If it looks like a duck...
Run, don't walk away.
If you have to ask... "Is this a pyramid scheme..." It most likely *is.*
And as for "Pyramid" schemes being illegal. Outright ponzi schemes are illegal. No one, except the key players make money in a ponzi scheme, and the money of folks getting brought in is the only income source covering those actually making money.
Ponzi schemes have made it years without anyone noticing... Madoff made a lot of money over a lot of years on a pure ponzi scheme. He even paid people on occasion from the income of other investors. But he never actually invested the investors money in anything that could make any real return.
He just paid himself and his family.
A "pyramid" is most likely based out of Utah, or at least has an office in Utah based on the very lax (or, from another perspective: very competitive) state tax and banking regulations there.
They look like a ponzi scheme, but they will actually have a product for sale. Usually the product has some super-unique aspect that makes it *special.* I call them snake-oil sales companies. less than a fraction of a percent of those selling the product actually *make* money, and the very-clear majority of product sales are purchases by salespersons who are mandated to purchase a certain set-amount of product each month in order to stay in-salesperson-status with the company. It will look like a ponzi scheme, and they get in trouble with "the law" often enough. But it is not criminal to "sell" anything they are selling in the US... So they skirt the law in many cases... The ones that get in trouble are usually for accounting irregularities, and fraud, not necessarily with the specific business-model, though. They get "warned" a lot for "claims" about the product. And they get sued for trying to tie-in to celebrities. A celebrity might say: "I like a certain berry in my yogurt..." Then the company turns around and says: "Celebrity X endorses our product..." And copies and pastes a google-search image of the celebrity next to their endorsement...
But, needless to say, they operate legally for the most part, just skirting violating the law... And many operate for years.
No one makes anything beyond the fraction of a percent, who actually *make* something, and the fraction is even smaller of those who actually make enough to make a livable income from it... The company, and those running the company make a killing...
Anything sold by one of those snakeoil sales companies can be found somewhere else for a lot cheaper...
These snakeoil sales companies should not be confused with "direct sales" companies that might *look* like pyramid schemes... Usually it is snakeoil-pyramid schemes that are trying to *resemble* direct-sales companies... They will even compare themselves to legitimate direct sales companies in corporate literature...
If the corporation is sustained by product sales directly to "sales" people... To me that speaks that it is a snakeoil sales company, and not a direct-sales company. Avon and Mary-Kay are two examples of respected direct sales companies. But even with "direct" sales companies, you can usually find the same thing somewhere else for a lot cheaper. Especially with big-box retailers, and the purchasing power that drops prices...