PLEASE NOTE:

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

 
Tigra
 
Comments: 4
Article views: 1230
 
 
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.

 

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
Comments have been closed for this article.

Read more from our Users

Submitted by
Lyndsy Gopaul
The struggle of a single mother

To choose the life of being a single mum is the hardest job and the biggest sacrifice a woman can make. Read more...

0 comments 42 views
Submitted by
Hennie
Clamour for farmland will sink us...

The ANC government’s pre-occupation with the redistribution of land has taken its eye totally off the ball. Read more...

0 comments 20 views
Submitted by
Mlibazisi Jeffrey
Rise of Trump, nationalism and po...

The placing of people on a political, religious and ideological spectrum has resulted in the rise of "absolute positioning". Read more...

0 comments 5 views
Submitted by
Victor van Heerden
Jacob Zuma statue - Don’t cry for...

Therefore the epitaph at the bottom of this magnificent statue will read: Please forgive me, but don’t cry for me South Africa - even though I have failed you all - signed President Jacob Zuma. Read more...

0 comments 11 views
Submitted by
Michael Mondli Hlophe
Kasi Mlungu saga very confusing

Some people have been very positive about the young white woman that has very close ties to a township and its residents. Some have been negative about her making money off our African cultures Read more...

0 comments 19 views
Submitted by
Odell Coetzee228
The Dark Horse: Brian Molefe

While every South African could predict how the economy and the world would respond to news of a new finance minister, there is one thing about Zuma we must never forget – he is a political survivor. Read more...

0 comments 36 views
 

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 Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2017 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.