It's just the way things work. We can't all make the same, that would be unfair to the people who had worked at it longest. So, no Plexus is not a Pyramid Scheme. Yes, it works just like any other business, where the founders get paid the most, and then the next people down, and then the next people.
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Virtual Machine is a completely separate individual operating system installation on your usual operating system. It is implemented by software emulation and hardware virtualization. Virtual machine is a software implementation of a physical machine - computer - that works and executes analogically to it. Virtual machines are divided in two categories based on their use and correspondence to real machine: system virtual machines and process virtual machines.