Crimes of persuasion: Pyramids

Here are some quotes from crimes-of-persuasion.com about Illegal Pyramid Selling Schemes:

• They say you will have to do "little or no work because the people below you will". You should be aware that the actual business of sales and supervision is hard work. So if everyone is doing little or no work, how successful can a venture be?

• This lack of actual retail sales may be hard to determine as many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public.

• According to Jon M. Taylor of www.pyramidschemealert.org the suggested retail prices for MLM products are almost always too high to be competitive because huge margins have to be built in to allow for commissions to be paid to down-line distributors for item sales without compromising the company's overly generous profits.
  
  
• This need to avoid retail competition is achieved by the marketing of unique or miraculous new products which are unavailable elsewhere or presented as cutting edge technology accessible only to those with the vision to appreciate its benefits to humanity or the American Way.
  
  
• Most pyramid schemes seem intent on exploiting people with limited means and limited knowledge of business such as individuals who have little experience in direct sales, distributorships, or franchise enterprises or who have limited money or credit with which to establish their own businesses.
  
  
• Many victims of these scams sell first to their friends. When the supposed money-making opportunity goes belly up, most lose not only their money — but also their friends.
  
  
• They're sold to investors with the assurance that they are perfectly legal, approved by the IRS or a CPA, and that they are definitely "not" a pyramid scheme.
  
  
• Pyramid promoters are masters of group psychology. At recruiting meetings they create a frenzied, enthusiastic atmosphere where group pressure and promises of easy money play upon people's greed and fear of missing out on a good deal. It is difficult to resist this kind of appeal unless you recognize that the scheme is rigged against you.
  

Well, I can quote them all day. A good read. I will end it on this note:

Do you know a legal MLM that does that?
Similarities listed here are scary, or none?

You answer.