do not care.

I think the fact of this is because they are people who want to get rich quickly or are very greedy and also have little financial knowledge and how money works and how it is really invested, I think these people are the most likely to fall into this type of scams, because I believe that if a person has basic notions of finance and investment does not fall into such scams.

 

[Jonaville1]

I think the fact of this is because they are people who want to get rich quickly or are very greedy and also have little financial knowledge and how money works and how it is really invested, I think these people are the most likely to fall into this type of scams, because I believe that if a person has basic notions of finance and investment does not fall into such scams.

A lot of people want to get rich very quick but they should try to do things that are legit and not involving themselves in anything that has to do with Ponzi scheme so that they will not lose the little money they have

 

[Riberet19]

A lot of people want to get rich very quick but they should try to do things that are legit and not involving themselves in anything that has to do with Ponzi scheme so that they will not lose the little money they have

Yes, the fact of wanting to get rich quickly is the most frequent aspect of why they invest in these schemes, but I think one of the main reasons is also because of the lack of financial education in general, because a person who has general knowledge of economics and finance is more difficult that enter these schemes really

 

[Jonaville1]

Yes, the fact of wanting to get rich quickly is the most frequent aspect of why they invest in these schemes, but I think one of the main reasons is also because of the lack of financial education in general, because a person who has general knowledge of economics and finance is more difficult that enter these schemes really

The truth is that some of them do not lack financial education. A lot of them know so many things about financial education but think they are being greedy and that is why you will see them invest in pyramid schemes.

 

[Mayorla]

A lot of factors motivates many people to invest in Pyramid scheme. For me, I think the number one reason is Greed. Most people invest in Pyramid scheme because of the outrageous rewards involved without caring about the risks.

 

[Mostee501]

So many people invest in pyramid scheme because of lack of awareness, misleading promises, social pressure, emotional manipulation, lack of financial literacy amongst others.