Is MMM really a scam?
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People often say that MMM “helps” people, and there is no central account. Okay. But do you really need a central account to scam people?
Here is how MMM makes its money.
They create a database of accounts (Names, contact details, bank accounts) they cycle through for payment. Now these accounts are not regulated by any external individual . They are regulated only by the administrators of the scheme. So if after paying out for the first six months to nine months to generate “goodwill” and trust, they decide to slowly start keying in new account details of fronts operated by them, it won’t be noticed. Remember, schemes like these depend on “new intakes” to cover up irregularities. It makes sense that they used Christmas time rush and also extra bonuses to milk the sheep. Genius scheme if you ask me.
Why does the Federal government want MMM banned? A scheme Nigerians are using to help themselves? The national assembly are just too wicked! They are busy “chopping” our national cake but will not allow this God-sent scheme to see the light of the day. God Pass them” … and a thousand and one more quotations showing how desperate and ignorant Nigerians could be about ponzi schemes.
It is no surprise as to how passionate Nigerians could be about get-rich-quick schemes considering the fact that the current recession is really biting hard. In fact the level of passion exhibited by Nigerians about this scheme has forced many participants to write open letters to Federal authorities warning them to desist from any attempt to be a log in the wheel of their “progress’ . Some have become irrevocably too sure about the sustainability of the pyramid schemes, especially, MMM. I am not here to question the sustainability or otherwise of MMM scheme neither am I trying to pacify you to leave the scheme; I am here to tell you that MMM has not and will never improve thegenerality of life in Nigeria with the following facts.
(1) MMM has no central account. This well known fact should be a source of worry about the owners’ source of income and the sustainability of the scheme. MMM does not not have direct access to your money and thus, does not invest it in order to grow it. Why is MMM being selfless and ‘patriotic’ in ensuring the smooth running of the scheme? How the heck does it gain from the scheme? Below is the answer to the puzzle.
(2) It may shock you to know that just like you and millions of other participants, nothing prevents MMM from “providing help” and “getting help” from a scheme they created.As the first investor in its own scheme, imagine the millions and chains of referrals in their ‘downlines’ and thousands of guiders that constitute its team. I may be wrong in the figures , but the number will be quite humongous. Is the amount of money MMM makes enough to pay millions of their participants 30-40 % returns on their investments and 10% to the referrer? Hell No! Then how the heck are they able to keep to their promise of settling investors?
(3) Liken MMM to a large mansion where you have to pay the occupants some money before you are allowed entry into the house. Once you are allowed into the mansion, you have to wait for another stranger who has to pay you 30% + 100% of your money before he could be allowed to live with you. Most times one stranger may not be able to foot the bill. He is merged with one or more strangers to pay you. In other words, the sustainability and longevity of the scheme will rely on the number of new tenants and the amount the new tenants are bringing to the table ( as well as the willingness of old tenants to renew their rent). Will this huge Mansion one day collapse? Or more likely, will this huge mansion ,one day be deserted? Definitely! How? Read below.
(4) Who pays the old tenants? New tenants or old tenants who are willing to renew their rent pay the old tenants. Literally, if you provide help by paying a tenant, the same help will be reciprocated to you with 30 to 40% bonus for being a good kid.Will there be a situation where I will provide help and not receive? Yes.. in the event that new tenants stop coming. But what can really discourage new members from coming?
(a) When everybody have become tenants. In the very near and imminent future, this will be the case.
(b) When the mansion( scheme) has become old such that new tenants decide to look for other houses (schemes) with better offers ( MMM united, MMM japan MMM Illorin) leaving old members stranded in an a state of panic.
(c) when old tenants refuse to renew their rents and decide to rent a house( scheme) elsewhere
(d) when the money new tenants pay as rent is smaller than what the old members are waiting to be paid- Old members paid millions of Naira but new tenants are bringing peanuts because of the reason below.
(e) when there is fear and uncertainty. “Will they ever unfreeze mavrodi accounts after a month? is this an end time sign?” This will of course decrease “investors confidence” and will either make new tenants to stop coming, reduce how much that is being invested or make old tenants not to renew their rents.
(f) When old members, from their profit start building their own mansions in form of houses, cars , business- thus cutting the chances of reinvesting in the scheme which will invariably reduce the amount of money in circulation.
What will be the fate of old tenants waiting to be provided help? Your guess is as good as mine. Will this result to the crash of the scheme? Yes. How soon? I do not know. Why do I think MMM is not a helping scheme? Read below.
(5) As you have now known or previously knew, MMM will one day crash but the date, hour, minute, second is uncertain. What if it crashes? Will the totality of Nigerians be happy? A big No . Why? Let me make a simple illustration. Let’s say at the point A,B,C,D paid to E,F,G,H , the system crashes. This will create equal amount of Joy and sorrow. In other words, we may even have more mourners than “merriers” in most cases where many people are merged to pay few persons.
What have I achieved by writing this epistle?
a) I have established that MMM and similar schemes are not cast with steel. They will one day crash.
b) I have succeeded in establishing that MMM does not improve the generality of the population. Where you rob peter to pay Paul and create equal helpers and stranded ‘beggars’ does not imply help.
c)I have succeed in reducing your passion for ponzi schemes which is typical of productive nations. Let us be more creative, innovative and productive. MMM has really lead to brain drain in our agile youths.
Is it biblically, Quaranically, morally right to rob peter to pay Paul? Share your thoughts.