# How do you identify a pyramid scheme? **URL:** \ **Category:** Factual Questions\ **Created:** [October 2, 2015, 1:19pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237 "2015-10-02T13:19:57Z")\ **Posts on this page:** 14\ **Page:** 1
**Author:** ![MmeRose](https://avatars.discourse-cdn.com/v4/letter/m/ee7513/32.png) [@MmeRose](https://boards.straightdope.com/u/MmeRose)\ **Post date:** [October 2, 2015, 1:19pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/1 "2015-10-02T13:19:57Z")
I’m burnt out at work and looking for a change, so I started looking into “nonclinical medical jobs”. I found a few organizations including the American Academy of Insurance Medicine ([AAIM.org](http://AAIM.org)). They say that you can work independently and can get enough work to make a living and it sounds ideal. The jobs are doing independent medical exams for workers comp and disability claims. AAIM has 2 conferences a year where they have courses and an exam to get qualified to join the academy and get job referrals. The conferences aren’t cheap ($600-800, I think) and involve travel, hotel etc. How do you know if it is a real opportunity or a pyramid scheme for the benefit of the founders and high-ups - like Amway? Does the fact that it’s “.org” mean it’s nonprofit or genuine? Thanks. ---
**Author:** ![casdave](https://avatars.discourse-cdn.com/v4/letter/c/c6cbf5/32.png) [@casdave](https://boards.straightdope.com/u/casdave)\ **Post date:** [October 2, 2015, 1:55pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/2 "2015-10-02T13:55:50Z")
Just do the obvious, try a websearch, put in something like \ \ I did a quick scan for [AAIM.ORG](http://AAIM.ORG) and got jack, I did get hits for [AAIMedicine.org](http://AAIMedicine.org) I am always suspicious of anyone who asks for money and puts up a weblink that looks very similar to another organisation, I wonder why. ---
**Author:** ![robert\_columbia](https://avatars.discourse-cdn.com/v4/letter/r/e79b87/32.png) [@robert\_columbia](https://boards.straightdope.com/u/robert_columbia)\ **Post date:** [October 2, 2015, 2:00pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/3 "2015-10-02T14:00:01Z")
Are you _required_ to attend their conferences and/or take their classes, or can you study for the exam on your own? Many certification organizations seem to be moving away from the competency certification model and toward a business model of selling overpriced coursework that everyone has to take. ---
**Author:** ![Hypno-Toad](https://avatars.discourse-cdn.com/v4/letter/h/b2d939/32.png) [@Hypno-Toad](https://boards.straightdope.com/u/Hypno-Toad)\ **Post date:** [October 2, 2015, 2:04pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/4 "2015-10-02T14:04:03Z")
Well, a pyramid scheme generally focuses more on recruitment and making money off of ones own sub-pyramid than on selling product yourself. When the sellers are pushing the recruitment more than the sales, it’s generally going to be a pyramid or MLM enterprise. [Here’s a resource.](http://www.crimes-of-persuasion.com/Crimes/Delivered/pyramids.htm) ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [October 2, 2015, 2:09pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/5 "2015-10-02T14:09:20Z")
One question; why is the American Academy of Insurance Medicine based in Ottawa? ---
**Author:** ![Hypno-Toad](https://avatars.discourse-cdn.com/v4/letter/h/b2d939/32.png) [@Hypno-Toad](https://boards.straightdope.com/u/Hypno-Toad)\ **Post date:** [October 2, 2015, 2:21pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/6 "2015-10-02T14:21:15Z")
> [@Dewey\_Finn](#): > > One question; why is the American Academy of Insurance Medicine based in Ottawa? Because of the awesome Canadian health care system, eh. ---
**Author:** ![gnoitall](https://avatars.discourse-cdn.com/v4/letter/g/bb73d2/32.png) [@gnoitall](https://boards.straightdope.com/u/gnoitall)\ **Post date:** [October 2, 2015, 2:21pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/7 "2015-10-02T14:21:25Z")
> [@Dewey\_Finn](#): > > One question; why is the American Academy of Insurance Medicine based in Ottawa? What? Canada is no longer in North America? :eek: Of course, 'Murcans might get fooled. Maybe that’d be the intent. Or maybe that’d just be Canadians being technically right. Which is the best kind of right.😃 ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [October 2, 2015, 2:24pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/8 "2015-10-02T14:24:22Z")
