Pyramid scheme
Type of unsustainable business model / From Wikipedia, the free encyclopedia
Dear Wikiwand AI, let's keep it short by simply answering these key questions:
Can you list the top facts and stats about Pyramid scheme?
Summarize this article for a 10 year old
A pyramid scheme is a business model which earns primarily by enrolling others into the scheme, however rather than earning income (or providing returns-on-investments) by sale of legitimate products to an end consumer, it mainly earns by recruiting new members with the promise of payments (or services).[1][2] As recruiting multiplies, the process quickly becomes increasingly difficult until it is impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
Pyramid schemes have existed since at least the mid-to-late 19th century in different guises. Some multi-level marketing plans have been classified as pyramid schemes.[3]