Sustainability of pyramid scheme

  • Context: MHB 
  • Thread starter Thread starter Ken Somerville
  • Start date Start date
  • Tags Tags
    Pyramid
Click For Summary
SUMMARY

The discussion centers on the sustainability of a pyramid scheme structured as a 2x2 Forced Rotator Matrix, requiring a buy-in of $300 per position. Each apex position re-enters the Level 1 board after leaving, perpetuating the cycle and generating profits for participants. The model raises questions about its long-term viability and potential points of failure as the process accelerates. Participants are encouraged to analyze the mathematical implications of this structure to assess its sustainability.

PREREQUISITES
  • Understanding of pyramid scheme mechanics
  • Familiarity with affiliate marketing structures
  • Basic knowledge of business mathematics
  • Awareness of legal considerations surrounding pyramid schemes
NEXT STEPS
  • Research the mathematical models used in pyramid schemes
  • Explore the legal frameworks governing affiliate marketing
  • Learn about risk assessment in multi-level marketing (MLM) schemes
  • Investigate case studies of failed pyramid schemes for insights
USEFUL FOR

This discussion is beneficial for entrepreneurs, affiliate marketers, financial analysts, and anyone evaluating the risks and sustainability of multi-level marketing structures.

Ken Somerville
Messages
1
Reaction score
0
I’m about to get involved with a new affiliate program,
before I market this I want to know that it is going to work.

Pyramid (yes, it is legal; there is a product,
merchant accounts used, taxes will have to be paid).

2x2 Forced Rotator Matrix with an Automatic Re-Entry at each level.

7 Positions on Board (only four available to be filled at a one time buy-in of \$300.00 ea).

As the #1 (apex) position leaves that board, they will be re-entered back onto Level 1 board for \$300.00 (taken out of the profits earned), it now looks for its’ sponsor, realigns itself again on its’ sponsor’s board, and continues to repeat the process over and over again to infinity.

As the process speeds up, and moves from daily to hourly, by minutes, by seconds, etc. Is this sustainable? At what point would this falter, or does it?

O Pay position \$1200.00-\$300. (auto re-buy done by computer).
O O Middle positions
O O O O Bottom positions to fill at \$300.00 ea

Thanks for your help. Ken
 
Mathematics news on Phys.org
Re: Hello! I need help with a mathematical query. Please and Thank You

Hello and welcome to MHB, Ken. :D

I have moved your topic to our Business Mathematics sub-forum, as it seems to be a better fit than Analysis.

Typically, responses are posted within a topic, not emailed, and so I have removed your email address from public view just so that it does not potentially fall into the wrong hands.
 

Similar threads

  • · Replies 19 ·
Replies
19
Views
8K
  • · Replies 13 ·
Replies
13
Views
5K
  • · Replies 65 ·
3
Replies
65
Views
11K