Hi Linda and Arild,
I think that you can count yourself lucky Arild. These "schemes" are everywhere.
To me, it seems like an electronic variation of the old pyramid sales letter scheme (also known as the airplane scheme) where you send $X to the name at the top of the lists then add your name to the bottom of the lists.
The problem, as I see it, is threefold:
1 - Lots of people will not be interested at all (reduces the numbers available).
2 - Lots of people will cheat the system (ie put their name at the top)
3 - Very soon, because of the exponential growth of the numbers there are not enough people left to propagate the system. (I'll demonstrate this below)
OK. Some bright spark or sparks start these things off (they always make money because they are at the top of the tree). We'll use the number quoted - three.
One sends to three, who in turn must send to three, and so on.
1st generation - originator = 1
2nd generation - 1 + 3 = 4
3rd generation - 1 + 3 + 9 = 13
4th generation - 1 + 3 + 9 + 27 = 40
5th generation - 1 + 3 + 9 + 27 + 81 = 121
See how the numbers are starting to blow out? It's an exponential progression, also known as a j-curve. Soon you simply run out of numbers. Watch. You can check this for yourself.
6th - 364
7th - 1093
8th - 3280
9th - 9841
Understand that you have to remove the "players" from the population pool if they are already in the "game." Yes, you can always have them re-join but if they made no money the first time, would they do that?
I'll keep going...
10th - 29,524
11th - 88,573
12th - 265,720
13th - 797,161
I'm having fun on my calculator so I'll keep going...
14th - 2,391,484 - that is a serious number!
15th - 7,174,453
16th - 21,523,360
17th - 64,570,081
18th - 193,710,244
Oh-oh! On the next progression every man, woman and child in the USA will be involved in this scam, I mean, scheme. Actually, we had better start including China now. Look...
19th - 581,130,733.
Yes folks, that is over 581 million people. The next level easily crosses the billion mark. Very soon the billions become trillions. Who do we find then?
Can you see how these things eventually HAVE to collapse? Sure, a few people will make lots of money - the originators. Some will make a little bit of money. Most will lose.
I wouldn't touch any of these things myself. However, for those who do - good luck! If you are only doing it for fun then treat it like a visit to the casino.
But I definitely would not keep pumping money in to push your name further up the chain. That is a new variation to the old concept. In my mind it is dangerous. Who knows where that money ends up?
Anyway, that's my take on it. If you want to play then that's your choice.
Regards
Gary Simpson
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