Is That A Pyramid Scheme or Multi-Level Marketing?
First we must define what a pyramid scheme is. A pyramid scheme is a way to sell goods where commissions are paid to recruit new sellers. The commission is dependent on the number of sellers recruited. So the soul purpose is to build a sales organization and increase the number of sellers at lower and lower levels creating the pyramid. There is no focus on product. The product is used only as a device to rally around and give the illusion of a product based company.
