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pyramid selling

noun
1.
a practice adopted by some manufacturers of advertising for distributors and selling them batches of goods. The first distributors then advertise for more distributors who are sold subdivisions of the original batches at an increased price. This process continues until the final distributors are left with a stock that is unsaleable except at a loss
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
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Contemporary definitions for pyramid selling
noun

the selling of goods in a pyramid scheme; also written pyramid-selling

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