pyramid scheme

noun

: a usually illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants

Examples of pyramid scheme in a Sentence

Recent Examples on the Web
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The business models of many of these firms resemble and blend together two different types of venerable scam business models - boiler rooms and pyramid schemes. Felipe Schrieberg, Forbes.com, 10 June 2025 So, like all pyramid schemes, the only people who make money are the people who come in early. Dwyer Murphy june 6, Literary Hub, 6 June 2025 Such enterprises invite non-salaried workers to sell goods and then also earn commissions by recruiting more salespeople; the Federal Trade Commission has over the years outlined subtle legal differences between MLMs and pyramid schemes. Lora Kelley, The Atlantic, 21 May 2025 Among them, pyramid schemes, membership fee fakes, credit repair cons, dubious health offers, fictitious diploma schools and illegitimate gaming services. Charles Selle, Chicago Tribune, 2 Apr. 2025 See All Example Sentences for pyramid scheme

Word History

First Known Use

1949, in the meaning defined above

Time Traveler
The first known use of pyramid scheme was in 1949

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Cite this Entry

“Pyramid scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/pyramid%20scheme. Accessed 17 Jun. 2025.

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