Valuable insights from David Wood on TelexFree and Ponzi schemes in general. Or, how to fine-tune your B.S. filter.
David Wood
When you see a deal where your income multiplies by some unknown force - it's a ponzi. * Let me be specific. I'm talking about real ponzi's, where commissions are being paid out in greater sums than actually exist - not trash talking anyone. So the pitch goes like this: "You just put in $349 for an ad pack rotator. The company does a rev share, which guarantees a payout of 1040% over 12 months. All you have to do is invest $349. The company does the rest, and you're guaranteed the payout - multiplying your investment more than ten fold." Sounds good, but in reality is a practical impossibility. No company that exists could sustain a payout like that - ever, without 'cheating' somehow. (AKA: The money doesn't actually exist. You can make a simple flash timer that counts up - thus 'magically' increasing your commissions.) Then all they do, is count on the fact that not everyone withdraws their commissions at the same time. Ponzi's create a sort of social frenzy - where people constantly take their 'non existent earnings' and re-invest it back into the ponzi. Think about it like this. I'm sure you've seen companies that guarantee a payout of 1.5% a day, or some crazy bullshit like that. But what nobody ever does, is pull out a compound interest calculator and figure out what 1.5% turns into from their investment over an incredibly short period of time. Einstein said something like: "There's no more powerful affect in mathematics than compound interest" (totally brutalizing it) Let me show you. Let's say you invest $10,000 into a company promising some sort of 'guaranteed return' and the return is 1.5% a day. Go to a compound interest calculator online, set the compounding period to daily, and multiply $10,000 by 1.5% a day, compounded every 24 hours, and see what happens. In one year (365 days) your $10,000 'investment' would somehow, by some magical force turn into $2,291,423.81. Now, how is that possible? It's not. Let me give you a large scale example: Let's say a company is bringing in $100,000 a day in 'new investor income' (not hard if you're running a ponzi - they create a sort of frenzy). That means that in one year, you bring in $36,500,000 in revenue - yet 'somehow' over the same 12 months, you 'multiply' the commissions in your team to 1,566,677,680.95. HOLY SMOKES GRANDMA!!!! GET A SECOND MORTGAGE OUT ON THE HOUSE!!!! LOOK AT THIS HOT NEW DEAL - YOU DON'T HAVE TO: * Recruit * Sell * Generate leads * Talk on the phone * or even work - AT ALL!!!!! How is that possible? It's not, unless Jesus is sitting there behind the pile of $36,500,000 - and 'magically multiplying it' daily. * Clue: He's NOT. As far as I'm aware, Jesus doesn't like Ponzi's, either. Ponzi schemes hurt people. Today, the SEC charged TelexFree with being a ponzi - and I had never heard of it, so I wondered what the deal was. So it took me 5 seconds to find a website that said this: "1) AD PLACEMENT PAYMENT: Simply put, a member has the option to buy a $339 ADCENTRAL PACKAGE (which comprises of 10 product software units ) and by placing just 1 company ad per day, which promotes this product, you earn yourself $20 a week for 52 weeks ($339 turns into $1040 just for placing your weekly ads....No sponsoring, no other special requirements)" "Click here to learn how to passively earn $2,144.00 per AdCentral in 1 year by compounding your income." "OR, a member has the option to buy a $1425 ADCENTRAL FAMILY PACKAGE (which comprises of 50 product software units) and by placing 5 company ad per day, which promotes this product, you earn yourself $100 a week for 52 weeks ($1425 turns into $5200 just for placing your weekly ads.... Again, no sponsoring or special requirements needed)." Why did the SEC charge TelexFREE? Because they are a Ponzi scheme. A company can't multiply money like that. If they could - they wouldn't need you at all. Why do Ponzi's hurt people? Because people put mortgages on their home, putting money into thin air under the assumption that they don't have to work, think, or do anything. Money in this industry is not made like gambling. It is made from selling products. Never be under the delusion that you'll make money without learning to market and sell stuff. * Special repetition: Never be under the delusion that you'll make money without learning to market and sell stuff. Because you won't. Hope that helps with your 'bullshit filter'. This is a public service announcement, in favor of silencing nonsense, and in the 'hopes' of saving someone's Grandma from mortgaging her home for thin air. If you want to get rich in direct sales, do these three things: 1. Work your ass off. 2. Master the basics. 3. Keep doing these three things. Or, another option: You could just do something else for a living. Unfortunately, everything that I know of that has any kind of meaningful reward also involves hard work, planning, thinking, studying, and... ...continued action over a long period of time. Hope that helps.
 Tissa Godavitarne
 Posted on Facebook
 Blogged by Blo.gl
 Indexed in Google

What do solar powered airplanes from Google have to do with Bitcoin? Here's what:

http://bitcoinowl.com/everything-starting-fall-place-bitcoin
Everything is starting to fall into place for Bitcoin | BITCOIN OWL
bitcoinowl.com
Everything is starting to fall into place for Bitcoin Author: Ivan RaszlDate: Monday, April 14, 2014 - 22:45Solar powered airplanes from Google to beam internet to remote areasBitcoin is a fairly new phenomena. Nobody at this stage can be sure if it will survive its infancy. But, if we look at the m...
 Tissa Godavitarne
 Posted on Facebook
 Blogged by Blo.gl
 Indexed in Google

0 Comments

TGIM!
 Tissa Godavitarne
 Posted on Facebook
 Blogged by Blo.gl
 Indexed in Google

First football game of the season and Alex's team won!
 Tissa Godavitarne
 Posted on Facebook
 Blogged by Blo.gl
 Indexed in Google

0 Comments

Awesome Friends
 Tissa Godavitarne
 Posted on Facebook
 Blogged by Blo.gl
 Indexed in Google

  • Categories
  • Recent Posts