Do you participate in any Ponzi schemes?

Question by krazykyngekorny: Do you participate in any Ponzi schemes?
Chain letters, e.g. Also, multi-level marketing.

Suppose you pay $ 20 to join. For every new member you sign up, you get $ 5 back. That means, the head of the “company” keeps $ 15 for each new signer. By signing up four, you get your investment back. More of your “friends”, and you make a profit. The person in control gets filthy rich, at the expanse of all the “investors”.

If enough people “invest, the pool runs dry, and new “investors are left holding the bag.

MLms, as they are called, offer some “item of value”, usually a MLM manual, xeroxed by the scheme operator, to make it legal. Under the law, if they offer some “item of value”, that’s OK. So they hang a price of $ 39.95 on the manual, then, make it part of the “membership package”. Thus, the law can’t touch them. The operator gets rich, and a lot of phish pay for his retiremenmt.

Best answer:

Answer by Rick B
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