Pyramid schemes can be quite deceptive. They often lure people in with promises of quick and easy money, or in this case, items in credit of funds. However, the reality is that these schemes could be more sustainable and can cause financial harm to participants. It’s essential to be cautious and do thorough research before getting involved with any company that emphasizes recruitment over product sales. In a pyramid scheme, the main focus is recruitment rather than selling a legitimate product or service. Participants are usually required to make an initial investment or purchase a product to join the scheme. They are then encouraged to recruit more people into the scheme, promising them high returns and rewards for their efforts.

The pyramid structure is formed as each recruit is encouraged to recruit others, who recruit more people. The people at the top of the pyramid benefit the most, as they receive a portion of the payments made by the recruits, which could be the CEO or owner of Temu, benefiting from all the profit of all the customers joining Temu. However, as the pyramid grows, it becomes unsustainable because it relies solely on recruiting new members.

While listening to others talk about Temu, they consistently mention how they get free items, but the main reason they gain free items is by recruiting others to download the app. A couple of months ago, it was trendy for everyone to send Temu links around, so that is a factor of pyramid schemes, knowing they emphasize recruitment. Since they’re sending the link to download Temu to everyone they know or all their friends, it’s as if someone in a pyramid scheme is sending everyone a business card or a flier for them to join the scheme.

Another concerning factor about Temu is its slogan. “Shopping like a billionaire” is enjoyable, knowing that their prices are all mostly under $10. Cbc.ca explains how one thing that sets Temu apart from its competitors is its game-like shopping experience. New and existing users are frequently prompted to participate in flash sales and chance-based games like Spins to receive free items and coupons. This is fascinating to hear since Temu is doing something not seen before, with these games shown on the app for the customer to buy more, which is like gambling. Temu is involving gambling with shopping in their app, so adults and kids can both want to purchase stuff from their app.

Tunnelgist.com confirms how “The Temu app is a pyramid scheme that has been gaining popularity lately. It promises its users easy money by getting them to invest in the app and then convincing others to do the same. The problem is that the app doesn’t generate any revenue, so it’s not sustainable in the long run.” This determines how the Temu app is a pyramid scheme not only because of their recruitment but also because of their business and their profit. Since they don’t generate any revenue, the company/website cannot be sustainable in the future.