PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Tigra
 
Comments: 4
Article views: 1206
 
 
Latest Badges:

 
View all Tigra's badges.
 

Drive-a-new-car - has it devolved into a pyramid scheme?

05 May 2014, 19:15

Definition of a pyramid scheme: A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public. (Source: Wikipedia.org)

When the business model was first created, it was under the assumption that they could get all sorts of companies to advertise on the back of people’s vehicles.  Unfortunately this fell flat and there were too few companies willing to take part.  At first I did occasionally see vehicles with adverts OTHER than advertising themselves, but in the past year it’s declined to such an extent that I’ve seen only one! 

To be clear – this company does have 2 options available to buyers.  The one is where you’re paid monthly for advertising and the other is where you only get paid something when someone else buys a vehicle using your code.  The latter option is sustainable – because each car sold generates a profit which is used to pay participants.  The first option however is not – because participants are supposed to be paid each month whether anyone bought cars through their advert or not.

This is why I think that they’ve recently been forced to reduce the amount they pay out to participants who bought using the unsustainable option – using a loophole they seem to have put into their contracts to allow them to do so.  They can simply no longer afford to repay what they used to since it seems that their sole source of income is derived from the profit of the sale of cars to participants.  Is this a signal that the scheme is close to crashing? 

If you’re currently a participant, I advise you to start preparing your financial situation so that you can afford the entire car repayment amount on your own – or run the danger of having your car repossessed…

Disclaimer: This article is an opinion piece and as such I welcome anyone to try and change my mind!  But please – emotive responses won’t do it, verifiable facts might.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Aurangzeb Thabethe
EFF and its tactics

The events inside the parliamentary corridors weeks ago must worry all of us.  Read more...

33 comments 1872 views
Submitted by
Abioye Olufemi
The absolute way to take Christma...

As Christmas is coming soon, I am prompted to write this Christmas article for all of us here at News24. Read more...

4 comments 273 views
Submitted by
goldeelocks
Phiyega.....SAY WHAT?????

Clearly the Honourable Minister has abrogated the duty of the SAPS to protect the citizens of this country! What then is the purpose of the SAPS?  Read more...

9 comments 668 views
Submitted by
Paulus
Genealogy of Jesus, and the probl...

The new testament writers were so kind as to leave 2 genealogies of Jesus for us to peruse, both of his father. Read more...

152 comments 1162 views
Submitted by
Lee Grandmaison
Everyone is entitled to their own...

"Everyone is entitled to their own opinion." If you've ever seen or been in a debate, on or offline, you've heard this phrase quite a bit. Read more...

54 comments 496 views
Submitted by
johan609
South Africa heading South

We need to speak up. We need to take a stand. We need to take action. Read more...

25 comments 2194 views

Jobs in Cape Town [change area]

Jobs in Western Cape region

Compliance Officer

Claremont
DAV Professional Placement Group

Recruitment Consultant

Cape Town
Callforce Direct
R10 000 - R12 000 Per Month

Driver Code10

Cape Town
Ubusha Recruitment
R9 500 - R12 000 Per Month

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.