Here we go again. Viktor of Desteni has posted
Difference Between a Pyramid Scheme and Desteni I Process
http://desteni.co.za/forum/viewtopic.php?f=300&t=21539and offers just this brief quote from European law:
"14. Establishing, operating or promoting a pyramid promotional scheme where a consumer gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products."
Viktor writes:
"See – in the Desteni I Process we have a product, which is education – and in order to make an income from the Desteni I Process, you must consume and sell this product. Thus – the compensation isn’t derived solely from the introduction of other consumers – but through the LEGAL action of selling and buying a product.
A pyramid scheme on the other hand has no product of inherent value. It’s only based upon the transition of money – wherein there is all the time a need for new people to join the scheme, in order to cover up the expected profits of those already in the scheme."
Compensation in Desteni I Process IS derived solely from introduction of others. As I already said, it is not selling a product or a service.
'Desteni I Process' has no "inherent value" as a product or service. It is not recognized by any state or legal body as "education". The very fact that in order to make money from it, as Viktor admits, you must take part in the scheme -- is another reason why it is a pyramid scheme.
Viktor writes:
"It’s no different than the supermarket you each day go shopping at – you give the supermarket money and you get food in return. The supermarket mustn’t increase its customer base in order to survive; as it has food that it sells which will sustain it’s business -- very simple."
Food products are actual, physical items sold in direct exchange for money. When you buy from the supermarket it is not on the basis that you must encourage others to buy. You just choose, pay for the goods and leave.
As it says in Wikipedia:
"
A pyramid scheme is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public."
Desteni I Process is promising payment, services or ideals in the form of "training", not a "product".Viktor calls the Desteni I Process Multi-Level Marketing, but pyramid schemes are a form of MLM, and MLM is in any case legally dubious.
[
www.fraudsandscams.com] ...
"
A Pyramid Scheme is a multi-level marketing (MLM) program that cannot support itself because earning money, and/or advancing within the system depends on recruiting other people into the operation, rather than selling a product or providing a service."