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Where is it come from?
Charles Ponzi, born Carlo Ponzi (March 3, 1882 – January 18, 1949), was an Italian swindler and con artist in the U.S. and Canada. He promised clients a 50% profit within 45 days, or 100% profit within 90 days, by buying discounted postal reply coupons in other countries and redeeming them at face value in the United States as a form of arbitrage. In reality, Ponzi was paying early investors using the investments of later investors. While this swindle predated Ponzi by several years, it became so identified with him that it now bears his name. His scheme ran for over a year before it collapsed, costing his “investors” $20 million.
Background on Ponzi Schemes
Ponzi schemes seem to be everywhere at the moment. The quick rich involving you to invest money into something to get money back. I have used one to see the concept and even now I struggle to find why anyone wants to use them. Admittedly I only bought ‘one’ traffic pack from it and it’s still not made 20% profit.
Join any work at home opportunity group on Facebook and you will see loads of these. GetmeAds, TrafficNetworkAds are two I can think of on the top of my head. Guys seriously why do you want to put your money into something with the hope of getting money back, it’s not stock markets, it’s not property investment, it’s an actual scam.
So let’s break it down a little further in how it actually works. Ponzi schemes are fairly complex, even on a small scale it’s certainly baffling for my little brain when it comes to maths. To highlight a Ponzi scheme online, first of all, NO product. Usually, this is typical, it will have a video showing you how it works, used to rope in people to invest. Ponzi Schemes rely on a single person or a group to invest, over time the scheme generates money ‘payback’ ‘cashback’ etc so over 6 months you gain a profit from the investment. That’s how it works in simple terms. However, it’s a scam. That money goes nowhere. It’s a pot of money. New investors money pays for old investors money. Once the money dries up the company usually fold and the money has gone. Everything you have invested and made has gone.
4 Signs You’re Looking at a Ponzi Scheme
Have they randomly just appeared? Unclear business models and you actually have no idea who the owner is, the CEO and most importantly the country they are operating. This is key. If it is online, do a quick domain check, it will tell you everything. If the company is 6 months old and has no external information, run away from it.
Do they promise a payback scheme? Do you purchase stuff like traffic? followers? or bitcoin?. Usually, it’s Buy 1x pack for $50. You earn 1.20% of the value of that pack each day for a duration 600 days for example. I’m not going to do the maths because I’m terrible but, you are looking to earn a good amount of profit till that pack runs out. Spidey senses tingling yet?
Very aggressive sales techniques. Have you noticed how scam artists will go to any length to get someone to sign up with them? Honestly speaking from experience, the person I signed up under to experiment for this education on Ponzi Schemes offered me £10 per traffic pack, plus extra for each referral I was getting? Why? Because that person was earning money in a tiered system (Pyramid Scheme) for each time someone in his downline referred and bought a ‘pack’.
Difficulty withdrawing funds. A Ponzi scheme discourages its investors from withdrawing and creates delays for dispensing funds. Usually, because the money may not be there…
Want to make money online?
Speak to me on Facebook if you want any sort of 1 on 1 advice. I am more than happy to help you out. I know that making money online is such a big thing and people are rushing to get a chair in the chain but it’s not the sort of thing you can just sign up too and it happens. Ponzi Schemes give you that but I can bet my bottom dollar in a year’s time you have invested £5K into it and you get 3K back, a loss of £2K. It happens and it happens all the time.
Traditional MLM? That works with effort. It’s your own business generating sales for companies.
Build a blog and promote affiliates on a niche you love. Those are just two ways of earning online.
The more you read on My Passive Income Diary the more you will see that there are legitimate and profitable ways of earning online. All you need is time, effort and the audience.