http://richardbrokenshire.com/network-marketing/pyramid-scheme/

"Is this a pyramid scheme?" is one of the most often asked questions by potential recruits of MLMers. Network marketing is very often thought of as a pyramid scheme. The government attempts to close network marketing companies that appear to be a pyramid scheme. Why is that? Is there a reason that most MLM companies are thought of like this? What is a pyramid scheme? How does the federal government define a pyramid scheme? This post will try to answer all of these questions and more.