0
Say you tell ten people that if they give you $1,000 a piece, you'll give them a rate of return of 10% per month. They do.
Now you have $10,000. You set $1,000 aside, and promptly spend the $9,000 on yourself.
After the month is up, you give each "investor" $100. They are all happy, as they don't know their original principle is gone. They don't ask for it back as they wish to keep making that 10%. In fact, they are so happy, that each of their ten friends wishes to invest.
So now you get $1,000 a piece from 100 people, and have $100,000. You can easily afford to pay another $1,000 to the original ten next month. And you can afford to pay another $10,000 in "interest" to that secondary set of "investors" next month.
Leaving you with another $89,000 to spend on yourself.
So far so good, as long as two things happen. One, you keep getting more suckers to invest. Two, you don't have too many people ask to cash out.
What else can I help you with?
What is a Ponzi scheme?
A 'Ponzi scheme' is a scheme in which investors are promised extraordinary returns, but meanwhile these returns are simply paid out from the inflow off new funds from new investors in the scheme. This is much like a pyramid scheme and results in an eventual collapse in which investors lose most -- or all -- of their money.
Why don't investors recognize a Ponzi Scheme?
A good Ponzi Scheme has a few things to draw you in1st A good return (usually more than "market") and good operators make the promised return high enough to generate "BUZZ" but low enough not to appear unreasonable2nd Others have invested (joined) and are receiving their returns as promised (A key feature of the Ponzi)3rd They are normally fronted by good salesmen4th and most important they have a good cover story to explain the high returnsEG: If i promise 100 % return per annum by making and selling chocolate ice cream in Nunavut during winter I am unlikely to get many investors (suckers in a ponzi scheme)OR if I offer 100% per annum by buying and selling Natural gas, or oil or gold and present a believable front I may be able to generate the needed "BUZZ"The Ponzi Scheme operators are very often not found out unlessA: Some one gets suspiciousB: The Scheme finally collapses
Is the freebie money printer scam a legitimate way to make money?
No, the freebie money printer scam is not a legitimate way to make money. It is a fraudulent scheme that promises easy money but ultimately results in financial loss for participants.
Is World Ventures a pyramid scheme?
Doing research as opposed to providing merely my "take" or what I think, I can confirm that it is not. A pyramid scheme does not sell a product and the people at the top always make more money than the people below them. Neither is the case with World Ventures. They sell a product and every individual member has every opportunity to earn more than the person that signed them up. By definition, World Venture's model is not a pyramid scheme. Let's provide facts as opposed to our gut feelings. Answers.com deserves at least that.
How do people make money in Spain?
There are several ways people make money in Spain. Some people are street vendors, workers in stores and restaurants, people are farmers, and people own businesses.
What is a Ponzi scheme?
A 'Ponzi scheme' is a scheme in which investors are promised extraordinary returns, but meanwhile these returns are simply paid out from the inflow off new funds from new investors in the scheme. This is much like a pyramid scheme and results in an eventual collapse in which investors lose most -- or all -- of their money.
Is Ponzi scheme a theft?
A Ponzi scheme works by misleading investors into an investment that promises unusually high returns. Then, as new investors enter, their investment is paid as a return to the investors before them. Because the only money comes from the investments of those who join later, someone will end up not getting any money back. The scheme is designed to make high profits for the promoter, who will usually vanish with the money after a time. However, the scheme may collapse for lack of money or law enforcement may intervene before this happens.
How can you identify a pyramid scheme?
A pyramid or Ponzi scheme uses money from new investors to pay "dividends" to the existing investors. If you have to recruit new "investors" to make money, it is a pyramid. You get in by paying someone upstream and are paid by the people you recruit, usually sending some of the money up to the person who recruited you. Legitimate multi-level marketing is similar, but different because you have to sell something but can make more money by recruiting people to work under you.
Why don't investors recognize a Ponzi Scheme?
