Has your ponzi paid you today?
I've been very disturbed by the increase in so-called "profit share" sites appearing all over the traffic exchanges and also here at APSense.
Basically, these sites sell shares (which sometimes come with a nominal ad-pack or other "product" that it's claimed makes the site legal), and with each new share that's sold around 90-95% of the money is shared equally between existing share holders. These sites can be very tempting because they promise a quick return with little or no effort.
The trouble is, while the early share holders make money, this is nothing more than a money-circulation scheme. The reason they make money is because people who join the scheme later lose all the money they put in and never get anything in return. Ultimately, the scheme dies a natural death, if it isn't shut down first by the authorities and its owners (and possibly people who have promoted it) prosecuted for involvement in a ponzi scheme.
Yes, these programs are illegal in most countries.
Here's how the US government describes ponzi schemes:
"A Ponzi scheme is closely related to a pyramid because it revolves around continuous recruiting, but in a Ponzi scheme the promoter generally has no product to sell and pays no commission to investors who recruit new "members." Instead, the promoter collects payments from a stream of people, promising them all the same high rate of return on a short-term investment. In the typical Ponzi scheme, there is no real investment opportunity, and the promoter just uses the money from new recruits to pay obligations owed to longer-standing members of the program ... both pyramid and Ponzi schemes are illegal because they inevitably must fall apart. No program can recruit new members forever. Every pyramid or Ponzi scheme collapses because it cannot expand beyond the size of the earth's population. When the scheme collapses, most investors find themselves at the bottom, unable to recoup their losses."
To read the full FTC statement regarding pyramids and ponzi schemes, visit this website: http://www.ftc.gov/speeches/other/dvimf16.shtm
I don't claim to be totally innocent of involvement in ponzi schemes. Some years ago, I was caught in the collapse of 12DailyPro and the paid-to-surf industry. I witnessed the suffering of family and friends who I had introduced to the scheme, so I have personal experience of how these sites wreck lives.
Sadly, the same defensiveness and anger that became common in those days is starting to appear now. Today, I received an abusive email from a member of my traffic exchange because I had suspended his profit share site. Every day I see people attacked on networking sites and traffic exchanges for pointing out the truth about these ponzis.
If your ponzi paid you today, congratulations. But try to think about the people who it won't be paying tomorrow.
Basically, these sites sell shares (which sometimes come with a nominal ad-pack or other "product" that it's claimed makes the site legal), and with each new share that's sold around 90-95% of the money is shared equally between existing share holders. These sites can be very tempting because they promise a quick return with little or no effort.
The trouble is, while the early share holders make money, this is nothing more than a money-circulation scheme. The reason they make money is because people who join the scheme later lose all the money they put in and never get anything in return. Ultimately, the scheme dies a natural death, if it isn't shut down first by the authorities and its owners (and possibly people who have promoted it) prosecuted for involvement in a ponzi scheme.
Yes, these programs are illegal in most countries.
Here's how the US government describes ponzi schemes:
"A Ponzi scheme is closely related to a pyramid because it revolves around continuous recruiting, but in a Ponzi scheme the promoter generally has no product to sell and pays no commission to investors who recruit new "members." Instead, the promoter collects payments from a stream of people, promising them all the same high rate of return on a short-term investment. In the typical Ponzi scheme, there is no real investment opportunity, and the promoter just uses the money from new recruits to pay obligations owed to longer-standing members of the program ... both pyramid and Ponzi schemes are illegal because they inevitably must fall apart. No program can recruit new members forever. Every pyramid or Ponzi scheme collapses because it cannot expand beyond the size of the earth's population. When the scheme collapses, most investors find themselves at the bottom, unable to recoup their losses."
To read the full FTC statement regarding pyramids and ponzi schemes, visit this website: http://www.ftc.gov/speeches/other/dvimf16.shtm
I don't claim to be totally innocent of involvement in ponzi schemes. Some years ago, I was caught in the collapse of 12DailyPro and the paid-to-surf industry. I witnessed the suffering of family and friends who I had introduced to the scheme, so I have personal experience of how these sites wreck lives.
Sadly, the same defensiveness and anger that became common in those days is starting to appear now. Today, I received an abusive email from a member of my traffic exchange because I had suspended his profit share site. Every day I see people attacked on networking sites and traffic exchanges for pointing out the truth about these ponzis.
If your ponzi paid you today, congratulations. But try to think about the people who it won't be paying tomorrow.
