Meaning of the word "pyramid selling" in English

What does "pyramid selling" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

pyramid selling

US /ˈpɪr.ə.mɪd ˌsel.ɪŋ/

UK /ˈpɪr.ə.mɪd ˌsel.ɪŋ/

Noun

a system of selling goods in which people are paid to sell products, but are also paid for recruiting other people to sell them. This system is illegal in many countries.

Example:

•

The company was shut down for engaging in pyramid selling.

•

Many people lost money in the pyramid selling scheme.

Synonym:

pyramid scheme multi-level marketing (MLM) (often used interchangeably, though MLM can be legal)network marketing (often used interchangeably, though network marketing can be legal)

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