I thought a pyramid is multi-level marketing. I get n people to pay me something... | Hacker News

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stretchwithme on June 4, 2011 | parent | context | favorite | on: Groupon is a straight-up Ponzi scheme

I thought a pyramid is multi-level marketing. I get n people to pay me something while they each get n people and so on until there aren't any other people entering the scheme.

How is Groupon like that?

ThomPete on June 4, 2011 [–]

With multi level marketing you are actually selling a product. A straight out pyramid scheme you don't sell anything or at least it's not necessary.

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