I read a letter from one of the commercial banks in Nigeria advising it’s customers to leave MMM Programme because the said bank noticed that some of its customers are involved in a Ponzi scheme called MMM. Whenever I read and come across information like this, my research ability is awakened. I quickly looked for the meaning of Ponzi, just like I have looked at it so many times. Ponzi schemes in the past crashed. To quickly justify this information weather is true or false is the reason I wrote this article. What I found out and what I studied from MMM programme made to prove that MMM is not a Ponzi Scheme.
What is a Ponzi Scheme?
A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
MMM clearly state that it’s not an investment or a business. MMM is a donation platform. If you are investing in MMM programme, you are not doing the right thing. MMM does not use capital paid by new investors to pay old investors, both old and new investors pay each other. MMM programme right now is just an algorithm, just like Google algorithm. It does not receive money and it does not pay money. It does not do any business whether legitimate or illegitimate. Participants do legitimate and illegitimate businesses and use it to donate to other MMM participants. There is no central account where monies are paid into, rather participants pay each other directly.
MMM programme cannot crash but can be stopped.
Whenever the programme is stopped, some participants will be crying ( those who invested in MMM;MMM is not an investment) while majority will be rejoicing. The only regret by all participants will be that what helps people is no more.
MMM is an intelligent computer programme that is designed to survive by this input (Provide Help) and output (Get Help) for every participant. The intelligent system balances the Amount for Provide Help and Get Help by freezing, confirmed and unconfirmed orders by participants.
Without additional Participants coming into the system, the system depends on the participants to provide the needed funds to be transferred from one participant to another. Money generated by participants from fruitful, productive labour and kept as spare money will be transferred to another participant who has provided help before. It goes on like this from old and new participants.
The question many asked is; ‘where does all this extra reward (30% in Nigeria for instance) comes from’? They think Peter is robbed to pay Paul and with time, it will crash and nobody will pay Peter again. Yes, it cannot crash but can be stopped if the participants (old and new) stop donating. To answer the question where the reward (30% for instance in Nigeria now) comes from? It comes from the hard-earned money of participants from their legal, productive labour. The participants donate the reward.
There is no evidence to prove that MMM Programme is a Ponzi Scheme, rather, media houses should come up with constructive write-ups and contents to justify the name they called MMM Programme as Ponzi Scheme. I am an entrepreneur, blogger, network marketer and IT Guru. I am not writing this in support of MMM programme or against it, I am just looking for facts and figures to prove my point. If you have any prove that MMM is a Ponzi Scheme, use the comment section. I will be glad to read it. If not, write MMM, MMM, MMM in the comment section.
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