A randomizer site is one where a member pays say 20 bucks, admin gets $5, the referrer gets $10 and some random member get the other $5. You pay that initial $20 hoping for other members to join. Matrix is similar. They are scams in my mind... don't know about legal. That is just an example. Some only pay a random person, some only random and referrer. I guess it depends really. If you want to see one in action go to: www.spenstar.com ... found it in google, via adwords...
Thanks Matt! Wow, a new twist on Ponzi schemes. I guess with world population rising, there are now several suckers born every minute. The FTP prosecutes people who operate Ponzi schemes. Here's a good overview from the FTC: http://www.ftc.gov/speeches/other/dvimf16.htm
That's the funniest method I seen of making money .Do people really pay there? Regards Jeet P.S Wind Rider I like your sign.Hope would have seen it earlier.