"You pay to sign up, then you get paid for signing people up" is basically the definition of a multi-level marketing scam.
> 'Give us money and we'll give you a chance at making more money.'
You have just described investing, lending at a variable interest rate, all forms of commodity and currency speculation, universities, craft fairs, conference booths, commercial real estate, manufacturers paying retailers for shelf space, salesmen buying leads, the entire marketing industry, etc. etc.
> That's quite recursive, and in some states, it's in fact a form of illegal gambling.
The fact that you can do something more than once in a row doesn't make it recursive. The problem with multi-level marketing is that A has to sign up B in order to make money, but that requires B to sign up C and so on recursively, which necessarily means there is someone at the end who pays but doesn't get paid.
> If you want to use ANOTHER BUSINESS and their facilities to do your work, then yes.
A landlord who hires a plumber to fix a burst pipe will claim they're a contractor. So will Uber. So will the perpetrators of the MLM scam. You can't use something to distinguish cases when it's the same in all of them.
> Cosmetologists can work right out of their own home as long as they have the relevant license. They don't have to rent a spot at a barber shop.
Their house doesn't come from the house fairy. The fact that they also live in it doesn't mean they didn't pay for it. Moreover, finding one person who got a house from the house fairy wouldn't get rid of all the other people paying money for space.
> Strippers don't have to work at a strip club - they can advertise on Craigslist and do private parties instead.
Drivers don't have to pay to get extra money, they can just take the normal rate.
> Some states require that if you require a specific tool or item for an employee or user of your services for the purposes of conducting business, you the employer or service provider are required to provide it. Here in CA, where Uber is HQ'd, we have that codified in law.
Even in that case, you will still have people working on commission who buy items themselves which aren't "required" but increase their effectiveness and therefore their commissions.
Also, my employer requires me to wear pants at work, but they have never provided any. Are they in violation of California law?
