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 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.

Last modified: January 9, 2024

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