It is not a SCAM because nobody makes money in SCAMS ??

The title of this brief article is based upon a statement I read recently.

It was related to a post in defence of a very popular and long running ponzi scheme. I have no need, or desire to discuss any individual system here.

I do, however, wish to discuss the title in a very general sense.

I will be discussing it without reference to empirical data.
I will be discussing it based upon my opinions which are in turn
based upon my own observations.

When I refer to my observations, I include sources from which I have learnt,
along with personal experience.

This discussion will likely be too simplistic and generalised to warrant specific reference. Sorry 'bout that :)

Within the framework of the disclaimer above, here is my opinion on the subject line of this article.

The proverbial 'can o' worms' exists simply with the mention of SCAM and ponzi scheme.

However, please remember this is unsubstantiated opinion ;)

I will clump ponzi schemes under the broad heading of SCAMs for simplicity.

Ponzi schemes operate on the precept that people do indeed make money.
Sometimes a very great deal of money. The more money the early participants make often has a direct effect upon the longevity of the schemes.

This works because of some fundamental facets of human nature.

Please envisage a simple scenario.

Bildo (wun of my generic nondescript characters) comes across this site
which promises daily income..

He is assured that no work is required on his part.

He decides to try it.
Bildo is somewhat dubious, a little unbelieving. A small sum is committed.

However, the promised income actually appears in his account and the system is working fine.

He is leveraging up this wonderous income and he is mesmerised by the steadily increasing balance accruing in the back office.

He is somewhat loathe to actually redeem his stash in the back office as it will negatively impact this easy income source.

Now bildo has several options available to him. He can sit and wait and leverage and wait and leverage...

until he has a sum that he considers worth withdrawing..

That was one option, another is that he promotes the system for direct sales commissions.

He is vindicated by the very real cash he is either accruing or has deposited into an account available in the back office.

The tales of his financial windfall grow, and the system grows and grows and grows.. well you get the picture.. it gets REALLY big!

The system even helps the recent participants to get started so they too can be mesmerised by cash figures appearing daily in their accounts.

By crikey!  I almost sold myself on this scheme!

There are some things Bildo has apparently not considered.

What is bildo actually receiving for his, by now steadily increasing contributions?
He receives nothing other than the opportunity to collect a portion of the money
being either contributed or resubmitted to the system.

Is there something out of order with this scenario?

Is bildo happy? - quite probably.. it appears he is in a fortunate position.

Perhaps bildo has a conscience.

Perhaps he truly believes that the ever increasing number of hopefuls now joining
because of the tales of easy wealth that are growing in frequency all over the web,
will enjoy the same success as he himself has.

The numbers are getting quite hugemongous now.
Income disbursements become more erratic.
Systemic improvements are held to blame.
Physical payment windows open but are rapidly closed.
Regular payments are required to enable payments.
Fixed fees that go somewhere for some product or benefit that
bildo cannot clearly define.

He does see the numbers in his back office incrementing steadily however!

While bildo's continued success seems less certain now, I shall conclude.

The initial participants in these schemes are almost guaranteed to make money, that is a part of the system.

The illusion of lasting success then attract the masses who willingly part with their cash, often hard earned and ill-advised for speculation, in the hope of improving their ailing financial situation.

By this stage, the big players know the time has come for withdrawal.
The large fundings of accounts diminish or cease at the top levels as they simply
wait for the pittances of the masses to flood into their coffers.

There you have it.
A taste of my opinion.
Certainly not a sweet taste..
I do hope that it was not a bitter taste :|

Thank you for reading :)