“INVEST 50K AND GET 100K IN 12 HOURS!!!” Have you ever gotten this kind of message? Why? Don’t worry, we will be discussing how Ponzi schemes work. In the world today, there are probably a lot of broadcast messages you get on your different social media platforms like Facebook, Twitter, and most especially, WhatsApp.
There are almost always asking you to invest 50k and get 100k. At times it becomes, “INVEST 100K and get 200K in 24 HOURS”. You might be wondering what happened to MMM a few years ago and you just can’t find a way around it, reading this will help you out.
You need to understand that Ponzi schemes are deceitful investment organizations that assure you that you are going to get high and really high rates of financial returns within a very little time. Most especially, they’ll promise you your profitable returns within hours.
Ponzi schemes are known for their evergreen promises of great unbelievable returns with little or no risk at all. I can say they have what is best described as sweet mouths. Yes, they do! If they don’t, how do you explain how Charles Ponzi pulled such a great trick on a lot of people in New England back in the 1920s.
However, it’s quite simple! Here’s what they do. They create very unbelievable financial offers and probably hire badass copywriters to help them storm your mind when their art of emotional persuasion. I know you’re imagining and guessing how they make that happen so miraculously. Let me show you how then.
What every Ponzi scheme does is that they do everything possible to create returns for people who invest quite early by actually bringing in more members and that’s the key! Recruiting more members.
This is quite similar to another type of scheme called the Pyramid scheme. But similarity doesn’t exactly mean they are identical or exactly the same right? Let’s see what a pyramid scheme is all about.
Pyramid schemes endeavor to produce monetary income just by recruiting fresh investors. People always confuse the Ponzi schemes for the pyramid schemes and that’s because the differences between them both are not much. Their similarity is so much that people misunderstand them both for each other. However, here are a few things that differentiate them from each other. Shall we?
Differences Between Ponzi and Pyramid Schemes
1. What all Ponzi schemes want is just for you to invest. You won’t do anything more other than just sending over the money. After which, comes the cliche promise of getting a whole lot of returns bountifully back within a few hours or at most within a few days. Pyramid schemes are however not like this. Let’s check them out.
2. Pyramid schemes however give you an offer to make the money all by yourself, on a platter of gold. Though, this demands a little bit of extra work. All it takes is just for you to purchase the rights to launch a business organization.
Afterward, you can start recruiting more members with a common interests who actually are like yourself. Once in a while, the newbie or fresh member will pay the recruiter a percentage of their earnings.
Yes, I’ll agree with you that the difference looks quite very slim. Nonetheless, it is of utmost importance to always recall that very unlike these pyramid schemes, Ponzi schemes have always been known to be very illegal. This is a fact almost everyone in the world is aware of, just like COVID-19.
A few legal business organizations, for example, The Pampered Chef, are strongly based on the pyramid scheme. But on the obvious contrary, Ponzi scheme inevitably depends only on securities dupery. It strongly includes utilizing the act of fraudulence as a medium to persuade people to invest amounts of money that will not be invested in reality.
As always expected, the promoter of any Ponzi scheme will assure you a very high monetary bring-back reward within a few hours. Well as said earlier, no concrete product or service that can be rendered for a required payment is actually being sold. So, the main point that is emphatically stressed in every Ponzi scheme is acquiring new members or investors.
I’m glad you now know what to say whenever someone asks you the question, “How do Ponzi schemes work?” These in mind will help you go a long way in avoiding scammers and fraudsters.
As always expected, the promoter of any Ponzi scheme will assure you a very high monetary bring-back reward within a few hours. Well as said earlier, no concrete product or service that can be rendered for a required payment is actually being sold. So, the main point that is emphatically stressed in every Ponzi scheme is acquiring new members or investors.
I’m glad you now know what to say whenever someone asks you the question, “How do Ponzi schemes work?” Having these in mind will really help you go a long way in avoiding scammers and fraudsters.