17 people like it
Comments (28)
Cindy Bolley
16
HHCTB?
@William... What a great analogy!!
I can just picture that video now
Gotta love it!!
Cindy
William Hooper
5
I totally agree with this. Make sure not to join those sites that will most likely just take your money and give you nothing for it.
Would you buy a mud clump if I told you it was a cash cow? What if I made a video about it? That mud clump is looking more like a cow now :P
Make sure you know what you buy :D
Cheryl Baumgartner
12
Medical Billing/Coding/Insurance
They come up they just use the Shakespeare approach, A rose by any other name is a carnation or a daisy....
It's still a flower folks don't care what you call it.
Cindy Bolley
16
HHCTB?
As long as we are fessing up
I was involved with AdSales Daily.
But since I am a very CHEAP person
I only lost $25.00.
I knew several people who put in thousands.
Another couple were in the middle of mortgaging
their house to put in money.
Desperate people do desperate things.
I am sure it all seemed like a good idea at the time.
I must say... I have not seen many offers lately
for those silly gifting programs.. Thank Goodness
Or perhaps I have just been missing them
Cindy
Dave Gilbert
7
Web Entreprenuer
@ppcheryl63 As an Ex police officer you have probably seen more of the pain and suffering caused by fraudulent activity than most Cheryl so it amazes me more people don't listen to your sound legal opinions
Cheryl Baumgartner
12
Medical Billing/Coding/Insurance
@Dave You know if they get paid it's not a scam. I would love nothing more than to see the FTC, SEC and Star Attorney Generals Throw the book at everyone of those who use that as a defense for promoting scams. And make it relative. The more you got paid, the harder they throw it!
Dave Gilbert
7
Web Entreprenuer
Most don't realize the laws pretty black and white when it comes to Fraud and scams if you profit from promoting the scam then your an accomplice and can suffer the same penalties as the originators of the scam
Marko S.
11
Web Presence Provider
Hm...I think more than 90% of people who joined that, so called ***bux or something know that they're ponzi or pyramid schemes....
Cheryl Baumgartner
12
Medical Billing/Coding/Insurance
More importantly than see it, take heed to it.
Sue and Shawn Kelly
8
List Building Experts
The sad part about it is that many people who have been out of work for a year or more fall for them due to utter desperation. I hope many see your information so they can recognize the difference
David Mc....
4
Ya i know about these schemes. avoid them like the Plague. Good advice !
Patsy j Payne
8
konnektions konsultant
I thought I was a Lone Star. I'm glad I'm a member of an ethical team of people.
Paula van Dun
16
Retired
@Emma I do the same on Sweeva and Surfvo. Profitsites and Kooday and other scam sites thumbs down!
James Bonham
9
tweetsmaster
100% anti SCAM I trust SafeAdZone also look to eagleresearchassociates.org for updates and info
Emma Padilla
7
Affiliate Marketer
I'm with you Louise! I admire you for having the guts to speak out about these disgusting, scamming sites! Thank you for banning them on Hits Booster Pro (which is one of my favorite traffic exchange)
Every time I see these crooked sites on Sweeva I give them the "thumbs down" and write the reason why. My sons and I also lost money with these sites. They especially like to crop up when the holidays are near.
I don't care who gets angry about it, I will continue to speak out about the
Irene Blackett
8
Marketing Tools And Training
Ty for this detailed information.
Louise Venison
7
TE owner, affiliate marketer
I would like to see AlertPay refusing to provide their service to these programs now. The majority of people who want easy money like the convenience of being able to use AP. If AP dropped the programs, it would make it a lot less convenient for people, and even if the programs didn't die a natural death, they'd be reduced to insignificance. AP is making it as easy for ponzis to operate now as StormPay made it back then, and it's making me nervous.
Pete Balasch Jr.
14
Internet Marketer Pod caster
12dailypro Was a Total Mess and Peoples Payment processor Accounts were Frozen. I hate to see this happen to folks again So think Twice before you join one of these Kinds of programs. Do you really want your Alert pay Account to be Frozen I bet you it will happen.
Ahmed Uzair
7
Web Designer and Internet Marketer
I agree with you louise, many unprofessional people jumping into internet marketing because of recession, they just want to earn money, from where and how that's not a matter for them..
Patsy j Payne
8
konnektions konsultant
I too fell for 12dailypro. I lost about $25, I was very fortunate. You'd think I learned my lesson,NOPE, I fell again. Oh well, second time is the charm. I had the naive to believe that the law would protect us, Haa.