One way to find out if this organization is legitimate; contact people who are actually in the business of “insurance medicine” and ask them if it’s a legitimate qualification. Or check what qualifications they have, or they require of job applicants. ---
**Author:** ![MmeRose](https://avatars.discourse-cdn.com/v4/letter/m/ee7513/32.png) [@MmeRose](https://boards.straightdope.com/u/MmeRose)\ **Post date:** [October 2, 2015, 2:32pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/9 "2015-10-02T14:32:52Z")
Aargh, I think I typed the name wrong. Sorry, I have a lot of stress right now. There are several of these places and I’ve contacted a few. The most recent one was [ABIME.org](http://ABIME.org). It’s in West Virginia (the post about Ottawa was what made me realize). In any case, I will follow advice above, and thank you. Hypno-toad, great website! ---
**Author:** ![septimus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/septimus/32/410_2.png) [@septimus](https://boards.straightdope.com/u/septimus)\ **Post date:** [October 2, 2015, 3:08pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/10 "2015-10-02T15:08:08Z")
> [@gnoitall](#): > > What? Canada is no longer in North America? :eek: We’ve had Venn Diagrams for the U.K. England \< Great Britain \< U.K. \< Commonwealth Perhaps we need one for America America \< North America \< The Americas 😃 ---
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [October 2, 2015, 3:13pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/11 "2015-10-02T15:13:24Z")
> [@septimus](#): > > We’ve had Venn Diagrams for the U.K. > England \< Great Britain \< U.K. \< Commonwealth > Perhaps we need one for America > America \< North America \< The Americas > > 😃 You forgot one step on the last one United States of America \< America \< North America \< The Americas \< United States of America ---
**Author:** ![Hari\_Seldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hari_seldon/32/5173_2.png) [@Hari\_Seldon](https://boards.straightdope.com/u/Hari_Seldon)\ **Post date:** [October 2, 2015, 3:51pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/12 "2015-10-02T15:51:05Z")
Unless they say you make money by recruiting more victims, it is not a pyramid scheme. This is not to say it can’t be just an ordinary scam. Take your money, promise you jobs that turn out to be rare or otherwise hard to get. Think about all these for-profit “universities” out there whose main business model seems to be to absorb Pell grants. Maybe you could start by asking them who hires their graduates and then contacting one of them and asking point-blank what are you chances of getting hired if you get a certificate. Of course, they could be in on the scam. But if repeated efforts don’t turn up a company that has a track record, I would be wary. I realize this makes it hard for even a legitimate such school to start up, but them’s the breaks. ---
**Author:** ![Gary\_T](https://avatars.discourse-cdn.com/v4/letter/g/3ec8ea/32.png) [@Gary\_T](https://boards.straightdope.com/u/Gary_T)\ **Post date:** [October 2, 2015, 3:53pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/13 "2015-10-02T15:53:04Z")
> [@Saint\_Cad](#): > > You forgot one step on the last one > United States of America \< America \< North America \< The Americas \< United States of America Where it’s written America \< North America it’s clear that America = U.S.A. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [October 2, 2015, 3:56pm UTC](https://boards.straightdope.com/t/how-do-you-identify-a-pyramid-scheme/733237/14 "2015-10-02T15:56:20Z")
> [@Hypno-Toad](#): > > > [@Dewey\_Finn](#): > > > > One question; why is the American Academy of Insurance Medicine based in Ottawa? > > Because of the awesome Canadian health care system, eh. Canada’s health insurance industry is _completely_ different from America’s. So if the AAIM is hiring locals, they’re unlikely to be familiar with the US health insurance industry. I’m not saying Canadians aren’t North Americans. It just struck me as suspicious.