Ponzi scheme

Also, multi-level marketing scheme (MLM). Named after Charles Ponzi fund (1920) in the USA. Any multi-level marketing scheme (sometimes referred as financial pyramid) that sets goals to reap profits from entry level investors (product distributors) based on their further sales. In simple words, you buy a questionable product with discount to sell it for 10-15% of difference profit. The ones, who aren't capable to find new clients, are left to 'eat out the product' they bought.

Such marketing schemes attract people with higher and least realistic returns. Supposed 'easiness' of finding a client and the idea that the product is really in demand. The top of the pyramid least likely to lose anything.