Unlimited Recruiting

With unlimited recruiting in a given area, new recruits soon find it increasingly difficult to recruit more participants into the system. This is due to market saturation, wherein prospects perceive a diminishing opportunity to profit from participation.

To illustrate an approach more in line with market realities, suppose the program were limited to one distributor for each 10,000 population in a given area or to one distributor within each one-mile radius—much like the territorial protection of a retail franchise. As a result, the problem of saturation would not be significant.

But limiting the amount of recruiting or the number of distributors in a given area is uncharacteristic of pyramid schemes because that would lessen the illusion of the potential for very large incomes for new recruits. Such limitations would essentially render a pyramid scheme impotent.