From Longman Dictionary of Contemporary Englishpyramid sellingˈpyramid ˌselling noun [uncountable] BBTSELLa business activity in which the main income comes from people who buy the right to sell products, rather than from the sale of the products themselves. Pyramid selling is illegal in many places.
Examples from the Corpuspyramid selling• Sections 118-123 deal with pyramid selling.From Longman Business Dictionarypyramid sellingˈpyramid ˌsellingCOMMERCE a business activity where the main income is from people who pay to sell products, rather than from sales of products themselves. Pyramid selling is illegal in many placesPyramid selling is concerned with marketing goods or services through a chain of private distributors. → selling