There are so many Pyramid Schemes out there today that it's hard to know which ones might work or will not. Always be on the look out for things that seem "too good to be true" because they probably are. For example, here is a common Pyramid Scheme that has been going around for a long time:

Invest in one another! There is not cost to start up. Simply send $1 to each of the six people listed on the sheet, then reprint the sheet after taking the number one person off and placing your name in the sixth slot. Then send this to as many people as you can, the more people you send it to the more income potential you can expect.

Whenever you see things like this, the first thing you should ask yourself is this: How much will it actually cost me to do this? Most people don't think about things thoroughly before jumping into them. The most important thing is to look at the input you will be placing in the project versus the output of what will come from it. In the previous scenario before, you would need to figure in the cost of stamps, envelopes, paper, ink, and purchasing addresses to send the letters to. It's very easy to overlook things even as simple as that.

Lets say that you chose to send out the above Pyramid Scheme to 200 people. The entire letter consists of six pages, which includes instructions on what to do for the next recipient, testimonials of people who have tried it and proved it works, and of course the page with the list of names of people you have to send money to. After buying the list of names to address your envelopes, the postage, and the supplies, you're looking at costs around $200. And this wasn't supposed to cost anything remember? Sure you're not paying someone to get started but it IS costing you money to do it, and most of the Pyramid Schemes out there work the same way.

Don't invest time and money into a project that will not pay out for your valuable time and effort put into it. Anything and everything you do should be done with this principle in mind: You should only do something up to the point where marginal benefit equals marginal cost. In other words, only continue doing something up to the point where it is no longer beneficial to you. If you're sending out 10 letters or 200, you should be able to see the benefit quickly and it should make a profit, not just a return on the money you spent preparing the project. If you're only taking back the money you put into the project, then you can count that as a loss!

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Diego Norte
520 C North Main Street, Heber City, Utah 84032
http://www.DiegoNorte.com