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How to spot a pyramid scheme - Stacie Bosley

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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.

Pyramid schemes are often presented by a friend, family member or acquaintance. What are ways that you could respond if you receive an offer from someone you trust but aren’t sure whether the offer is legal or a good investment of your time, money and effort?

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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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