So Amazing5 (the one really professionally designed revshare) shut up shop yesterday and left all investors out of pocket.
Unfortunately this particular revshare was registered on company house in the UK and was even based in the UK so it’s only a matter of time before the owners are brought to justice (we hope lol)
So this is my view on Revshares. Way back in 1918 one guy decided to come up with a scheme where he would make up a credible story on investment return then fleece hundreds of less educated to give him money with the promise of a bigger return in 90 days.
The scam involved international reply coupons (IRCs) which he would buy in europe at discount and sell in america for a small profit. Through this he devised a strategy where he could buy these in bulk at one point and sell them at another.
By 1920 was making $250,000 a day (he started with $2.50) as investors were coming from all around the world after an article was published about his investment plan but there was a huge discrepancy in the numbers.
At this point he needed to sell 160 million postal reply coupons to provide returns for his investors however there were only 27,000 in circulation and investors were getting suspicious.
So instead of coming clean he paid off the biggest investors by bringing in more new investors without actually mentioning to these new investors that they would never see any profit from their investments and so the charade continued until the system reached a point where it was no longer possible to pay anyone without going bankrupt so the scheme collapsed and Ponzi was charged with 86 counts of mail fraud and was sentenced to life in prison of which he served 3 years.
When released he set up various other schemes but nothing ever came of them and he was convicted again.
Charles Ponzi spent 17 years in prison and the rest of his life was spent in poverty.
This is why schemes like Amazing5, RevshareWorks, AdsPayPro, JustBeenPaid, Pray4Bucks, VialAdPays, BeOnPush and FutureNet are all considered Ponzi schemes named after the first person to build such a system.
Put simply any program that offers more than you orginally invest will be using new investors money to pay the old until the new investor rate slows and eventually stops.
At this point a Ponzi scheme implodes, the owners shut down and run with the cash and a lot of people are left out of pocket.
Nothing has changed since the first Ponzi in 1918 except that some owners believe that attaching advertising to an investment somehow makes the scheme legal.
Of course this is not true as the first person to do that in AdsPayDaily received 7 years in prison.
Bottom line: If you are thinking of starting a Ponzi then be aware that you face real jail time and financial losses beyond what you can imagine so make sure you are prepared to spend a very long time in court ultimately ending in conviction.
If you are thinking about joining a revshare then remember that the money you are receiving is from new people coming in expecting the same return as you.
In this model the rich get richer and the poor get poorer. You may make something and even decide to reinvest but ultimately you just funded a money-laundering operation that takes money from the desperate and needy and gives it to those who will just repeat the process over and over again until they get caught.
Perfect example of this is Charles Scoville (pictured left) who has done it 12 times now and most recently just had all the members assets frozen by the payment processors.
He is still on the process of trying to convince the investors that their money is safe while he hides out in dubai sipping a cocktail at some 5 star hotel. Sounds luxurious but would you like to live a life always looking over your shoulder in case a previous investor stabs you in the back?
Long post i know but it really saddens me to think that a scheme to steal money is still being used almost a century later. Have we learned nothing?