I would like to know how ponzi schemes like mmm make their money cos from what I know, money is paid to people and not a particular account, so how do they make their money.

By paying themselves with numerous anonymous accounts. When the thing becomes too much and they can't repay those being owed, they fold up. End of.

I have been studying them in a while.

Whiteshades:
I would like to know how ponzi schemes like mmm make their money cos from what I know, money is paid to people and not a particular account, so how do they make their money.

who told u they are paying to members, do u knw the person u are paired to, the creators of ponzi scheme normally include their own account as the pioneer participants in their website, afterall the creators identity is hidden.

the operators have a long list of fake accounts which pple pay into, lets say there are 1000 members, 100 accounts will belong to the operators. MMM's format was to use guider bonus to defraud members hahahah

They don't pay themselves at first. They use their personal money to pay you.

After getting paid, they promise you 30% bonus to bring someone. You come to Nairaland to announce.

Greedy ones join you and start depositing....

The cash inflow becomes much thereby making them to start introducing their own accounts.

They now start collecting from Paul to pay peter.

New comers pay old-timers. When the deficit becomes much like in MMM's case, they go for maintenance.

After that, GOODBYE!!

Whiteshades:
I would like to know how ponzi schemes like mmm make their money cos from what I know, money is paid to people and not a particular account, so how do they make their money.

through the referral bonuses. that's the idea behind it. most modern Ponzi schemes also incorporate a pyramid structure within them. So a Ponzi scheme can also be a pyramid scheme where the person(s) at the very top of the pyramid can pull out funds by awarding themselves stupendous bonuses. That's the way the initial "investors" make their money back. The scheme will be in a free fall after they've left.

We saw this play out in the eventual collapse of MMM Nigeria. The MMM guiders were sucking up too much funds from the system as bonuses; they were not compelled to recommit any percentage of their bonuses back into the system just for the sake of ensuring sustainability.The top guiders in MMM pulled out by late November last year. They took advantage of the mentality of Nigerians who massively "provided help" during November so that they can "get help" during December for the Christmas celebrations. Hence, the guiders made a killing by simply matching the excess "PH" to pay them i.e they requested to "GH" their bonuses (without "providing help" or at least "providing as little help" as possible). This obviously caused an imbalance in the system which lead to the freezing of mavros.

The MMM ideology is a corrupted and easily bastardised version of crowd funding through peer to peer donations. It was actually set up to fail.

@Op do you want to start your own Ponzi scheme?