From Rolling Stone:
"Vemma is the latest mutation of an American invention.
Multilevel marketing began in the middle of the past century with one
company, a predecessor of Amway. The idea was simple: Instead of just
selling a product, you could recruit people to sell it, too. Then, when
they made a sale, you both shared in the profit. Recruiting soon became a
lot more profitable than merely selling, a shift in incentives that
produced a first in American consumerism: Suddenly the pitch was more
important than the product. In some cases it wasn't necessary to even have a
product. For some 50 years, lawmakers, consumer advocates and lobbying
groups have argued over whether this unique setup constitutes a
legitimate business or something more sinister, like an illegal pyramid
scheme"
