Between the PONZI, MLM AND RGM schemes

Between the PONZI, MLM AND RGM schemes

You may have heard the term “Ponzi scheme” or “pyramid scheme”. The latter is actually a “derivative” of the Ponzi scheme. You may also be familiar with the term “Multi-Level Marketing” or MLM. But you are very likely not to know this new term: RGM ( Refer & Get Money ) . What are the three terms really? Let’s discuss together.

Ponzi Scheme

This model scheme is named according to the name “creator”, namely Charles Ponzi. Ponzi was born in Italy on March 3, 1882 under the name Carlo Ponzi. He also has an alias, including Charles Ponci, Carlo and Charles P. Bianchi. “The successor” is quite a lot in Indonesia. How to recognize it is easy: they usually offer “bombastic” benefits, asking you to recruit customers and certainly not registered with OJK or Bappebti.

Charles Ponzi aka Charles Bianchi aka Carlo Ponzi aka Carlo when photographed by the police after his surrender

His name became famous in the early 1920s after he moved to the United States, but unfortunately he was famous for the fraudulent scheme he was running. We are now familiar with the name of the “bulging investment” scheme. What he offered was a philatelic product called the International Reply Coupon (IRC), also known as the postal reply coupon.

IRC itself is a coupon issued by the postal service of members of the UPU (Universal Postal Union) to facilitate the delivery of stamps in response abroad. The coupon will then be exchanged for stamps at the post office of the destination country of the recipient of the letter.

Somehow, Ponzi feels he can find opportunities from this IRC. He expressed the idea that he could take advantage of the different values ​​of IRC in various countries. Ponzi promises 50% profit to his clients in 45 days. That’s equal to 100% in 90 days.

In reality the business that he offered was not running as he presented it to his clients, even though the capital was used and he had to realize his promise. Finally he found the idea to pay his clients with a “dig hole” scheme.

In his strategy he pays the profits of his clients with the capital he gets from other clients. The pattern is that he pays investor A with the money he earns from investor B who joins after investor A. He continues to do that while looking for ways to develop the investor’s money and return all the “loans” of the capital.

This payment scheme was later called the “Ponzi scheme”. In other terms it is also commonly called  money game  .

The scheme failed when Ponzi began having difficulty recruiting new investors, which caused him to be unable to repay the capital of his clients. Finally the investors stated to withdraw their capital, which at that time reached 40,000 people and funds of up to $ 15 million.

In its development this scheme underwent modification, for example to become a “pyramid scheme” which is the mode of investment in the current investment. Usually investors are instead asked to find new investors with the lure of certain bonuses if they succeed in recruiting new investors.

Just as Ponzi experienced, this new-style Ponzi scheme also failed when the recruitment of new investors experienced congestion. The difference is, Ponzi used to try to recover the capital of his customers even though he failed eventually and he gave himself to the police and then was imprisoned. He even bought macaroni and wine companies to try to make a profit to pay his investors.

Meanwhile, most of the current investment players flee and “disappear” with the capital of their customers. They are not “noble” Ponzi, the creator of a bogus investment scheme.

Multi-Level Marketing (MLM)

Free translation for MLM is tiered marketing. At first glance, we can see the similarities between MLM income schemes and money game pyramid schemes, especially if we only look at revenue schemes based on ” downline ” recruitment.

But make no mistake, actually there is a significant difference between MLM and money games.

First, we can see in terms of registration fees. Money games, aka bulging investments, usually promise bonuses from your “investment” downline .It could be, for example, you get a 10% bonus from the amount of your downline deposit. You will not find this in the original MLM business. The company will not give you a bonus from your downline registration fees.

Second, in terms of bonuses. Genuine MLM usually only gives bonuses based on the amount of product sales turnover by your downline . While if the money game – as mentioned above – usually gives a bonus based on recruiting new members, which is obtained from the money deposited by your downline .

Third, of course from the side of the product being sold. In every real MLM business, there are always products sold. The product too – besides the company, of course – the legality and quality are clear. The quality of the goods sold can be accounted for. There is even a guarantee of the goods sold, of course with the terms and conditions that apply.

While in the money game , there are no products sold. In fact it does not require the sale of any product because of the benefits you get only from the development of your network. Even if there are some bogus investments that “involve” certain items, usually only as a cover. The quality is often not worth the price which is often too high.

Fourth, bulging investment often promises unreasonable profits. Just like Ponzi did in the past. You just have to recruit, the more you become more beautiful.

For MLM, although often the leaders sound too optimistic in every seminar (if not more), the calculation of your profits still makes sense because it is based on how many products you sell. The bonus that you will get will depend on how big your network sales turnover is, OPEN Non how many people you successfully recruit. In fact, to be able to reach a certain level of high income, good selling skills are needed and that cannot be said to be easy.

Refer & Get Money (RGM)

This one is definitely not a Ponzi scheme, money game, let alone a bogus investment.

It can be said that this RGM is a new breakthrough in the world of forex. This program you can make an alternative business in the forex industry. What’s interesting is that knowledge about forex is actually not even needed in running this program. You just reference your friend, then let it be managed by FOREXimf. In fact, unlike MLM, you don’t need to deposit funds at all!

Anyone can join this program. Students, entrepreneurs, professionals such as health nurses, writers, musicians, accountants, IT experts, architects, doctors, even bloggers. Just mention it.

The income scheme from this program is also quite interesting, but certainly different from the Ponzi scheme. You get income from every transaction made by the person you refer.

The difference with the Ponzi scheme is of course how you get income . If the Ponzi scheme, you will get a commission based on the amount of capital deposited by the customer. Unlike the RGM program, where you can only get income if your reference customer makes a transaction. The more transactions he does, the greater your income will be.

About Author: Muh Ikhsan

Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.

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