I know the term but I’ve never actually been able to understand what it is and what happens in one
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At it’s most basic idea a pyramid scheme is one where there’s no “real” customers just sellers who sell to sellers who sell to sellers.
I (at the top of the pyramid) sell something to you that you are going to sell to someone else. I convince you that this is a good idea and that other people are really going to want this thing, so you buy a bunch of it intending to sell it to other people. But instead of finding real customers you just recruit someone else to sell the product for you, and they do the exact same thing. All the way down to the bottom where some schmuck buys a thing that they don’t really want to use thinking that they’ll be able to sell it to someone else only they can’t so it just sits there.
In a modern context there are sometimes some customers involved who actually do use the product, but the vast majority of the “buyers” of the product are people intending to sell the product to someone else.
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