A pyramid scheme is a business model in which payment is made primarily for enrolling other people into the scheme. Some schemes involve a legitimate business venture, but in others no product or services are delivered. A typical pyramid scheme combines a plausible business opportunity (such as a dealership) with a recruiting operation that promises substantial rewards. A recruited individual makes an initial payment, and can earn money by recruiting others who also make a payment; the recruiter receives part of these receipts, and a cut of future payments as the new recruits go on to recruit others.

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Pyramid Schemes

  • Robert T. Smythe

摘要

A pyramid scheme is a business model in which payment is made primarily for enrolling other people into the scheme. Some schemes involve a legitimate business venture, but in others no product or services are delivered. A typical pyramid scheme combines a plausible business opportunity (such as a dealership) with a recruiting operation that promises substantial rewards. A recruited individual makes an initial payment, and can earn money by recruiting others who also make a payment; the recruiter receives part of these receipts, and a cut of future payments as the new recruits go on to recruit others.