Page "Pyramid scheme" Paragraph 7

The flaw is that there is no end benefit.

The money simply travels up the chain.

Only the originator ( sometimes called the " pharaoh ") and a very few at the top levels of the pyramid make significant amounts of money.

The amounts dwindle steeply down the pyramid slopes.

Individuals at the bottom of the pyramid ( those who subscribed to the plan, but were not able to recruit any followers themselves ) end up with a deficit.