Difference Between Ponzi Schemes and Legitimate Referral Programs
Softminimal1 says "Dude I get a ref[erral] for bringing people into my bank so what is the difference?"
Softminimal1 says "Dude I get a ref[erral] for bringing people into my bank so what is the difference?"
Great post @louisthomas ! Quite controversial subject actually....I'd say almost everything in today's economy is close to be a ponzi... Where the ones on the top take advantage of the ones in the base of the pyramid... Fiat and central banking is definitely the biggest Ponzi of all! Thanks for creating always informative and original content mate! Keep it up! Your #1 supporter in Spain here! :)
I will agree on that ! So confusing of whatever economic scheme is a ponzi or legit. Besides people always throwing word Scam around like crazy making it even harder to understand . From a word for caution to a clickbait ...
Ponzi schemes offer payment based solely on recruiting. If you’re in a company where they tell you that all you have to do to make money is “Sign up a few friends, and get them to sign up a few friends” Then it’s most likely a pyramid scheme.
Referral Programs is about building a sales organization that sells a product. The ones who make the most money have the largest organizations, but it still involves selling a product. If there’s no product moving through the organization, then it’s not kosher.
Good post. I like it
hi bro.. im beginer i think this good post how to make post whit vidio??
I think a lot of the confusion comes from people not understanding the definitions of what they are talking about.
A ponzi scheme is "a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors."
In other words, there is no product. The returns to the first investors are paid by new investors. This scheme can be very successful because it can sustain itself until new investors dry up. By then, the initial investors have already made their money and they disappear. A good example of this would be Bitconnect. They claim that their product is some sort of trading bot but there is no evidence of this. If there was one, it would be a legitimate business. But because there (likely) isn't one, it is simply a ponzi scheme.
There are also "Pyramid Schemes" which are defined as "a form of investment in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones."
In a pyramid scheme, you pay the person that recruited you, and anyone you recruit pays you. Very similar to a ponzi scheme but slightly different. In a pyramid scheme you know that you only get paid if you recruit new people where in a ponzi scheme you think that there is some sort of investment going on that is generating your returns.
Referral programs are somewhat similar to pyramid schemes except that there is actually a product and (as you pointed out) the company/organization would still continue to function without new investors/customers. (Of course, in today's business world if you are not gaining new customers you are in trouble because you are always losing customers but that is different than a company that must continually grow to function ie ponzi scheme)
Hopefully that helps clear up a bit of confusion. We should always know the definitions of the words we use.
Great video especially for someone like me who are new to cryptocurrency. I really try only to go in to platforms that actually has a solid base for their cryptocurrency and also brings other values, especially content. Like Steemit and Musicoin.
Also how come and you didn't upload straight to dTube aswell?
short,useful nice video thanks for uploading.
a very good post
There will always be a GREY area...