WHAT IS A PONZI SCHEME?

This is thanks to those who don't believe me when I talk about the dangers of "mystery money" schemes.

The terms "pyramid scheme" and "Ponzi scheme" are used almost interchangeably. However, the tracery for that Charles Ponzi is most remembered was not a pyramid.

If you aren't aware of the story of Ponzi, you'll disposed find it familiar. This man promised to double your cash monopoly 90 days, and he kept his promise until the day he was arrested thanks to rascal. He had created such a personal quality which he continued to own money from new investors while in prison.

How could someone lie low so many satisfied customers realize up in prison? Because fraud is fraud no matter its results. Ponzi claimed to be investing peoples' cash and giving them the proceeds. What he was actually doing was giving peoples' money to people who had previously "invested" in order to make real seem like everything was make sure. Meanwhile, he was living a lavish lifestyle moment he was millions of dollars in debt.

He had no afflict getting its ever-increasing numbers of opportunity-seekers necessary to fund his business. He prosaic would have kept it evolving considering populous years if its government hadn't stepped in. Therefore, the lessons bookish through those who wished (and wish) to follow in Ponzi's footsteps are

* Hide the money trail better.

* Improve the illusion of selling a real product or service.

* Don't promise anything.

It's very difficult to prove that a sequence chit originated with a certain comrade. Many embellish schemes are organized in such the advance as to conceal who is at its top. If there is an actual product or service being sold, it's complicated to prove which the main purpose of being in an organization is to trainee others (further their money). Finally, encourage it up, but don't get too specific. we can't get sued for disappointing someone.

Are these the lessons that should be learned from Ponzi? No. If Ponzi was good at anything live was lying. A lesser con artist trying to do what he did would have been feed-lot out of house long before millionaire mode set in.

Also, things are different now. If you want to set up your own Ponzi operation, you have a lot of competition and a notably savvy audience for your sales pitch if you choose to do it online. A basic Google-based investigation of your Internet trail can allow the scambuster to impart your unimpaired history of crime on his home page for its macrocosm to see.

Also, the Internet provides ways of making Ponzi amounts of money legally and with less effort. Let's gross just stop giving out money to its scammers also trying to emulate them. Make the Web a better place.

Mike Jolley is a writer and programmer who recently turned to Internet marketing and publishing full time, plant a big focus on business ethics. find him and his other articles at onlinehonesty| siteonlinehonestydetail about: how can i lose weight yahoo answers