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11/13/08
11/13/08
11/14/08
11/13/08
11/13/08
This is a VOIP service, so they don't need to set up any infrastructure, making their service cheaper than many. As long as they can get new customers on board, they'll have a good source of income for a while. Once that well dries up, they could always branch out and provide other services.
11/13/08
11/13/08
It's not a pyramid. There's no reselling of services involved.
As I mentioned, when they gain market share and the initial well dries up, they could always branch out. Upon providing other services, they need not necessarily have it be a one-time fee deal.
11/14/08
A classic pyramid scheme is an investment opportunity that promises higher than usual returns, but that are not sustainable because the returns are paid out from future investors; a person invests $100 and is told that in six months they'll get $200 back. But when six months comes along the $200 is paid out from other investors who came in later. Without more and more people coming in (at least 2 for every 1 paid out) the whole thing collapses, usually after the original "investors" have already been paid out handsomely.
I'm not saying this is illegal or anything, but just that it relies on similar growth of their core services or a shift in their business plan. Otherwise the more they build their "lifetime" user base, the more money they'll lose in the long run and eventually they'll go out of business.