Why do people still fall for pyramid schemes or MLM’s?
the true answer is that they are blinded by greed. look for example at all the people who gave money to bernie madoff. Years before he was 'outed' by his son, a reporter at Barron's, a major financial paper, wrote an article questioning madoffs returns ("Those returns have been so consistent that…
The Short Answer
the true answer is that they are blinded by greed. look for example at all the people who gave money to bernie madoff. Years before he was 'outed' by his son, a reporter at Barron's, a major financial paper, wrote an article questioning madoffs returns ("Those returns have been so consistent that some on the Street have begun speculating that Madoff's market-making operation subsidizes and smooths his hedge-fund returns."). Anyone who was interested could have found it. There were also other warning signs, such as big firms that would not invest with him. Yet very wealthy people, presumably with money managers, all ignored these signs. Why? Simple greed, for the most part. [barrons article from 2001](_URL_0_) – he was arrested in 2008. [another link if that's paywalled, although this might be too.](_URL_1_)
Analysis
Key Concepts: Returns, greed, people
This explanation focuses on returns, greed, people and spans 132 words across 10 sentences. At 76% above the average Technology explanation (75 words), this is one of the more thorough answers in this category, reflecting the complexity of the underlying question.
What This Answer Covers
The explanation opens with: “the true answer is that they are blinded by greed.” It then elaborates with concrete examples, ultimately building toward a complete picture across 10 connected points.
How This Compares in Technology
Ranked #69 of 500 Technology questions by answer depth (top 15%). This places it in the comprehensive tier — the top quarter of most thoroughly answered questions. Questions at this depth typically involve multi-faceted topics requiring nuanced explanation.
Frequently Asked Questions
Is there a simple explanation for why people still fall for pyramid schemes or mlm's?
the true answer is that they are blinded by greed. look for example at all the people who gave money to bernie madoff. Years before he was 'outed' by his son, a reporter at Barron's, a major financial paper, wrote an article questioning madoffs…
How detailed is this explanation compared to similar Technology questions?
This is one of the most thorough answer at 132 words, ranked #69 of 500 Technology questions by depth. The key concepts covered are returns, greed, people.
What approach does this answer take to explain people still fall for pyramid schemes or mlm's?
The explanation uses concrete examples and contrasting perspectives across 132 words. It is categorized under Technology and addresses the question through 2 analytical lenses.