A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public. An organization gets people to make a payment and join. In exchange, it promises its new members a share of the money taken from every additional member that they recruit. Those at the top of the pyramid receive a share of the payments. Eventually, recruiting is impossible and the plurality of members are unable to profit from the scheme.

Here on LawServer you’ll find relevant state laws about business opportunities.