Pyramid Scheme Dissected
Let's look at a hypothetical pyramid scheme, with respect to how it is claimed to work. Suppose the list included in this scheme contains six names. You are to send a dollar to each person listed, remove the top name, move all the other names up one position, and send it on to more people. Let us assume, that you get ten people to join, and each of them gets ten people, and so on.
As the pyramid grows below you, here's what supposedly happens:
1. The first level below you has ten people. They each send you a dollar, so you collect $10.
2. The next level has a hundred people. (Each of your first ten gets ten more.) You collect $100.
3. The next level has a thousand people. You collect $1,000.
4. The next level has 10,000 people, so you collect $10,000.
5. The next level has 100,000 people, so you collect $100,000.
6. The next level has 1,000,000 people, so you collect $1,000,000.
7. At this point, your name drops off the list, and you collect no more.
So, for your initial investment of $6, (one dollar to each of the six people above you), you collect a total of $1,111,110. There are, of course, many variations on this concept.
It's very easy to understand how this kind of scheme should work. It all seems so simple and so obvious.
It is, unfortunately, somewhat more difficult to understand why this kind of scheme does not work, and why it is unethical and dishonest, and, in most cases, very much illegal.
For your eyes only (one of the most prominent Ponzi Scheme on net)
Turn $6 into thousands
SIMPLE STEPS INSTRUCTION STEP 1: -I have done this myself Send, through PayPal, only $1.00 to each email on the below list by going to http://www.paypal.com/, log in, and click on the tab "SEND MONEY", then just put in the email that's all!. Make the subject of the payment "Email List" and in the comments, write "PLEASE PUT ME ON YOUR EMAIL LIST." What you are doing is creating a service by this and best of all you are not giving your address to anyone you do not know. THIS IS ABSOLUTELY LEGAL!
The email list:
1) aaa...@usa.com
2) bbb...@hotmail.com
3) ccc...@hotmail.com
4ddd...@hotmail.com
5)eee...@hotmail.com
6) ffff...@hotmail.com
STEP 2: -::I'm just finished doing this::- Now take the 1st email off the list that you see above, move the other addresses up (6 becomes 5, 5 becomes 4, etc.) and add YOUR email address (the one used on your Paypal account) as number 6 on the list.
STEP 3: -::I'm doing this now::- Change anything you need to, but try to keep this article as close to original as possible. Now, post your amended article to at least 200 newsgroups, message board. (I think there are close to 32,000 groups) All you need is 200, but remember, the more you post, the more money you make - as well as everyone else on the list!
The truth is, this scheme does not work, except for those who get in at the first few levels. The vast majority of participants in such a scheme will only lose their original investment, and make no profit at all. In a moment, I'll get into why this is so; but because it is so, every instance where a person is induced to join such a scheme, based on the promise that he will make a profit by participating, a fraud has been committed.
Nearly every nation, and every government, has laws against fraud. Most have specific laws against pyramid schemes, Ponzi schemes, and similar operations.
Even if the particular variation in which you might participate happens to avoid running afoul of the laws which are relevant in your situation, I ask you to consider that by participating in such a scheme, you would be engaging in something that is dishonest and unethical, and which is very unlikely to make you any profit.
You will get more details down here, thanks to them for trying make the net a safer place.
