PONZI SCHEME! What you need to know

It's no more news that many people are always losing their hard earned money to various ponzi schemes. One thing is that no matter how convincing a ponzi scheme may appear, it is still a "ponzi scheme". All ponzi schemes work in the same way. A ponzi scheme works in a way whereby older members in the system are paid with the money new members put into the system, that is, a new member's donation is used to pay older members off. You'll agree with me that this is definitely not sustainable. It will get to a point whereby there will no longer be new members to pay off older members, and that is why most schemes are now introducing the " recycling " policy.

 

Whenever you come across a site or scheme promising you a huge return on investment in 24 hours, please run!

One question you may want to ask when offered an online business opportunity is "what product or service does the company render?". The difference between a Ponzi scheme and the multi-level marketing or affiliate programs of a company is "product and services." Ponzi schemes sites don't produce anything, neither do they sell anything nor render any service. So, how do they get the profits they promise to share with members?

Always make thorough research before involving your money in any business opportunity. Also make effort to know more about the company, the owner, and who runs the business. One can hardly know the admin of a ponzi scheme because it's fraudulent. They hide behind the mask of the website.

Founders of most legit companies involved in Multi-Level marketing or affiliate programs creates a transparent system of communication with the public. Some even travel around the world for one-on-one meetings, conference, and seminars.

In subsequent blog posts, more about this will be unveiled. Till then, learn to do a thorough research before involving your money in any income opportunity you come across.