By now many Trinbagonians would have been approached by an Organo Gold representative or heard of this coffee distribution programme that offers exorbitant returns with little or no risk to participants.The programme is predicated on participants becoming distributors of Organo Gold Coffee products; but more importantly participation in the programme emphasizes the recruitment of other distributors so as to expand your commission potential.
Sadly the Organo Gold programme being offered in Trinidad & Tobago displays all the classic hallmarks of a pyramid scheme. A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.
In particular persons should be sceptical of these programmes especially when they have the following characteristics:
1. Emphasis on recruiting. If a programme primarily focuses on recruiting others to join the program for a fee, it is likely a pyramid scheme. You should therefore be sceptical if you will receive more compensation for recruiting others than for product sales.
2. Promises of High Returns in a Short Time. Interested persons should be weary of promises of exponential returns and get rich quick claims. High returns and fast cash in membership programme may suggest that commissions are being paid out of money from new recruits rather than revenue generated from product sales.
3. Easy money or passive income. Be wary if you are offered compensation in exchange for little work such as signing up interested persons, marketing or recruiting others.
4. Buy-in required. You should be sceptical when you are required to pay to participate in the programme especially when it represents a significant upfront sum.
5. Extreme caution should be exercised when a complex commission structure is applied. You should be concerned unless commissions are based on products or services that you or your recruits sell to people outside the programme. If you do not fully understand how you will be compensated, be cautious.
6. No genuine product or service focus, over priced product offerings and no demonstrated revenue from retail sales. Only anecdotal evidence and name dropping provided to substantiate potential returns.
The universal principle remains" there is no free lunch" when something is too good to be true it usually is.....