Pyramid scheme

A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products. 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.