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How to spot a pyramid scheme - Stacie Bosley

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TEDEd Animation

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In 2004, a nutrition company offered a life-changing opportunity to earn a full-time income for part-time work. There were only two steps to get started: purchase a $500 kit and recruit two more members. By 2013, the company was making $200 million. There was just one problem -- the vast majority of members earned less than they paid in. Stacie Bosley explains what a pyramid scheme is and how to spot one.

What is one identifiable way that a pyramid scheme is different from a Ponzi scheme?

About TED-Ed Animations

TED-Ed Animations feature the words and ideas of educators brought to life by professional animators. Are you an educator or animator interested in creating a TED-Ed Animation? Nominate yourself here »

Meet The Creators

  • Educator Stacie Bosley
  • Director Will Mackenzie, Kat Gusarova
  • Narrator Bethany Cutmore-Scott
  • Animator Will Mackenzie, Kat Gusarova
  • Producer The Animation Workshop
  • Music Matthew Reid
  • Director of Production Gerta Xhelo
  • Editorial Producer Alex Rosenthal
  • Associate Producer Bethany Cutmore-Scott
  • Associate Editorial Producer Elizabeth Cox
  • Script Editor Alex Gendler
  • Fact-Checker Francisco Diez

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