A pyramid scheme is a shiny, too-good-to-be-true setup where the real “business” isn’t selling a product—it’s recruiting people.
You’re told you can make easy money
But to do that, you have to bring in other people
Those people are told the same thing
Money flows upward, not from customers, but from new recruits’ fees
Eventually, you run out of people to recruit
The bottom collapses, and most participants lose money
In short:
If success depends more on who you recruit than what you sell, it’s a pyramid scheme.
Mathematically unsustainable. Structurally top-heavy. Socially awkward when your cousin stops replying to texts.