In truth, the program had no product to offer. Its participants made money by recruiting distributors - not by selling goods or services to consumers. And if you do not recruit anyone, you get nothing for your money. Unfortunately, many other consumers don't see through pyramid schemes until they've invested their money and time. Enticed by promises of quick or easy profits, they eventually lose their entire investment, and some even go into debt.
Many people join pyramids in the belief that they're actually joining a multilevel marketing plan.
Legitimate multilevel marketing plans offer a product or service that's sold to the public through a tiered network of distributors. However, many multilevel marketing plans are actually pyramids. If they offer a product or service, it's only to make the program look legitimate. Participants in pyramid schemes often end up paying far more than their initial investment. Not everyone in a pyramid scheme loses money.