The KKK as multi level marketing organization?

The newest paper from Steven Levitt and Roland Fryer:

"...Rather than a terrorist organization, the 1920s Klan is best described as a social organization built through a wildly successful pyramid scheme fueled by an army of highly-incentivized sales agents selling hatred, religious intolerance, and fraternity in a time and place where there was tremendous demand." (NBER abstract)

Hatred and Profits: Getting Under the Hood of the Ku Klux Klan is available from the SSRN or from Fryer's own Harvard page.