There are two scenario's I'm wondering about, which would be the best way to make profit, and make sure it's legal (it sort of sounds like a pyramid scheme). Ok:
Business: E-mail system
10 friends are selected to be "Head Recruiters." These 10 people must sign up for our e-mail. They pay $1 / month to use it. These Head Recruiters' job is to recruit people. For each person they recruit, they will get paid 25 cents / month from the Head Admin. So if they recruit more than 4 people, they are being paid monthly to have e-mail. Now, to keep spreading customers this is what happens. Those people they recruit, are told they can make money. But the Head recruiter will be in charge of that part. So the head recruiter pays them 25 cents / month for each person this new customer recruits. This new person will pay their dollar to us directly still, but will be paid by the Head recruiter. This recruitee is told that they can tell thier recruitees can make money the same way. But the difference is, they are paid by Head Admin instead of the person who recruited them, since the person who recruited him is a recruitee, not a Head Recruiter.
So in all, Option A has a Hierarchy:
Head Admin (pays Head Recruiters)
Head Recruiters (pays recruitees)
1st level Recruitees (they do not deal money to their recruitees, but tell them to talk to Head Admin, but are paid by their Head Recruiter)
2nd level Recruitees (they do not deal money to their recruitees, but tell them to talk to Head Admin, and are paid by the Head Admin)
The same basic principal applies, except this is the difference. The people the Head Recruiters recruit, are told they can make money in the same manner, but they are paid by Head Admin, not the Head Recruiter. So that really makes the Head Recruiter title meaningless, since all customers will be on the same level in the hierarchy.
1) Which option seems to maximize profit?
2) Which option seems to seem the most fair?
3) Are both options legal?
4) Which option seems to be the most reliable?