It is a slippery slope. From Wikipedia, again, "For the initial members of the organization (those at the top of the pyramid) the scheme is potentially lucrative—whether or not they do any work, the organization's membership has a strong incentive to continue recruiting and funneling money to the top".

It looks lucrative in the beginning. And you are right in that it could be a life insurance product (I haven't check as I wouldn't care) or selling of a toothpaste (read, Amway); many consider these MLMs a pyramid. My room-mate made money from it so it is natural that it is tough for me not to pay attention. The ball is in reason's court.

Reference:
https://www.ftc.gov/tips-advice/business-center/guidance/multilevel-marketing