This is the definition of a closed system, where an organization’s salespeople are also its end users, buying products at inflated prices, while profits move to the top of the chain. In other words, it’s a pyramid scheme, a wealth-redistribution system: those at the bottom pay in, but only receive money if they’re able to continue building the pyramid’s base beneath them, which becomes increasingly difficult as the pyramid grows. The more confusing the numbers and math, the harder it is to ascertain the grift.
