There are companies out there called Multi-Level Marketing companies or network marketing. These companies usually offer products that customers can't buy in a traditional retail environment. Said products are sold through independent, non-salaried distributors who usually earn commission through what few sales they make, but mostly through recruiting others. They are often mistaken for pyramid schemes and there is a reason for that: the MLM business model is shaped like a pyramid where the people at the top of the pyramid and have been in business longer earn money from their recruits and those in their 'downline'.
Globally, network marketing makes $40 billion a year, but don't expect to get any of that money if you join an MLM as one of their distributors. According to a report cited by the Federal Trade Commission, 99% of distributors working for MLMs lose money or break even.
"Of the 350 MLMs I have analyzed for which a complete compensation plan was available, 100% of them are recruitment driven and top-weighted. In other words, the vast majority of commissions paid by MLM companies go to a tiny percentage of TOPPs (top-of-the-pyramid promoters) at the expense of a revolving door of recruits, 99% of whom lose money." -Jon M. Taylor, MBA, Ph.D., Consumer Awareness Institute, The Case (for and) against Multi-level Marketing
Even a 2018 study from the AARP found that only 27% of people in MLMs make any kind of money and don't lose by joining MLMs. So while some MLMs might brag that they are about offering products, most if not all of them are driven by recruitment and having those joining the company give money to those who recruited them. MLMs are not illegal like a pyramid scheme, but operates in a similar manner. The main reasons MLMs get a pass seem to be because of good lobbying in Congress (groups like the Direct Selling Association and the law firm Thompson Burton lobby on behalf of MLMs) and being able to hide behind a product or service they technically offer, even sales aren't their main source of revenue.
Many MLMs have a sketchy business history from specific instances of sketchiness ( Herbalife's settlement for bribing Chinese officials , the PETA-endorsed Arbonne MLM being sued for being a pyramid scheme and the FTC sending the company a warning letter against its unlawfully advertising that claimed their products treat/prevent COID-19, etc.) to overall statements against the businesses ("MLM makes even gambling look like a safe bet" was a recent quote from Jon M. Taylor, the terms "huns" being created to address women who fall prey to MLMs, etc.). But, long story short, MLMs are not a very good business to join. Plenty of news articles have been written describing why you shouldn't join them and hopefully more people can be educated on the pitfalls of joining one.
Awesome