I believe it is a piramid scheme. A business where profit is gathered from investor who in turn gather profit from future investors and so on, all the while passing a peice of future profit up the chain, with the top receiving income from all who paticipate. This business can function in many industries and claim to provide or sell quite the assortment, but initial investment is the primary source of income and fraud. These businesses are patiently prohibitated by law.