Pyramid Schemes vs. Referral Based Marketing September 01, 2005 10:03 AM
In response to a question in the FAQ:
"Is this a pyramid? What matters is not the structure (pyramids are everywhere), but whether the pyramid is legal or not. There are many resources to determine whether a company operates an illegal ‘scheme’ or has a legitimate business. General Motors, the government, the church, and virtually everything else operates in a pyramid structure. Nearly every large organization is structured like a pyramid, since the pyramid is mathematically, socially, and architecturally the strongest structure known to man. GM has one Chairman/CEO, some Board members, some executive management, a few more in upper management, a few more than that in middle management, and so on, down to the workers on the line. Governments have one President, a Cabinet, their senior staff, junior staffers, and soon. The Catholic church has one pope, then Cardinals, Bishops, etc.
What to look for is whether the company actually sells products & services, or if they are only marketing ‘opportunity.’ An illegal scheme may be selling the chance to earn a large payday if you recruit enough others to ‘join’ the organization – but no products or services have been sold to the end user. Krystal Planet is not an illegal pyramid, as our focus is on marketing and selling TRCs (or green tags) and a variety of energy savings and renewable energy products. Each Green Tag has its own serial number (they expire in 18 months from the time they are produced) and cannot be sold more than once. Krystal Planet uses an independent auditing firm to issue an audit report at the end of every calendar year tracking the serial number of every kilowatt hour worth of Green Tags sold by Krystal Planet. This audit statement is generally available by March 31st of the following calendar year and is available upon request. Furthermore, every KP customer receives a monthly statement (electronic or in paper) showing the serial number, kilowatt hours, and source of every Green Tag product sold. Finally, Krystal Planet guarantees in writing (in the terms and conditions) that every FutureWind Green Tag sold will result in 1,000 kWh of ‘green energy’ injected into the national transmission grid, either at one of Krystal Planet’s wind energy facilities or that of a 3rd party wind energy facility if for any reason Krystal Planet does not build enough wind energy facilities quickly enough (see the FutureWind brochure for more information)."
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