Yes, as long as it is tied to a real product or service.

There are laws against arrangements called “Ponzi” or “Pyramid” schemes - typically at the state level. The modern twist on them is called “Multi-Level Marketing” that walks the line between what’s legal and illegal with pyramid and Ponzi schemes. Speak with an attorney or your local attorney general’s office to learn more about a specific state.

I’ve attached some helpful links below:
- 1 to an overview on Ponzi schemes,
- 2 to the Securities and Exchange Commission’s explanation on both schemes, and
- 3 to the Federal Trade Commission’s guides on these schemes.

There are good ones that are not a ripoff. Don’t measure every business by the results of your experience with one.

I operate a profitable and legitimate business, write me (wasdadd) at yahoo.