MMM is trending here in Nigeria. Every week, I get an average of five invites across all social media platforms to join the MMM ‘movement’. In the unlikely event that you have not heard of MMM, having just emerged from a cave to miraculously run into this article, MMM is a platform which in summary claims to operate a mutual aid programme requesting participants to provide money to others and promising returns of 30% of such monies after 30 days.
It is a global platform touted as a Ponzi scheme (as it obviously is) and reported to be operated by Sergei Mavrodi, a Russian jailed in his home country in the late 1990’s when his earliest schemes ripped Russians millions of Dollars and led to multiple suicides.
The Nigerian adaptation is an ingenious creation displaying an understanding of the culture, beliefs and thought processes of the typical Nigerian. Its model stands out as a lesson for all entrepreneurs looking to push their products into new markets.
Apart from these lessons however I have had the opportunity to discuss the platform with colleagues and there seems to be no debate on the status of the platform as a Ponzi Scheme as it does tick all boxes. See here for hints.
Regardless of its status as a Ponzi scheme however, I still get people telling me how it is still a useful source of quick cash before it crashes. For the following reasons, this position as pragmatic as it sounds does not quite resonate with me and, I believe, a lot of entrepreneurs out there trying to build a product.
(1.) Promise of big money consistently with little work.
Entrepreneurs know that there are of course things that you can do to make money without having to work all that hard. But, it’s just not possible for everyone who joins a business to be able to make so much returns without working. Making money takes work. Entrepreneurs also know that NO business on earth can consistently provide such returns. Businesses have ups and downs simple.
(2.) The Principle of value.
Real entrepreneurs understand that real wealth is generated from the creation of value and not from instantaneous windfalls resulting from concocted trade-offs. They understand the paradox of the lottery winner…money minus value does not equal wealth.
(3.) Understanding Money.
Real entrepreneurs understand that money is really not valuable in itself. It is valuable because people agree to make it a medium of exchange for REAL value. Its utility lies in its use as current (hence currency) for the movement of value thereby obviating the need for barter. A system running merely on the exchange of money for profit is nothing but a SCAM. Participating in such a system like that only lends credence to the scam.
(4.) Not an investment.
I have heard people liken the MMM system to investing in shares. The comparison is laughable. When an investor buys shares, he is taking real risks to contribute into an entity that undertakes in the creation of some sort of value.
Investing in shares takes careful thought, analysis, and assessment. He does not expect consistent returns. By buying shares, the investor expresses faith in the vision of the company and faith in the management to execute the vision. It takes knowledge to avoid serious burns. So NO, MMM is not comparable to investing in shares.
(5.) The issue of focus.
Entrepreneurs are busy trying to create and perfect systems, solve problems, devise innovative answers to challenges. They are bound to look at a get rich quick scheme as a mere distraction in terms of the time and resources to be expended into chasing a venture that provides no ultimate value addition to themselves or the society.
(6.) The moral question.
If you are sure that a system is a scam propped up by the resources of naïve but trusting participants being manipulated by experienced “confidence men” with an uncanny understanding of human greed and a history of taking advantage of it, would you still support it with your money?
(7.) The understanding of risk.
Proponents of the scheme tout the cliché; “Nothing ventured, nothing gained” because it paints the contrarian picture of a daring risk taker. Entrepreneurs however understand the difference between gambling and enlightened risk taking. A gamble is taken without the understanding or control of the variables which determine the desired outcome.
Investing involves enlightened risk taking premised on an understanding of key variables and a reasonable grasp of possible eventualities. If I commit to give my money to a scheme over which I have no control, because of returns of which I have no sight, I am not investing, I am gambling.
The times are hard. Nigerians are seeing the MMM scheme as some sort of saviour from the harsh realities of the current recession despite the obvious signs that it is not. To all those who cannot resist the temptation of quick easy cash, please proceed with extreme caution. To all those who do not participate in the scheme as a matter of principle, know that you are not alone.

I align with OP's points. MMM is not really developmental in the real sense. It is just money exchanging hands without value being actually created.

true talk...!

While the points raised by the OP are valid, he refuses to entertain the thought of a new global financial system.

The present global financial/banking system starting with the origins of money as a measure of value, did not come about suddenly or at the instance of a government law or policy. But it became prevalent and universally accepted.

