Establishing a passive income stream

I've found a new way to generate passive income. I am going to build off the traditional MLM scheme, basically what I'm gonna do is offer a paid "internship", as in the intern pays me. It will be $50 per month, and while I will market it as a "private equity internship", the actual role itself will be to recruit others to join. The intern will receive 10% of all revenue he generates for the first month. So if he gets his friend to join and start paying $50 per month, I will give the initial intern $5. The key here is the payment is one time in nature, yet I get to calculate my earnings as recurring, and create my own little ARR model. I'm also taking zero risk. Also in the end the intern should be grateful because he gets to tell everyone he works in private equity.