Who is Pyramid Scheme?
A pyramid scheme is a business model which earns primarily by enrolling others into the scheme, however rather than earning income (or providing returns-on-investments) by sale of legitimate products to an end consumer, it mainly earns by recruiting new members with the promise of payments (or services). As recruiting multiplies, the process quickly becomes increasingly difficult until it is impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal. Pyramid schemes have existed since at least the mid-to-late 19th century in different guises. Some multi-level marketing plans have been classified as pyramid schemes.
