Monday, 31 October 2016

mmm demystified



This is how they generate the 30% and other bonuses. MMM is using Crowd Fund technique that every financial institutions using. Like banks, insurance companies, pension houses etc. Crowd fund approach is when many people pool together fund and inside it people were paid what is due to them.

Example you pay N5000 every month as insurance premium and one person got accident they pay him N1m. The Insurance coy paid him d amount inside the pool of cash earlier deposited. So likewise banks they pay withdrawals inside deposits,knowing fully well that we all cannot do withdrawals at d same time, if we all should do that they won't have money to pay us.

Mr Mavrodi applies d same approach in MMM
As people are joining everyday its making d community more vibrant with new deposit. And as old participants getting paid they are doing new deposits. So money continue rotating like that.

Moreover, crowdfunding works in banks because they gain interest from the money they loan out. It works in insurance companies because they invest the monthly premium they collect in investments such as bonds, real estate, etc.

These are open financial systems. There is cash input from outer sources to sustain them.
The same cannot be said of this semi-closed financial system.

what do you think?

Your thoughts may get biased when your eyes and hands can see and hold proofs.