Verve Energy Drink: A Pyramid Scheme?
In the last few years, Verve Energy Drink has been trying to make its way into the lives of high school and college students. People sell it and try to get other people to sell it, but the main problem with it is people are considering it a pyramid scheme. A pyramid scheme is a type of illegal investment in the US where people have to recruit more people to sell their product, and the higher up you are in the pyramid the more money you get. The emphasis is put on recruiting people rather than actually selling, though. So to be a part of Verve, one must pay $500 to join, and must recruit more people in the first month. If they don't, they have to come up with more money. People are lured into this trap because of what they are promised. They are promised great money to be able to afford fancy cars within a short span of time, but the amount of people that actually get that is very small. For 75% of participants, their annual income is under $1327. Many people quit within a few months because they lose so much money, but even then you have to pay to get out. To me this sounds like a trap and a way to get desperate kids' money, but does this actually seem like a pyramid scheme? And why should it or should it not be legal? Would you join this given the opportunity? Full article: http://nypost.com/2013/09/29/energy-drinks-college-push-raising-pyramid-alarms/