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.