Year in year out I hear of people that had lost good money to ponzi schemes. I have even heard of an individual that had lost money to three different ponzi schemes. One wonders what will make one invest in such business. Here are some of the reasons I could think of.

1. Illiteracy : I don't mean lack of general education but business education. Knowledge of business, market and technology. I met a fellow trying to indulge me to invest in an online biz. He said he had invested and was expecting returns in 90 days. I asked him what are they produci ng? which service do they offer ? His reply was 'you know, their is money on the internet'. Well I don't need to tell you that after 90 days he could not find the company on the internet.

2. Greed: a good number of people make good returns on their initial investment in a growing ponzi scheme. Unfortunately, instead of pulling out with their gains they decide to reinvest, sometimes putting in more than the have gained. Some have lost a hand and foot from such mistake.

3. Gamblers: most people know what they are getting into but just want to try their luck. Yes everything in life is a gamble but be sensible.

4. Laziness: their are a number of definition for laziness but for me laziness is when you want to do nothing with your resources but gain heavily from it. You want that your N20,000 to become N120,000 in six months so you would be able to pay your rent. You want that to happen while you are at home sleeping. OK.

5. Poor Security: particularly from statutory government agencies that are mandated to protect the public. When such ventures fail these agencies are practically helpless.

I will stop here you can add yours.

ade002:
Year in year out I hear of people that had lost good money to ponzi schemes. I have even heard of an individual that had lost money to three different ponzi schemes. One wonders what will make one invest in such business. Here are some of the reasons I could think of.

1. Illiteracy : I don't mean lack of general education but business education. Knowledge of business, market and technology. I met a fellow trying to indulge me to invest in an online biz. He said he had invested and was expecting returns in 90 days. I asked him what are they produci ng? which service do they offer ? His reply was 'you know, their is money on the internet'. Well I don't need to tell you that after 90 days he could not find the company on the internet.

2. Greed: a good number of people make good returns on their initial investment in a growing ponzi scheme. Unfortunately, instead of pulling out with their gains they decide to reinvest, sometimes putting in more than the have gained. Some have lost a hand and foot from such mistake.

3. Gamblers: most people know what they are getting into but just want to try their luck. Yes everything in life is a gamble but be sensible.

4. Laziness: their are a number of definition for laziness but for me laziness is when you want to do nothing with your resources but gain heavily from it. You want that your N20,000 to become N120,000 in six months so you would be able to pay your rent. You want that to happen while you are at home sleeping. OK.

5. Poor Security: particularly from statutory government agencies that are mandated to protect the public. When such ventures fail these agencies are practically helpless.

I will stop here you can add yours.

I think the number one reason is greed!

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