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Ponzi scheme are mostly online affiliate business. Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. KEY TAKEAWAYS Similar to a pyramid scheme, the Ponzi scheme generates returns for older investors by acquiring new investors, who are promised a large profit at little to no risk. Both fraudulent arrangements are premised on using new investors' funds to pay the earlier backers. Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments.