Career & Finance Fridays

“Get-rich-quick schemes are for the lazy & unambitious. Respect your dreams enough to pay the full price for them.” ― Steve Maraboli

If you’ve spent any time on the internet, you’re bound to have encountered the “get rich quick schemes” plastered across pop-ups, social media posts and sponsored SERPs. Often pedaled by self-proclaimed entrepreneurs with an undeniable whiff of slime, these miracle strategies promise the world at the price of a button. But are they really too good to be true? Don’t the best things in life come free? Read on as we discover why get rich quick schemes don’t work and how to evade their allures.

What are get rich quick schemes?

First things first, what are get rich quick schemes? According to the Collins dictionary, “a scheme that promises to make a person extremely wealthy over a short period of time, often with little effort and no risk.” For the literary scholars among us, it’s a bit of a Goethe/Faust affair.

You sell your soul for immediate riches, but the cost is beyond what you initially gain.

Your most common “get-rich-quick” scheme profile ranges from multi-level marketing (MLM) opportunities to full-blown cryptocurrency plots and pyramid schemes. You can spot a get rich quick scheme by these three features:

Anecdotal success: Stories about incredible turnover with a near 100% success rate are typical.

Urgency: Peddlers of get rich quick schemes will create pressure to act before the opportunity passes.

Minimal input for maximum output: Somehow you’ll be promised the world for a proportionally tiny investment of time, money and effort.

Famous “get-rich-quick” schemes

Some “get-rich-quick” schemes have gone down in history. Whether it’s Frank Abagnale Jr.’s fake-cheque escapade in “Catch Me If You Can” or the subprime mortgages that caused the 2008 financial crisis, these enterprises can have gargantuan impacts. Here are the most famous examples of get rich quick schemes which are commonplace in 2025.

Multi-level marketing (MLM)

MLMs are called pyramid schemes in their most toxic form. The idea is you pay in and recruit new investors to do the same. You get your money back from these new investors plus extras from whoever they bring in. It’s technically legal, but most of the time new participants don’t make money while the ones at the top of the pyramid do. This can often be one of those “get rich” scams that you should avoid like the plague.

Cryptocurrency hype

Is crypto a get rich quick scheme? It certainly has all the trademarks. The problem is the market’s volatility. Cryptocurrencies looked as though they were going to take over the world, but the failures of countless “altcoins” and NFTs is evidence that this investment is not a wise one.

Day trading

Perhaps the most common scheme for wannabe wolves-of-wall-street, day trading is the amateur buying and selling of stocks. Unfortunately day traders don’t have access to the same resources as real traders, which means the risk is substantially greater. Quick wins often cover up long-term losses. So this may not be the money making scheme you think it is.

Do get rich quick schemes work?

Occasionally they do. Most of the time they don’t. Here’s why:

Unsustainable strategy: Authentic wealth creation relies on consistent effort, sustainable methods, and long-term investment strategies. In contrast, get-rich-quick schemes neglect these core principles, providing no lasting value or viable business framework.

Excessive risk: High potential returns are often paired with significant risks, leading many individuals to lose money instead of profiting. This is especially common with speculative ventures such as penny stocks or unregulated cryptocurrencies.

Questionable legality and ethics: Numerous get-rich-quick schemes function in ambiguous legal zones or are outright fraudulent. These often involve dishonest tactics that can result in legal issues or financial setbacks.

Are get rich quick schemes illegal​?

There’s no simple answer to this. Get-rich-quick schemes aren’t illegal in and of themselves, but many are scams. Fortunately there are laws in place to protect customers. Anything promoting a product on social media is now legally obliged to attach an ad disclaimer. False claims are also penalized as part of the Truth in Advertising Act.

Do be wary of anything that looks like multi-level marketing. Even that friend-of-a-friend is probably getting a commission off you. MLMs aren’t illegal if they’re focused on selling products. If they purely monetize through recruitment, then they are. That’s what we call a pyramid scheme. Participants make money by recruiting others to pay an entry fee. You can also call this a Ponzi scheme

Bernie Madoff ran one of the largest Ponzi schemes in history.

The most famous Ponzi scheme is that of Bernie Madoff. Kicking operations off in the early 1990s, Madoff promised consistent returns to investors, which he did supply up until 2008. But it was all money from new investors. The financial crisis caused participants in the scheme to withdraw their money and the whole thing went haywire. Madoff’s sons reported him to the authorities and he was locked up. The total amount of fraudulent money he moved? $64.8 billion.

Are there any real get rich quick schemes?

We’re not here to push negativity, only truth. With that in mind, here are three get rich quick schemes that can bring you sizeable wealth if done properly:

Investing in land

Land is a smart investment of your cash. If you invest early in areas that may be focuses for infrastructure projects in the future, you’ll see the value of your purchase shoot up. To make the right decisions, you need to be well-informed and strategic. But the benefits of this kind of enterprise are huge.

Investing in IPOs

IPO stands for initial public offering. This is when a company launches its stocks, meaning you can buy shares. IPOs are typically underwritten by banks and can be bought way lower than their future value. If you’d have invested in Amazo stock back in 1997, you’d have changed $1,000 into more than $50,000 today.

Education

You want to make your money in a way that’s sustainable. Ventures which require little effort are unlikely to offer long-term rewards. Pursuing an MBA or other business degrees will provide you with expertise that will last you a lifetime. What’s more, you’re much more likely to be making your money in a fair, ethical manner. That’s something you can be proud of.

How to become rich the right way: Forget “get rich” scams

Building wealth should be a gradual process. There are many ways that smart investments can yield results over time. Adequate financial planning should be your top priority. That means budgeting, managing debts and saving consistently to ensure you have a secure financial base.

Beyond this, you can take the opportunity to cultivate your entrepreneurial spirit at IE Business School. While the idea of getting rich quickly is alluring, we’ll provide you with the tools you need to succeed in a volatile and ever-changing world. With a focus on sustainable practices and a hands-on approach to learning, we’ll ensure you have a stable future that doesn’t need quick-fix solutions.

At IE Business School we know the right way to do things. Be part of positive change and continue your path to being a true professional.

Money & Finances

What do you believe are the best and worst “get rich quick schemes” out there?