Pyramid Scheme

Different states define pyramid schemes in different ways. However, in general:

  • A marketing network is the entire Team that uses direct selling as a way to market products. The people in a network earn their compensation, or commission, from selling products and services.
  • A pyramid or pyramid scheme refers to an illegal network operation where participants are rewarded substantially for the recruitment or enrollment of other participants rather than for selling products or services.
Posted: 30-Mar-2009
Reviewed/Updated: 18-Sep-2015