pyramid scheme

A fraudulent business model, illegal in most places, in which participants are paid to recruit more participants, rather than commissions on sales.

Frequently passed off as Multi-Level Marketing by incorporating sales of an unmarketable product or service into the scheme. In such cases, participants are usually required to maintain a monthly purchase quota to qualify for payments.

Pyramid schemes market to prospective participants while Multi-Level Marketing plans market to prospective consumers. Pyramid schemes fail because scam participants are not a viable market. Most of the participants pay more money to participate than they receive for participating because there aren't enough suckers left to recruit.

Once the suckers figure that out and quit paying into the scheme, those who recruited them start losing money too, and then they quit. The scam shrivels even faster than it grew.

by Downstrike September 9, 2004

Pyramid Scheme

The best sceme to ever set up once you learn to never underestimate the stupidity of the human majority. Just make sure you don't get caught, though.

I started a pyramid scheme eight years ago, and made $32,761,449 before people found out about it. But by then, I had already retired to the remote jungles of Brazil, where I built my deluxe compound equipped with the latest anti-tracking technology.

by suckers! October 31, 2003

pyramid scam

Any "business" plan that is a scam and completely fake. Usually involves the employee (a.k.a. the sucker) to pay the employer, rather than the other way around. Most notable for the use of the pyramid method of gaining money: you start by suckering one of your friends to dish out his money, then he gets one of his friends to do the same, until all your friends are broke and pissed off at you.

Have you been to that pyramid scam website? www.2by2.cult.

by superhog May 24, 2006

Pyramid Scheme

Any form of business proposal in which one pays a fee to begin, and rises up in a pyramid-like form, being given money by people under the original payer. Usually considered a hoax.

See also: wordChain letter/word

That's a pyramid scheme! Don't fall for it!

by Falconrath October 24, 2003

pyramid scheme

see scientology

hail xenu: the master of the the ultimate money-grubbing pyramid scheme

by placental soup July 5, 2009

Pyramid Stream

The act of live-streaming yourself doing any number of activities, and your only and/or majority of viewers, followers, donations, and subscribers alike come from a group in which each member does the same for one another that you are a member of.

That Jeff guy is all caught up in a Pyramid Stream. It's like MLM but more subversive.

by vladimir scootin September 17, 2018

pyramid scheme

illegal money-making arrangement where great wealth is promised, usually in a relatively short period of time.
very few people, if anyone, end up making any money, and in fact end up GIVING money in their vain hope of striking it rich.

there are many organizations which are, in reality,legalized versions of the pyramid scheme - Amway is probably the most well known and has been around the longest.

by James January 22, 2004