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PYRAMID AND PONZI SCHEME
This is a general phenomenon used to describe strategy in business in which a particular firm uses the elements of marketing and trade to obtain a success in their business ventures with deception as a principle element. All these are done to make profits during the process.
THE PYRAMID SCHEME
This is a business model which promises compensation or prizes to members who join the program, recruiting new members to it's agency.
scenario;
Pyramid scams don't sell anything so to say, but basically relies on funds realised from recruited members to stay on board. Some pyramid scams appear so real, however on the long run the deceit becomes eminent
PONZI SCHEME
The Ponzi scheme is named after Charles Ponzi an Italian artist who migrated into North America, making a name for himself through wealth generation in deceit he realised great merchandise at that time.
source
A Ponzi scheme is a deceptive investment which works by repaying older investors with funds raised from new investors. It's done in deception therefore backend investors who joins later gets nothing as compensation.
scenario;
SIMILARITIES
They both phenomenon are financial fraudulent practices that promise sumptuous and irresitable returns of investment.
They require a constant flow of new investment in other to maintain it's status.
The duo is built on the basis of trickery and deception, offering falsehood and unreal assets.
DIFFERENCES
Ponzi scheme is built on falsehood in investment strategy. In other words victims are expected to believe that their capital are invested on a real platform. However on the contrary they rob their victims, share the spoil and disappear.
Pyramid scheme is based on a marketing strategy where the promoters earn commission for each investor they bring into the firm, while the remaining fortune goes to the owners of the central management.
PRECAUTIONARY MEASURES
Deceptive offers and unsolicited opportunities should be avoided. A sudden request or persuasion to join a long term investment is usually a big warning sign.
Examining the qualification and portfolio of the company is really crucial. An appropriate governing organization will register a trustworthy adviser or broker.
Ask logical questions, logical reasoning and psychology is key. Adequate verification and study should be done. A good and fair explanation should be done in cases of confusion in the venture you try to invest in.
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Hello @daprado1999 , please make a presentation according to the three accepted methodologies and what you will be sharing:
1- https://steemit.com/hive-165917/@businessactivity/business-activity-or-beginning-as-an-investor-how-to-verify-your-business-in-the-community
2- https://steemit.com/hive-165917/@oscarcc89/business-activity-or-take-a-look-at-the-accepted-topics-in-the-business-activity-community-you-may-be-interested-club5050
3- https://steemit.com/hive-165917/@businessactivity/launch-of-the-business-activities-diary-share-your-experience-when-visiting-businesses
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Greetings.
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HiI have dropped my verification post already few hours ago link
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