To start off, this program follows a Pyramidal cash-gifting model. Now, I use the term model for a reason: as I said before, this system bears similarities in structure only. Why? Well, to make understanding easier, I think it'd be best if I educate you on the 2 main types of cash-gifting systems: single-line and pyramid.
Single-line systems are generally rarer than pyramidal counterparts, mostly for good reason. The majority of single-line systems are obligatory and require you to dish out a rather large entry fee. To give you an idea of how large, chances are if you can just blow that much readily, you have wealth of your own and don't really need a program. Most of the time, however, you are offered alternative, cheaper "settlement" entry prices. You'd think this a good thing, right? NO! Why? Because if anyone below you "settles" for more or manages to shell out the "normal" fee, then you, my friend, see 0 of any of that. Jack-Squat Diddily. What's worse is that you're usually not allowed to request anything but the normal fee, so your already small chances shrink even more. These systems are, therefore, the easiest to scam people with, by far.

And now that you know the basics (yes, those are generally facts, unfortunately) of single-line, it's time to move on to the traditional pyramid. First things first, pyramid does not automatically mean a scam (That assumption is rather ignorant, no offense to any of you, that's why you're learning). The vast majority of businesses period run on a pyramidal structure. Think about it: all companies have a CEO, president, overlord, or whatever. Under that person are the close associates, under them are their associates, and so on (and for some, somewhere near the bottom of that pyramid is you). This leads us to problem no. 1 with the traditional pyramid, a dilemma I call the "Eternal King": the guy at the top stays at the top. This gives an unfair advantage to those near and dear to the top and flips off those beneath them, including poor Joe Schmoe at the bottom, who use use a break more than anyone else. In addition to sticking it to Joe Schmoe, pyramids also run the risk of being illegal. How? By not being backed by a product. So this means that all those businesses who claim "there's no product" are either lying through their teeth or are in direct violation of U.S. federal law. Keep this little lesson in mind; it'll be brought full-circle pretty soon.