Now very few people know of what signs of a financial pyramid as not so long ago, some couples decades ago thousands of people became injured participants of frauds of swindlers are. To remember, for example, bitter experience of MMM. And today, the financial organizations which simply build the system still continue to appear, without thinking of the valid providing the obligations. Many are concerned by a question as the pyramid is arranged to avoid to appear among thrown and deceived.
Principle of work of a financial pyramid
What the principle of creation of a pyramid, probably, is based by interestingly much on. Here it is quite logical to understand, the main thing that concerns swindlers - it is inflow of money from naive investors. The main incentive which is used by organizers – big percent which they undertake to pay after a contribution. The basic principle of a financial pyramid is that all payments turn out not from the gained income from financial activity, and from inflow of new investments.
That is, financial pyramids it is possible to call all offers of the financial organizations where promise the big amount of payments for obligations which at the same time exceeds the surplus value from business. Briefly are illegal frauds.
Such activity received this name only in the nineties after MMM failed. Why such activity was compared to a pyramid? The fact is that the wellbeing and activity of the similar organization is simply assigned to participants of the lowermost levels of a system. Income of finance always goes from a basis to a certain group of the people who are on the top floor, at the same time due to increase in the sum of investments or by means of involvement of new investors. All who are at the level of the basis try to reach in every possible way levels above. Here such principle of work of a pyramid.
Principle of activity of financial pyramids
So, and now it is necessary to consider in more detail how the financial pyramid is arranged. Let's give a bright example.
- Let's say the organizer of a pyramid in search of investors promises 100% of monthly income. There are two persons interested who agree to enclose in this project on 100 dollars. Now the organizer needs to find for this month four more investors in order that the first two gained income.
- As soon as it is possible to execute the system of the first month, it is possible to pass to the second action – advertizing start. Thus, it will be possible to attract new clients of a pyramid.
- After the second month in the organization it is necessary to attract 16 more new investors. It is necessary for providing the first two participants with income (on 400 at. e) and the second four (on 200 at. e). So the organizer provides two months 100% of profitability.
- The fourth month of work. It is necessary to attract 64 new investors. Those which were the first at this level get very good profit. Certainly that further advertizing develops thanks to participants of a pyramid as there is a stimulator – high profitability. And the organizer receives the additional amount which he is going to spend on promotion of the activity. Often use charity that the belief of people that the organizer has only the friendliest intentions became stronger.
- A year later after the pyramid successfully develops, every month it will need to attract 16 million new investors. Only thus it will turn out to provide profitability to all participants, apart from the organizer.
- But once the curtain opens, and the pyramid has difficulties with providing investors with income. In such situation the head begins to make promises about receiving bigger profit by that who will remain.
- There pass one and a half years and the pyramid begins to collapse. Organizers take away all earned finance and completely disappear.