Before I tell you people something about this ponzi scheme, let me say that I don't blame those who patronise them, times are hard, economy is very bad, there is suffering but let's be careful please.

My story:
This is a true story and some of you who live or have lived in Onitsha around 2010/2011 may understand or remember what am about to say here.
A woman that lived in feggae then, all of a sudden started telling people that if you pay N3,000 you will be given a bag of rice. A bag of rice then was N8,000. People started paying and started getting bags of rice depending on how much you paid. I paid N3,000 and I was given 1 bag of rice the next day and it was like a magic; so I started telling people about it and people started paying. Those who paid and got bags of rice like I did also started telling people and people started paying and be getting bags of rice after like 3 - 5 days. Everybody was surprised how this thing was possible. People who started this evening claimed and brained the gullible ones like me then that the Federal Government released seized rice by the custom and that was why you can get a bag of rice at N3,000 if you register..what a lie!! I started looking into that and found out that when 3 people paid which would give them 9,000; they will buy I bag of rice and give the first person and make N1,000 profit. Which means for you to get a bag of rice if you paid N3,000, 3 people must pay after you. For the second person to get his or her 1 bag of rice, 6 people must pay after him or her. For the third person to get 1 bag of rice, 9 people must pay after him or her. In every 1 bag of rice they would give out, they would make N1,000 profit. So, what they did then was to wait when a good number of people like 30 people paid N3,000 each which would amount to N90,000, they will buy 10 bags of rice (N80,000) and give the first 10 people and ask others to come back next week.

Calculations:
The 30 people that paid them would give them a total of N90,000 and they would buy 10 bags of rice for the first 10 people which would amount to N80,000. N10,000 is their profit; remember every I bag of rice given out would give then N1,000 profit.
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Before that next week which they have asked others to come back, more people must have paid and they would buy and keep giving as the queue kept growing. This is networking. The business kept going because more people kept complying and paying, people kept getting rice just like people are used to be getting their monthly percentage in MMM because people were still coming, complying and paying. One thing with ponzi business is that it will not have any problem so long people keep applying and paying just like the rice networking business was going on well and fine because more people were paying due to the testimonies given by those who have received their own bags of rice.

After some months, trust Nigerians; other people started opening their own outlets for rice networking businesses then just like there are many ponzi websites now. This thing happened in Onitsha (Anambra state). I even opened my own and it was going on very well. My own stand then was along porthacourt Road, close to St. Jude's Catholic church, feggae. Before you knew it, the whole Onitsha became rice networking business area, outlets every where just like its happening now with ponzi schemes. People kept paying and the first set kept receiving bags of rice until when the queue became too much and the rate at which people used to come and pay reduced because there were other outlets almost every where. MMM for example doesn't get new members for many reasons:

1. The impression they have created in the minds of people last year, people are now scared that they can go offline again and go forever. So, people only apply to get help and not "provide help".
2. There are many ponzi websites on internet now, people divert and try new ones.

Back to the rice business.
As people started opening their own rice netwworking outlets, people stopped patronising the old ones as they used to do just because they wanted their friends and others to get their own bags of rice before they decide if they would patronise or register with them. As a result of this; no more money to buy more rice and give to those who have not gotten. Sometimes you will hear someone saying that his or her number was No. 4000; which means 12000 people have to pay before such person would receive his or her own bag of rice and if you check it, the number of people in their register maybe 5900. Which means that the person whose number was No. 4000 may never get his or her rice because people have reduced with the rate they used to come and complains had started flying around, infact; people were only interested in getting and receiving rice and not paying. So people were now afraid to pay, some would be like I won't pay until my friend or sister who was at No. 4000 gets.

Pressure became too much for the woman because everyday people would come and queue up infornt of his outlet waiting for their bags of rice; people who have paid not people who were yet to pay. If the total number of the people in the register was 5900 and they paid N3000 each, which means they had N17,700000 which would only be able to buy 2,212 bags of rice if they don't want to make their own profit, which means it won't even be able to buy upto that number of bags of rice because they will deduct their own profit but let's assume they were father Christmas. The remaining 3,688 would be waiting in vain unless more people started coming of which more people have stopped coming. This is how the woman ended up owing over 3,600 people then and when the pressure became too much on her, she ran away with the people's money she was having and nobody ever saw her again. People cried and regretted. Other outlets like ours started folding up and running for our dear lives because police started arresting anybody who had any outlet for rice networking business. You would count yourself lucky if police arrested you because most people who owned such outlets were beaten to coma, some were given unforgetable injuries by angry mob because of what happened in other outlets. I simply left Onitsha and relocated to my brother's house in the North and returned after some years. The worse part of it is that people like us that started it at late hour didn't gain anything but to run for our dear life.

So my dear people, MMM is not different from what I just narrated here if really you understood what you read above. MMM and every other ponzi business will definitely come to an end with time, its a networking thing which only functions when more people keep applying. With time, people will defintely stop applying and those who applied will be stuck. There is nothing you would do about it because if you complain, you will be asked to get more people. When people start complaining of not getting their percentage returns, people will definitely stop. Only the people that usually come first or at early stage usually gain from ponzi business.

Cc: lalasticlala

So on point. Only those who come early are those who benefit from schemes.
FTC ON POINT

castro316:
So on point. Only those who come early are those who benefit from schemes.
FTC ON POINT

moderators wont move it to ftc to avoid more heart attack.