The world has been changing for far too long while the traditional financial system has remained in crystal. Now financial systems like the ones propagated by MMM are attaining some measure of universality. The traditional financial systems feel threatened and are pointing to the imperfections of the novel and noble ideas of the new system, as regards the absence of value. What about the imperfections of the old system?

MMM is taken away the entrepreneur Ethos in people that have what it takes,
I have a friend who wants to change his car and what he did bemused me, He sold his car and put the money in MMM and He told me that with MMM, He is moving from Corolla to RX in Three months THAT I SHOULD WATCH OUT(in his own word) I was disappointed

Op, so, what have u told us now?

That was an opinions from one man, you can tell me your own opinion

FavoredGuy:
Op, so, what have u told us now?

All I know is that these Ponzi schemes, MLM etc just kill people's creativity and make them more aggressive financially, albeit on a low level.

The richest people in the world didn't get there by quick-money schemes, they got there by identifying what people needed and meeting those needs.

johnca:
MMM is taken away the entrepreneur Ethos in people that have what it takes,
I have a friend who wants to change his car and what he did bemused me, He sold his car and put the money in MMM and He told me that with MMM, He is moving from Corolla to RX in Three months THAT I SHOULD WATCH OUT(in his own word) I was disappointed

When he brings the RX to your house, you'll then register.

johnca:
MMM is taken away the entrepreneur Ethos in people that have what it takes,
I have a friend who wants to change his car and what he did bemused me, He sold his car and put the money in MMM and He told me that with MMM, He is moving from Corolla to RX in Three months THAT I SHOULD WATCH OUT(in his own word) I was disappointed

Disappointed? No kill am with poison cos of jealousy o. After advising him ul now hop into his RX330 and act like a scrub calling out chicks from the passagers side of ur best friends ride!

In as much as I don't really like MMM, though I was forced to join in November, I can say the scheme is a blessing in disguise to Nigerians. I wonder what the situation of the country would be if this scheme is not existing in this recession. To a great extent, MMM has put smile on faces of many Nigerians, making them to worry less of what clueless, worthless and useless Nigerian leaders would do for them.
The major need of man is food. How would your thinking faculty be productive if you are hungry? It is said that a hungry man is an angry man. A man that is hungry can not think productively! MMM has fed and is feeding people thereby meeting the major need of man which is food.

MMM is a scheme that came at the right time for investors and entrepreneurs. It is not a gain saying that Nigeria environment does not encourage entrepreneurs. So many people out there are loaded with ideas that can transform the nation to cynosure of eyes if they have the financial muscle. Alas! they don't and there are no schemes that can finance their ideas into reality. Bank loans are not options too. This MMM is doing! At least, I know someone that opened a business center through MMM proceeds. There are hundreds of others if not thousands, who have translated their ideas and passions into reality through their gains from MMM.

MMM is an investment to me. What is investment? It means putting your resources, both financial and materials, into a project with an expectation of some profit in times to come. Is this not what MMM is about? You put some money into the system with an expectation that you will get 30% as returns. And yes, this is risky too.

MMM is bridging the gap between the rich and the poor and the rich are not happy about this. This is the reason for their selfish concern.

johnca:
All I know is that these Ponzi schemes, MLM etc just kill people's creativity and make them more aggressive financially, albeit on a low level.

The richest people in the world didn't get there by quick-money schemes, they got there by identifying what people needed and meeting those needs.

Investors and enterpreneurs are doing MMM dont mind the silllly poster infact they are investing millions
My account officer almost cried begging me to do it

bettercreature:
Investors and enterpreneurs are doing MMM dont mind the silllly poster infact they are investing millions
My account officer almost cried begging me to do it

Entrepreneurship is all about adding Values

johnca:
Entrepreneurship is all about adding Values

That doesn't stops you from embracing rear opportunities

Mmm is the best thing to happen to Nigerians after Independence. Marvo deserves Nigerians highest honour GCFR n world Nobel price in finance even if it crashes nw BC it has blessed millions of Nigerians in the last one yr it existed.

As for you op pls dnt join nobody cares after all we all can't make money in d same way. Some work for money while others allow money to work for them even while they r sleeping i choose the latter

i