The author recounts their experience of joining a pyramid scheme in college, which masqueraded as a multi-level marketing opportunity to sell premium organic instant coffee. They were lured in by promises of easy part-time work, high earnings, and extravagant rewards, but eventually realized they had fallen victim to a scam. The scheme relied on recruiting new members, who would buy inventory and sell it to others, while the true beneficiaries were the higher-level recruiters who made money from the initial investment. The author failed to sell the coffee and was left with a large inventory, while their recruiters profited from their initial purchase. The author warns that pyramid schemes are still prevalent, especially during times of economic uncertainty, and advises people to be cautious and make informed decisions to avoid falling prey to similar scams.
1. The narrator joined a pyramid scheme in college.
2. Pyramid schemes are business structures that revolve around recruiting and investing in more participants.
3. Commissions in pyramid schemes are often partially credited to earlier recruiters.
4. Pyramid schemes are typically designed so that those at the bottom levels do not profit.
5. Pyramid schemes are illegal in many places.
6. The narrator was invited to join a job listing by a friend.
7. The job did not require prior experience or education.
8. The narrator attended a presentation for the job in a sketchy neighborhood.
9. The presentation was about a premium organic instant coffee product.
10. The presenters talked about the benefits of being involved in the business, such as earning a full-time income for part-time work.
11. The presenters offered a BMW to recruits who worked hard and reached a certain quota of recruitment.
12. The narrator tried some of the coffee samples during the presentation.
13. The presenters defended themselves against accusations of being a pyramid scheme.
14. Recruits had to buy coffee inventory from their recruiters.
15. There were three levels of packages: bronze, silver, and gold.
16. The narrator chose the gold package.
17. Recruits were tasked with selling the product and could also find their own recruits to sell the coffee for them.
18. The narrator determined their own selling price for the coffee.
19. The narrator started selling the coffee to friends and family.
20. The narrator eventually opened up their own coffee shop and recruited a group of people to sell the coffee.
21. The narrator did not actually succeed in selling the coffee and was stuck with a large inventory.
22. The narrator realized they had zero marketing skills.
23. The only people who benefited from the scheme were the recruiters.