BIG CRUMBS: Pyramid Scheme? Scam?

By pegasusmail

BigCrumbs is the popular program that allows you to get cash back every time you or any your friends (up to five generations deep) shop at eBay or over 350+ online vendors.

Occasionally people ask me if BigCrumbs is a pyramid scheme or an outright scam. And a lot of BigCrumbs Members get the same question when referring their friends.

Addressing this is HUGELY important. What Big Crumbs doing is new and sounds too good to be true when people don’t understand the model (or what a real pyramid is). Couple that with the fact that BigCrumbs believes it’s only fair to compensate its Members for multiple generations of referrals, and some people jump to the conclusion that BC must be a pyramid.

So, education is key. Here’s a brief link from the Office of The Attorney General in Georgia (where Big Crumbs is incorporated):

Pyramid Schemes 

Note the key phrases, “[Pyramid schemes] seek to take your money” and “the perpetrator solicits money from several people by selling them a ‘membership’ or franchise; however, the members make money only by selling similar ‘memberships’ to others”.

So people’s concern with BigCrumbs shows that there’s a fundamental misunderstanding of what a pyramid is. The spirit of a pyramid is such that the people joining PAY their money with the expectation that they’ll make it back and then some. But, in truth, much of this money goes to paying the people “above” them. So, the new guy/gal must *sell* memberships to others in order to recoup their investment. It’s a self-serving system and somebody’s going to be left holding the bag (an empty bag).

Obviously, with BigCrumbs, there’s NO MONEY PAID! — so that eliminates that issue from the equation. Their membership is free and they offer a real service that gives you cash back when you shop. There’s NOTHING to lose with BigCrumbs.

They simply have a referral program — plain and simple (but it’s a powerful program). It’s a way to be compensated for telling people how they can earn cash back at eBay and other places where they are already shopping. Plenty of sites have referral programs. The difference is that they pay members ONE TIME and that’s it.

But BigCrumbs says, “Is that fair?” If that referred member is shopping/saving through BigCrumbs and thereby helping BigCrumbs meet their goals for years to come, shouldn’t the referrer continue to be compensated? Also, if Sally refers Bob and Bob refers Joe, then isn’t Sally at least indirectly responsible for bringing Joe aboard? Shouldn’t she be compensated?

It’s a bit ironic that BigCrumbs’ sense of fairness in structuring the program is exactly what causes concern for some people. If they just said “thanks for the referral” and gave them a dollar, they’d say “oh yeah, that’s legit!”. It’s really funny in a way.

But, it’s not their fault. Again, BigCrumbs represents a new concept, so I’d just like to make the above facts available to everyone.

Click here to check out BigCrumbs and see the difference yourself:

Tags: , , , , , , , , , , , , , , , , , ,

Leave a Reply