pyramid scheme

American  

[pir-uh-mid skeem] / ˈpɪr ə mɪd ˌskim /

noun

1. any moneymaking scheme, usually illicit, in which each participating investor recruits others and then collects from what those invest, so that an ever-increasing number of participants generate more and more profit for those who recruited them.

   She invited me to talk about a new "business opportunity," and ended up trying aggressively to hook me into a pyramid scheme.

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Etymology

Origin of pyramid scheme

First recorded in 1945–50

Example Sentences

Such is their desperation they don’t quite allow themselves to see this is a fairly basic pyramid scheme that depends on fresh blood — and their bank accounts — to keep the Wheel turning.

From Los Angeles Times

And the industry wants to distance itself from multiple marketing, from a pyramid scheme.

From Salon

Mr Singh said they began to realise the agents operated like a pyramid scheme.

From BBC

A classic example would be people in a pyramid scheme targeting fellow members of their church.

From Salon

It was a pyramid scheme in disguise, and more.

From Los Angeles Times