QUOTE(fyire @ Apr 6 2007, 12:40 AM)
There will always be a failure point for every single pyramid type scheme. Actually, there's a very simple and fatal flaw in your theory in regards to the self sustaining thingy. Notice that anything that is pyramid shaped, the further that u get to the bottom, the bigger the area will be? Same thing here too.
So far the 1st cycle that you've mentioned is alright, that's the start. Basically at that time, the income for the scheme is totally fueled by new recruits investing money in it. Thing is, your theory of the 2nd cycle is way way off. Those who've invested in the 1st cycle, and take out 300% of what they put in, where does that 300% of their original investment come from? From new recruits investing of course. Then if they're to just put in 1/3 of what they earned back in again, the system will still be short of 2/3 of what it paid out. Its simple arithmetic here that will tell you that a should there be no new recruits, the amount of money in the system will decrease, because more money is being taken out than being put in. So, without new recruits fueling the system, there is no way it can sustain. This is not some magic system where it can just multiply your money just like that. the money has to come from somewhere.
Hence the danger point of such systems. The longer it goes, the larger the pyramid becomes, and the need for new recruits to invest will grow as well. Should the rate of new recruits coming in not be able to meet the rate of payouts, that's when the entire system will collapse. Basically, this will also be the point where the ppl running the thing will just pack up and run off with the money instead of paying back, and thanks to the complete anonymous way that they operate, fat chances of ever finding them.
Let me rephrase this, there is a failure point of every biz.
No biz can last forever.
We all gonna die one day 'tho we all do not wanna die.
Yes, the entire system will collapse if it runs out of suckers that keep pumping in money in the pyramid.
Likewise, all biz will kick the bucket if there is no customer buys their product / service.
Firstly, my concern is how long this Swisscash can run? 3 years? 5 years? I think it's meant to be short run.
When will it run out of suckers?
We have to know the market size. We have to know the market demand.
How are we going to determine the actual market size? We can't determine it if there is repeating repeat purchase.
X repeat purchase = X market size. Secondly, I'm wondering the market reach.
After 2 years in operation, these Swisscash opportunists have not reached my door and talk to me face to face about this Swisscash.
I wonder what they do to sustain such pyramid for 2 years? And it's still running strong underground.
This is especially Malaysia is not a rich country. We do not have huge population. And many people do not believe in this cepat-kaya scam. How they do it?
One possible reason is, they can sustain the flow of money in a circle for a short period. They do not really have to reach every corner of market to sustain the biz.
Thirdly, you talk about payout. Who should pay the money?
By the logic, the money is from new recruits.
Let's say a sucker pumps in 3K and he gets back 9K (or 300%) upon maturity.
Let's look at the breakdown of payout.
- 100% is the capital payment (amount is 3K)
- 80% from new recruits. (amount is 2.4K)
-120% from the company (amount is 3.6K)
Assuming the maturity period is 7 months.
If it's 3K investment, by hook or by crook Swisscash will have to generate 3.6K (120%) in 7 months.
Is it possible to generate 120% in 7 months? Yes, why not? There are many underground activities that have high profit (few hundred% profit), such as pirated DVD/VCD, pirated software, shark loans, garment etc.
The scam does not require 300% from new recruites. IMO, 50-80% from new recruits could sustain the biz.
I would rather like to know the market demand. If there is demand, there is no way to fail.
I would rather like to know the market size & the market reach. It determines how far it can go & how long it can last.
*** Invest in the right time & right place - shoot it to the core. ***
Added on April 6, 2007, 12:26 pmQUOTE(guowen221 @ Apr 5 2007, 06:15 PM)
act i am very close to my diredt upline..its call ee...is the 1st ppl join in swissash at malaysia...heshow mi his back office page jan 07 and feb 07 ....total group sale per month at jan(inlude oversea) is 6.8 million...and feb per month is 8.4 million...tis is a figure per month...
I'm not interested in the turnover of No1 guy in Swisscash.
I would like to know your turnover. And how do you see the market?
How much do you sell a month? What's your sales turnover?
Can you tell me how many people have joined Swisscash as of todate (just estimate lah)? How long have you been joining Swisscash?
This post has been edited by ALeUNe: Apr 6 2007, 12:36 PM 
Mar 27 2007, 06:59 PM
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