MLMs can be recognized in a lot of things all of which relates to commissions on the top of the pyramid. They mostly refer it too level 1,2, 3 and so on commissions that even if the top of the pyramid hadn't recruited someone below him he will still earn from him. With the endless possibility of earning a lot of MLMs fail as they will always run out of money to pay the top users back. And to top it all there is really no business happening new members are just paying of the old members and that how the cycle continues.