pyramid schemes

A pyramid scheme is an illegal business model that recruits members through a promise of payments or services for enrolling others into the scheme. Participants earn money primarily by bringing new members in, rather than from selling actual products or services. As the scheme grows, the number of new recruits needed increases exponentially, making it unsustainable. Eventually, it collapses when recruiting becomes impossible, leaving the majority of participants—especially those at the bottom—financially harmed. Pyramid schemes rely on constant recruitment and are distinguished by their focus on recruitment over genuine product sales.