Pyramid scheme
OverviewEgg and Sperm modelsRelation to Ponzi schemesConnection to multi-level marketingLegalityNotable casesSee also
A pyramid scheme is a business model which, rather than earning money (or providing returns on investments) by sale of legitimate products to an end consumer, mainly earns money by recruiting new members with the promise of payments (or services). As the number of members multiplies, recruiting quickly becomes increasingly difficult until it is impossible, and therefore most of the newer recruits do not make a profit. A
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