Pyramid schemes have existed for decades with the system of of operation being the same in each. The only difference in these pyramid schemes lies in the name and the finances involved. Despite Kenyans having suffered losses in pyramid schemes before, they still engage in this risky adventures.
Here is the problem with pyramid schemes. At their initial stages they are organized in a manner that is very suggestive and attractive to customers. It is also very apparent that the first customers or members of the scheme tend to make a handsome amount of money.
The main source of income for these pyramid schemes is through referrals where one earns money by inviting people into the business.. One then makes a commission for every person they invite and even a second person referral.
The latest pyramid schemes in the market that have captured the attention of Kenyans are Earnsmart, Aim Global and Crowd 1.
Earnsmart focuses on the low income earners with an entry fee of Ksh 500,you then get Ksh 200 for the first person referral and slightly less for the when a person you have referred invites another.
Crowd 1 on the other hand is much more elitist focusing on the upper class of society. It costs one Ksh 12,000 to join the pyramid. One is then required to invite 4 people into the scheme within 30 days so as to earn Ksh 14,000.
Alliance in Motion Global operates on a similar system as the first two. Popularly known as AIM Global, the scheme requires one to buy a package worth Ksh 23,000 to start with. The ‘sponsor’ who invited you then gets a commission of that amount.
All pyramid schemes end with people losing money as all people who are interested in the scheme will have joined. Once no new people are interested in joining, those in the lower end of the pyramid scheme start losing money.
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