Nov
Happy Monday!
So a few weeks ago I went on a little rant with my blog post about all the latest wave of ponzi schemes that had been popping up in Sweeva. In case you missed it, here’s the link:
http://www.getrichwithjerry.com/ponzi-scheme-frustrations
Since then I have made it a point to call out the scam sites whenever I see them. It’s been a lot of fun and I think it has put a spotlight on a lot of the people promoting this junk. I suspect most of the people promoting these things are ignorant to how bad they are but at least I think people are starting to think twice before investing their money in them.
This all started with with the “profit sharing” scams which are now popping up all over the place. However, now it appears that “doublers” are starting to make a come back.
Doublers are nothing new. In fact they were quite the rage a few years ago.
Here’s how a doubler works. It’s basically a straight line matrix. In a perfect system you pay your entry fee and you receive a position at the bottom of the matrix. Every time 2 new people join the matrix the person at the top receives double their money back and is removed from the list.
So if you are in position number #1, you double your money when spots #2 and #3 are filled. The person in the #2 spot doubles their money when positions #4 and #5 are filled.
Easy right?
These things move like crazy when they first launch because everybody wants to be in the top spot. However things quickly slow down as the number of members needed to get paid gets higher and higher.
The person in the #50 spot needs to wait until member #100 joins to double their money. The person in the #100 spot needs to wait until member #200 joins. #1000 needs to wait for #2000.
Do you see where I am going with this?
I said this is how it works in a perfect system. In reality doublers are never a perfect 1:2 ratio. The people running the site need to get paid too, right? Then we add in affiliate commissions to get people to promote these sites and it really ends up being closer to a 1:3 ratio.
This is what is called a money game. If you join early you can get lucky and make money from the people who join after you. However if you join too late you may find that you will never get your money back because all doublers eventually stall out.
Why do doublers stall?
We already know it is better to join a doubler right when it launches. Well the people running these sites know this too. There is no reason for them to continue promoting a doubler that already has a few thousand members in it when it is far more profitable to launch a brand new doubler. This happens over and over again.
Most of the members know that doublers eventually stall out too. Would you rather invest your money into a doubler that already has a few thousand members or wait and join that brand new doubler that is launching tomorrow?
I used to follow doublers quite closely when they were popular a few years ago. I have never seen a doubler last for more than 1 month before stalling out. I’ve seen a couple of really popular doublers last a few weeks. In reality most doublers only last for a few days. I’ve even witnessed more than a few that only lasted a few hours before stalling.
When a doubler stalls the vast majority of members will never get their money back. Yes, some people will make money but they do so at the expense of many others. This is a classic ponzi scheme and is considered quite illegal.
I’ve only seen two new doubler sites but you can bet your money that over the next few weeks we are going to see dozens of new ones being launched. Lots of money is going to be changing hands. The owners of these sites are going to make a killing while thousands of people are going to lose their hard earned money.
So to summarize… doublers are bad, mmmkay?
Just say no to doublers.
Now, how long do you think it will be before “randomizers” make a come back?
