I read a story on this a while ago. It's called a matrix buying scheme if I remember right. It is a scam in that it's impossible for everyone to get the product they are paying for, and the various people offering these schemes are being investigated supposedly. The largest one has voluntarily quit the "business".
How it works is that you pay a low price for say, a tv and get a place in a queue (line). Say you're number 10 'cause you got lucky. It will take say, 50 people to pay enough money to buy the first tv, and person number 1 gets his delivered.
Now, another 50 people have to buy in for the second person to get his and so on. Pretty soon, there will be people who's only chance of getting their product is if a large percentage of the population buys in. And what happens to THEIR chances?
I'm too lazy to look it up but I think this called a Ponzi racket? The way they are able to be quasi-legal is that you are usualy buying some product from them, and in return, you are signed up for this opportunity as a bonus. In other words, this is offered for free, so they aren't breaking any laws. Of course, people are buying the product (which is often useless) just for the chance of getting a cheap tv or whatever.
In any case, stay away.
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