Nevada Code § 598.100

Definitions
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For
the purposes of NRS 598.100 to 598.130 , inclusive:
1. Compensation does not mean payment
based on sales of goods or services to persons who are not participants in a
pyramid promotional scheme or endless chain and who are not purchasing in order
to participate in such a program.
2. Promotes means inducing one or more
other persons to become a participant in a pyramid promotional scheme or
endless chain.
3. A pyramid promotional scheme means
any program or plan for the disposal or distribution of property and
merchandise or property or merchandise by which a participant gives or pays a
valuable consideration for the opportunity or chance to receive any
compensation or thing of value in return for procuring or obtaining one or more
additional persons to participate in the program, or for the opportunity to
receive compensation of any kind when a person introduced to the program or
plan by the participant procures or obtains a new participant in such a
program.

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