Thread: What is a Ponzi Scheme? Find Out Here

Take a look at this quick 10 minute video to find out:

Originally Posted by oldfriend

Take a look at this quick 10 minute video to find out:

Congratulations on a well presented video "oldfriend". I am glad that you have taken a stand with RS members who hope to help to bring these programs down. We are a small group but it is great to see the drop in traffic that we have caused to scam programs like BannersBroker and ponzi promoting web sites like scam.com, adlandpro and TalkGold,

Well done presentation!! Thank you for doing this and joining in the fight to expose these schemes.

Thanks for the kind words, everyone!

I'll be getting more on here very soon.

I just like the squirrel avatar. lol

LOL - That's squirrel detective to you, Whip.

Originally Posted by oldfriend

LOL - That's squirrel detective to you, Whip.

Originally Posted by Whip

I just like the squirrel avatar. lol

It's the 2nd best avatar here at realscam

Excellent video. Thank you.

One of the biggest difficulties for people to understand, when they are recruited into ponzis is the reason that they will fail. The concept of finding an indefinite number of new investors and the difficulty of doing so is always glossed over by the promoters. " You find three who find three,.." etc etc. People don't appreciate the speed with which the ponzis grown and how many people are really needed for them to continue. Three grows into thousands and thousands grow into tens of thousands far quicker than the people new to them understand. With the exponential growth of members, the quantities of money required to pay them grows equally fast. A business has to generate one heck of a profit very fast to pay out that kind of money.

If you are not sure if something is a ponzi, ask about the outside income required to pay back members. It will have to be at least as big as the amount of money due to them, without being affected by the money brought in by new members. Ponzi did try to bring in outside income from bank loans, but it only lasted a short time before there was a shortfall between his liabilities and his assets. Some ponzis have no outside income and lie to members. Some don't even bother to lie. Look at the product or service offered by the business and ask yourself if it has sufficient intrinsic value to generate enough profit to pay out the ever expanding number of liabilities to members. It is rare, if not impossible, that you will find any business with a product or service sufficiently profitable to pay out the massive sums required by the ponzis that proliferate the internet in disguise as "work at home businesses". Let's face it, if someone has an idea that is so good that the business generates that kind of profit, why on earth would they want to pay it out to an indefinate number of members. They would do as all successful businesses have done. They would find legitimate start up capital run their business for profit.

Ponzi founders and their collaborators do not run businesses in order to share the wealth. They do so to share the pain.