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2014년 10월 9일 목요일

PE 10/8 Is It a Home Business or a Pyramid Scheme?

It’s the compensation plan for this new business I’m starting – a vitamin company. It looks like the sky is the limit in terms of earnings potential! Here’s the catalogue.
* the sky is the limit: the possibilities are great
ex> When it comes to options for your new car, the sky’s the limit.
ex> If you have a lot of money, the sky is the limit when planning your vacation.

Yeah, like a Ponzi scheme. Is it one of those?
* Ponzi scheme: a form of fraud in which the first investors receive payments from later investors, who invariably lose everything
ex> Although the business appeared to be a Ponzi scheme at first glance, it had very strict rules for pulling out your investment.

My uncle Rick was in one of these companies for about three months and he said it was all a scam. He didn’t make any money at all. In fact, he blew about $5,000 on the products.
* blow: to spend without caution
= lost; waste; throw away
ex> Bill blew his inheritance on a year of partying and first-class travel.

See the problem? Rick wanted a get-rich-quick scheme and when it didn’t magically happen, Rick made the company the scapegoat for his failure. It only works if you work.
* get-rich-quick scheme: a plan that promises a high rate of return for little or no investment
ex> Rex will buy into every get-rich-quick scheme that comes along.
ex> The business may look like a get-rich-quick scheme, but it takes more work than a traditional job.
* scapegoat: a person or organization that is wrongly blamed for a problem

ex> The president was made a scapegoat for the poor introduction of the new healthcare program.

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