Search
Select the dictionary language
pyramid selling
/pˈɪɹɐmˌɪd sˈɛlɪŋ/
/pˈɪɹɐmˌɪd sˈɛlɪŋ/
Pyramid selling
01
a form of multi-level marketing where profit is derived primarily from recruiting others into the scheme, rather than from legitimate product sales
What is "pyramid selling"?
Pyramid selling is a business model where participants earn money primarily by recruiting others into the scheme rather than selling products or services. New recruits often pay a fee to join, and a portion of this fee goes to the person who recruited them, forming a structure resembling a pyramid. This model is usually unsustainable because it relies on constantly adding more participants, and those at the bottom often lose their investment.
Examples
Pyramid selling schemes recruit participants with the promise of earning money by enrolling others into the scheme, rather than selling actual products or services.
Authorities warn consumers to be cautious of pyramid selling programs, as they are often illegal and unsustainable.
