An MLM vs A Ponzi Scheme

You may have heard people talking about Ponzi schemes and wondered what it was. You may also have heard some people claim that Crypto888 Members Club is a Ponzi scheme! So, we’d like to take this opportunity to explain the difference between the two and show you that Crypto888 is a genuine MLM and not some illegal, scamming pyramid scheme!

Pyramid (Ponzi) Schemes

First, off, the crucial difference is that a pyramid scheme offers you nothing to sell. People in these schemes pursue people for cash up front and often use tactics that are nothing short of bullying coercion to make people sign up and hand over their money. 

These people will then find that there’s nothing behind all the high-pressure sales talk. They have just given their money away and while they wait for the promised product to arrive that will make their fortune, the conmen who created the scheme have long gone. 

It’s illegal to run schemes like these and they inevitably collapse at some point because the 8-ball and Matrix models they’re built on are totally unsustainable. There are only a few people who make money in a pyramid scheme and it’s the people at the top.

A genuine MLM

A genuine multi-level marketing scheme operates to the standards of a recognised marketing strategy. You have products to sell and whilst you may have to put some money on the table to participate you are always given something in exchange for that money. In a real MLM, members make money through various sales channels and from bonus payouts based on the ‘binary tree’ structure of a multi-level marketing network. That looks like this:

Source: MineMineAllMine.com

The main idea of any MLM strategy is to promote maximum number of people involved in the business and thus increase the sales force. Members receive bonuses and profit shares based on the activity of their teams. In a typical MLM, the compensation plan is structured in such as way that commission is paid to individuals at multiple levels when a single sale is made.  The level of commissions is based on the total volume of sales activity. And this is exactly how Crypto888 Members Club operates.

Compensation models of Ponzi Schemes

These schemes are quite different to authentic MLMs in the way they get people to take part and in their compensation methods. We mentioned the 8-ball and Matrix models above, and now we’ll explain how they work. In an 8-ball structure each person has to recruit two people and both those people have to give the recruiter “gift money” to take part. The money goes up the ‘pyramid’ to the person at the top.

In the Matrix model people have to pay a sum in advance and then join a queue to in order to enter the scheme. If they recruit somebody else, they get given a “gift” that is worth much less than the money they’ve put in, but it looks attractive enough tot keep them interested.

As we can now show, Crypto888 does not use these pyramid scheme methods in any way at all.

Why Crypto888 is a genuine MLM

1. Crypto888 does not “recruit” people, you are invited to join and there’s no pressure.
2. You are given a “product” in the form of cryptocurrency and crypto chips, both of which have a value equivalent to the money you put in.
3. There are no “gift” payments to other members, nor do you have to “pay and wait.”
4. You’ll receive profit shares and bonuses based on the legitimate binary structure of the network as illustrated above.
5. You may invite as many friends to join as you wish but you don’t have to invite any and you never have to ask your friends for an up front payment.
6. Crypto888 has a sustainable business plan and structure that ensures the longevity of the programme. 

Well, we hope that has cleared this issue up and that you can confidently explain the difference between an MLM and a Ponzi scheme to those who doubt what Crypto888 is all about.