Question about BNB Smart Chain

So for a bit of backstory, my dad has always been into digital marketing and trying to pave his own way online. However, he always manages to get into the things that are the most scammy (think MLMs). Recently he's been talking to me about this BNB smart contract business in which individuals send contributions and receive 1% of a certain number of those who joined before and after them (the amount of people you receive from increases as you contribute more). There's also more typical affiliate methods, but basically the company only takes a % when you withdraw and 95% of funds move throughout the individuals while the other 5% goes to the company.

I'm trying to talk to him about it and explain how it's literally financially/economically impossible to just generate wealth that makes 100% of people gain with only 95% of assets going in. Unless there's some wicked voodoo that I'm missing, is there a better way I can explain this or understand it myself?