Definitions for "pyramid scheme"
Keywords:  recruit, mlm, scam, ponzi, fraudulent
An illegal investment scheme in which investors are promised impossibly high...
An illegal financial scheme in which: (1) participants are recruited by chain letter, by friends, or at meetings, (2) a list of n names is displayed or distributed (often sold) to new participants, and (3) the payment of an "ante" to the top name on the list by new participants is notarized or supervised. Developed from money chain letters in May 1935. See Springfield5.
or Ponzi Scheme A money-making opportunity popularized by Ponzi and illegal in the United States in most forms. This scheme involves an individual convincing others to pay him for the right to solicit others for payment in turn. By recruiting more people than the number of people you pay for this right, you supposedly make money. In reality, the people at the bottom of the pyramid never get paid by anyone and lose. Such schemes are strictly forbidden at most Internet sites, and will cause you and your system administrator great grief if you try to propagate such a scheme by e-mail or over the newsgroups. Occasionally, merchandise sales are involved (see MLM for a similar legitimate opportunity).
a business that places all of its attention on the hype about how much money you will make while completely disregarding the product it is selling to little importance
an exchange of money for no product
a plan by which a person gives a consideration (usually money) for the opportunity to receive money that is derived primarily from the
Keywords:  zero, dollar, gain, sum, game
a zero-sum game-for every dollar of gain there is a dollar of loss