Why are pyramiding type of businesses so popular in the Philippines?

[between the buttons]

Facebook and almost all social networks are annoyingly spammed by people recruiting and posting referral links of their pyramiding type of business. Are people easily convinced of photos of other people posting pictures of themselves holding cash payments supposedly earned from the mentioned type of business.
*links to instead of links of

[clncarplz]

Because of the lure of "easy money".
It is a shame the the suckers lose all of their money.

[Patrick]

The Philippines is the land of corruption and lies....thats why

[Indy]

Thank you for pointing this out.
Recently I too have noticed the amazing number of people in y wife's family who have been sucked into this type of business and as one reply mentioned--the lure of easy money is probably to blame. A niece has invested everything she has in one such outfit. She went in boots and all believing the hype. She bought all the products to re sell as that is how this business runs, those who sign up have to stock up to on sell, trouble is, the products are rubbish, over priced and do not do what they are advertised to do. Get this---the niece bought sachets of --Coffee. Tiny , one serve packets that were marketed to her as if you sticky tape the sachets to electrical leads it will cut down electricity usage. Now--- my niece fell for that. And she is reasonably educated !!!!!! Wrap coffee around a cord to cut electricity usage?? My God, who could REALLY believe that could be true huh?
Anyway, she and a lot of others have been badly screwed by it all. One crowd says, invest P100 and be given P10-000 or invest P1000 and be given P one million.
WHO--in their right mind would think that could be true?
But for some reason , Filipinos are signing up and throwing away their hard earned cash on these filthy lies put out in glossy brochures.
That the PI Government is doing NOTHING to curb the outrageous lies marketed by these firms is disgusting.
Filipinos, an old Western saying is---
If it sounds TOO good to be true, it probably is a lie.
Please, walk away from these Shysters and Fixers, or you will lose everything.
EDIT
chmaaque---ALL these idiot companies MUST ask and ONLY accept investment.
Where the hell do you get off coming in saying--No Personal Investment?
They ALL work on signing up a distributor to buy products to on sell.
Where in that scenario is ---no personal investment?

[chmacqueen]

Because wages being so low and the promise of being your own boss with being able to make as much as you can sell with no personal investment needed. Its easy to fall into the scheme and for some it can work great if they are naturally a sales type of person who can think outside the box while most are NOT this. Why work for 100-150p for a 12 hour day when you could make that much in 1 sale is the idea.

Problem is to much competition with many of the products to high priced for the average.

Look at Avon's system here. Works great for some but a flaw many run into is they sell an item with Avon's 30 days to pay and the person who bought keeps saying *later* and doesn't have the money or cancels to late. Much of Avon's system ends up being for most just buying personal products and stuff for nearby close family.