A good Ponzi Scheme has a few things to draw you in1st A good return (usually more than "market") and good operators make the promised return high enough to generate "BUZZ" but low enough not to appear unreasonable2nd Others have invested (joined) and are receiving their returns as promised (A key feature of the Ponzi)3rd They are normally fronted by good salesmen4th and most important they have a good cover story to explain the high returnsEG: If i promise 100 % return per annum by making and selling chocolate ice cream in Nunavut during winter I am unlikely to get many investors (suckers in a ponzi scheme)OR if I offer 100% per annum by buying and selling Natural gas, or oil or gold and present a believable front I may be able to generate the needed "BUZZ"The Ponzi Scheme operators are very often not found out unlessA: Some one gets suspiciousB: The Scheme finally collapses
Is Genesis Land Development corp a scam. I know of people who have invested in this company but it seems really shady and more like a ponzi scam than a legitimate land development company?
I am pretty sure this is a ponzi scheme. Please do not invest with Genesis Land Development Corp. I invested with them years ago and cannot get my money back. Reason why Genesis is a ponzi: This company gathers money from investors and buys land to develop. However, their they buy agricultural land that has to be rezoned to commercial for developing. The big problems with this are: 1) Rezoning can take several years 2) Even if the land is rezoned and developed, there is no guarantee that Genesis can make a profit. 3) If an investor wants to take their funds out of their investment with Genesis, they must find their own buyer and have to do all of the legwork to legally pass over the investment to the new sucker. 4) Rezoning may never happen, and therefore, Genesis will legally be able to keep your money indefinitely. Brilliant ponzi scheme. Please stay away!!
Are HYIP's a good way to make a short term investment?
Absolutely not. HYIPs, or "high-yield investment programs" are essentially Ponzi schemes which pay old investors with investments received by new investors. Eventually as people stop joining the scheme, the money runs out, and you lose everything. Think Bernie Madoff or Tom Petters and RUN AWAY!
What are some get rich quick schemes that work?
A few get rich quick schemes, that actually work, are; marrying into money, buying a lottery ticket and starting a ponzi scheme. The ponzi scheme is really only effective if you are the one who starts it.
Is GO Global Functioning as a Ponzi Scheme?
No, GO Global is not at all functioning as a ponzi scheme. The assertion that GO Global runs like a Ponzi scheme is completely false and deceptive. These charges, which have regrettably acquired currency in internet debates, unfairly throw a negative light on a business that actively works to improve communities via the power of education. It's crucial to dispel these myths and make clear GO Global's true nature and influence. The term "GO Global Ponzi scheme" making its way into online debates emphasizes how crucial it is to evaluate the material we come across. These kinds of unsupported statements can quickly damage the reputation of a business that is genuinely committed to having a beneficial impact. The main goal of GO Global is to aid in people's personal growth and development by providing a wide range of educational opportunities, including courses in leadership development, personal development, and digital marketing. It's critical to understand that false information and rumors can harm a company's reputation as well as the advancement of those who want to advance their education. It is possible to obscure the true value that GO Global offers to its users by continuing to level unfounded claims of a Ponzi scheme. In an era where having access to high-quality education is crucial, it's crucial to create an environment in which platforms like GO Global can flourish. We can make sure that people have the proper information they need to make educated decisions about their educational pursuits by eradicating false information just like a ponzi scheme and emphasizing the real good impact that GO Global has on learners around the world. GO Global is categorically not operating as a Ponzi scam, to sum up. The dissemination of this false information serves as a reminder of the value of critically analyzing sources and comprehending the genuine purpose of websites like GO Global, which are committed to advancing education, individual development, and community empowerment.
Do the tax payers owe the people who lost money from bernie madoff scheme?
Not yet. But Obama the socialist might find a way to make it happen.
Why do they make ponzi schemes illegal?
Because thse ponzi scheme operators receive Funds from A, give it to B, against getting fund from B, they extend the same to C and the process goes on. Once there is any bottleneck or dearth of funds from the investors, the whole system falls like card house. The Operators then have no option left than to close down their shutters, ruining the poor small investors the maximum. From this point of view, ponzi schemes are declared illegal all over the world.
What do iBeats by Dr Dre sound like?
Sound likes a lazy scheme to make money.
Is the freebie money printer scam a legitimate way to make money?
No, the freebie money printer scam is not a legitimate way to make money. It is a fraudulent scheme that promises easy money but ultimately results in financial loss for participants.
