the pyramid that is not in Egypt

A friend of my aunt is persistent in inviting us to join an MLM (multi Level marketing) or a so-called networking company wherein there's a promise or earning big money with no cash-out; we just need to sign-up and recruit other people. A lot of people already claimed that they do receive money from this business, but after an extensive analyzation of how the system of this business works, I've come up with the realization that I would not join this type of business hype. Here's why?

My recruiter showed me the application form that I needed to fill-up to join them in the networking. TO my dismay, the "application form" wasn't really an application form for membership, but instead, a loan application form from a never heard-of bank. The form stipulated that if ever I've already affixed my signature, the bank will lend me 8,000 pesos so I need to pay them the annual interest of 24% and the monthly amortization of 1,400+. That money I supposedly borrow from that bank will then be given to someone I don't even know, meaning, I won't be able to touch my "own" money. The recruiter said that it will be paid-off by the company and I would start to profit from thereon provided that I could make at least 2 people fill-up those loan application forms. I asked, "what if I couldn't? what would be the consequence?". Her answer, "don't worry, we'll help you out. we'll help each other out."an answer that really didn't manage to answer my query. More questions are building up on my mind during my conversation with her, like, "If there's nothing to sell and I don't even have to take out even a single cent from my pocket, then where the hell does all the money coming from??" Well, the answer to that question had already become apparent to me. I think this is how the system works: A sign-up for a loan, if B is the company and C is the bank, B will get the loan from C and start an investment to earn profits. Now, if I am A and I made D and E, my friends, sign-up, I'll gain a part from their loan. meaning, ang suweldo ko, galing sa utang ng iba and if the above example would be true, then it would mean that galing pa sa utang ng friends ko! But hey! If B, the company, do well in the investment, then good for us because the business will strengthen, but what if not? E di AKO ang may responsibility to pay-off the debt from C because I am the one filled up the loan form! So, my conclusion is, this business is not entirely a ridiculous one if the perpetrators are good in doing business and sincere in helping other people enrich their lives. But, if all the money involved would just perform a disappearing act together with the people who have them, then ultimately, a lot of people will suffer.