Illegal multilevel marketing gimmick that promises commissions on one's own sales as well as on the sales of recruits called Pyramid scheme.
A pyramid scam is an unethical and unreliable investment pitch that depends on guaranteeing irrational profits on fictitious investments. The fact that the early investors receive these substantial returns prompts them to endorse the program to others. Returns to investors are paid from fresh capital coming in. When there are no more investors left, the pyramid eventually falls.
These businesses, sometimes known as pyramid schemes, are prohibited in the United States.
What is multi level Marketing?
Distributors profit from the sale of tangible goods and from commissions on the purchases and sales of the distributors they have recruited through Multi-Level Marketing operations (MLMs), which are respectable business schemes.
Although they sometimes pass for MLMs, pyramid schemes are more concerned with the fees from recruiters than the money from product sales.
To know more about Pyramid Schemes, refer to-
https://brainly.com/question/1382097
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