Thursday, October 04, 2007

Money Investment sites are scams!

100% of these investment sites (quick scheme to get rich) are scams.

Why?
It's just another pyramid scheme.. at the end it will crashes and your gonna cry for your mommy!

What is Pyramid Scheme?
Taken from wikipedia

A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service

being delivered.

Pyramid schemes are illegal in many countries, including the United States, Great Britain, Malaysia, Australia and New Zealand. These types of schemes have existed for at least a century.

Models

There are other commercial models using cross-selling such as multi-level marketing (MLM) or party planning which are legal and sustainable, although there is a significant grey area in many cases. Most pyramid schemes take advantage of confusion between genuine businesses and complicated but convincing moneymaking scams.

The essential idea behind each scam is that the individual makes only one payment, but is promised to somehow receive exponential benefits from other people as a reward. A common example might be an offer that, for a fee, allows the victim to sell the same offer to other people, or receive bonuses through other people they refer. Each sale includes a fee to the original seller.

Clearly, the flaw is that there is no end benefit; the money simply travels up the chain, and only the originator (or at best a very few) wins in swindling his followers. Of course, the people in the worst situation are the ones at the bottom of the pyramid: those who subscribed to the plan, but were not able to recruit any followers themselves. To embellish the act, most such scams will have fake referrals, testimonials, and information.

Internet

In 2003, an internet-based "pyramid scam"[3] was uncovered by the FTC, where customers would pay a registration fee to join a program and purchase a package which included Internet mall and related goods and services. The FTC's complaint states that the company assured consumers who purchased the package would allow them to earn significant commissions for every WebSuite sold.

The FTC alleged that the company deceptively represented that consumers who participated in their scheme would earn substantial income, when in fact most consumers lost money in the operation, and that the defendants provided deceptive marketing material to affiliates - providing them with the means to deceive others; and finally, the company failed to disclose that a substantial percentage of participants would lose money, and that the scheme was actually an illegal pyramid.

Continue reading at wikipedia page - Link

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