I recently posted an article regarding what I see as dubious efforts by a certain individual to get "investors" to purchase his product (or invest in his company), and then said "investors" encourage other "investors" to do the same. The various responses and sad comments from whom I can only assume are those affected leave a bitter taste in my mouth. These folks are being robbed blind, but still do not realise it...or they just refuse point blank to acknowledge it.
So here goes, (in my opinion - on how to hypothetically create a perfect Ponzi / Pyramid scheme...) ja, I know it illegal and all that but this is for hypothetical purposes only.
Firstly you need to practice this a fair bit, this practice run would have probably already happened in 2000-2002. During this period, you would have honed your skills and determined exactly what is needed to comfortably and capably fleece people of their hard earned, borrowed or even stolen money. You would naturally probably be caught somewhere along the line and slapped on the wrist. That is unfortunately the extreme punishment dealt out for defrauding hundreds if not thousands of people in South Africa.
Now it gets really interesting, for the next 10 years or so, you search the internet high and low for similar Ponzi / Pyramid schemes - the USA has many, so start your research there, you also attend multi level marketing seminars to get the creative juices flowing. You might even present your own multi level marketing seminars one day ! You have by now done some serious homework, and realised that Ponzi is not new but it is very effective, it has been happening since around 1899 already, even if it was only named after Ponzi himself in 1920 odd. But you are after all so much smarter than someone from 1920.
And then suddenly it smacks you in the forehead like a lightening bolt, DO NOT offer your scheme to only wealthy individuals...offer it to the poor...you are after all a champion of the poor now arent you? You will naturally not refuse wealthy investors, you just wont openly encourage it. After all Barry did that and look what that got him...ja I know he got around R10 billion, but he had to flee the country now didnt he? And that would just suck man, having to leave good old SA with R10 billion in the bank.
Offer them one thing they cannot buy...HOPE. Hope for a better future, hope for a better life today, hope for food on the table, hope for money, hope for easy, easy money...
Remember that for a Ponzi/Pyramid scheme to succeed really well, you need to ensure that as the grand scheme master, you are entitled to and have direct access to the huge monetary reward being the "deposits". Your agents/underlings/recruiters/recommendors totalling about 15% of total investors income get a fair to good monetary reward, and then the remaining 85% of your investors get screwed for everything they have got.
Make your Ponzi/Pyramid returns fair, something like "profits" of 2% a day or so, but limit the withdrawal of profits period to only occur after 60 days. Almost like a fixed deposit at a commercial bank if you will - but without all that needless paperwok. The only paperwork you really want to see is a deposit slip for your scheme now isnt it? You have to "pay" this profit to your investors though, or else they are going to catch on real quick that you are scamming them. This scenario ensures that you have at least 80% of the initial amount deposited on hand after this 60 day period. Now comes the real trick though, you need to convince your investors to reinvest their 20 percent "profits", again, and again and again. Mention something like compound interest, additional earnings, super profits etc and you will have them hooked for sure.
See now you do not actually give them money back just yet, you just indicate to them that you have it available if they need it. They will tell all their family and friends what a great "investment" your scheme is/or how good your "product" is - depends on how you actually market it here, and now the money will start really snowballing. Once its really cooking, you can start actually paying out some of those 2% "profits"...for how long depends on how quick your new "investors" are growing. As long as there are new "investors" coming on board in larger numbers than yesterdays, you are doing just fine. So dont stress just yet. Remember that some of the very best Ponzi grand masters kept schemes going for twenty years before they were caught out...and yes they all got caught out eventually.
You must however keep on motivating your agents/recruiters with offers such as double commissions, free trips, maybe even a cool car to keep them working away like crazy....nothing motivates like money after all. And you have to get that first and second level agent/recruiter down to a fine art for any real growth. That also incorporate the whole Pyramid component into your Ponzi now...my oh my but we are a smart grand scheme Master now.
You will get the odd "investor" who will demand all their money back for some or other emergency situation, and this person needs to be treated like gold, as they will tell everyone they now of just how great the scheme is....they got their money back didnt they? Get ready for even more "investors" after that one worthwhile payout.
Now the most important part is you need to look like a successful businessman / woman, so act successful, be positive, be caring, be concerned with your fellow man and his most basic needs. You need to drive a really cool vehicle, stay in a great house, and indicate to all your "investors" they too can have what you have if they just follow your simple but effective guidelines. You may want to create a website or two for the ultimate "real" business look, remember to get an 086 fax to email number, but get some benign free email account like gmail or yahoo ( they are both cheap and effective) and they work fine, and have a couple of local offices setup throughout the country. Dont worry silly you do not really actually need to pay rent anywhere, just put any old upmarket adress on your websites, and have one of your agents/recruiters in the area visit "investors" in person - what fantastic customer service. And super important to remember - cell phones ONLY! You hardly want to go through FAIS and FICA just for a landline telephone number. And when SARS or even SAPS eventually catch up to you, you can just "lose" the cellphone.
...the moment you start actually start losing money you need to call it a day - you definitely do not want thousands of absolutely broke poor folk hunting you down now do you? Maybe even put in a call to the Reserve Bank yourself and get them to freeze the account, you would have already made a quick R100 million now in any case. But at least you can walk away all clean, you can even tell your "investors" dont talk to me, talk to my Reserve Bank.
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