Editing Pyramid scheme (section)

== Relation to Ponzi schemes==
While often confused with each other, pyramid schemes and [[Ponzi scheme]]s are different.<ref name="zuckoff">{{cite book|last1=Zuckoff|first1=Mitchell|title=Ponzi's scheme – the true story of a financial legend|date=10 January 2006|publisher=Random House Trade Paperbacks|location=New York|isbn=0-8129-6836-0}}</ref> Pyramid schemes are based on [[network marketing]], where each person in the pyramid is tasked with bringing in their own subordinates and in turn profiting from their sales or recruitments. This fails because it essentially requires an infinite number of people to join the company. In a Ponzi scheme, however, participants are promised returns on "investments", supposedly into stocks or goods, but which are actually paid for by new investors, while a central leading figure takes a portion as profit.