In reality, however, the supply of participants is limited, and each new level of participants has less chance of recruiting others and a greater chance of losing money. From this point a participant would then make money from all recruiting done by the four recruits and their recruits. Pyramid Reality Pyramids are illegal. Because pyramid sales plans are by their very nature deceptive, they have been made illegal by the Minnesota legislature. There is a real risk that a pyramid operation will be closed down by police and the participants subject to fines and possible arrest.
Pyramids are deceptive.
Participants in a pyramid, whether they mean to or not, are deceiving those they recruit. Few would pay to join if the odds stacked against them were fully explained. Pyramids are losers. Pyramids inevitably collapse because it is mathematically impossible to recruit the numbers of people required to support the pyramid. Pyramid promoters are masters of group psychology.