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@nixCraft Sounds like a pyramid or MLM scheme.
@briankrebs @nixCraft Still not sure how to differentiate one from the other.
@cmdrSprocket @nixCraft The difference is pyramid schemes ultimately collapse, whereas multi-level marketing schemes are generally just legal enough to operate in perpetuity. Both depend on initial investments from new members, who are then required to constantly recruit new people in order to see a profit.
@cmdrSprocket @briankrebs @nixCraft MLM seems to be a pyramid scheme but with marketing added in the mix rather than just redistributing debt, but the model means people downstream of the pyramid are selling at loss by design so doesn't really changes things in practice.