Pyramid schemes is a form of network marketing or what is known as multi-level marketing (MLM) where the buyer not only gets the product but also becomes a shareholder in the company. All s/he needs to do is to get more people to buy the product, convincing them this is a way to make money.
In MLMs, salespeople make more money from recruiting other people to sell, rather than the sale of the actual products. This creates a system where the sales people at the top of a company make the most from recruiting others, while people at the bottom are losing money — hence why it’s called a “pyramid scheme.”
Here are examples of 10 famous pyramid schemes: