MMM Nigeria’s domain was registered on the 28th October 2015 [Link: Whois this.] and what a interesting one year it is. My sister, a mid-level civil servant in Osun chatted me up about it last night, she wanted to register and make money and nothing I could say or do would dissuade her, other people were making money, why not her?
With ~1.6M users, this phenomenon is becoming too big to ignore, just imagine how much money is changing hands within that system without any form of trust !!! I think there is a business lesson to be learnt from how a 1-year old enterprise (I refrain from calling it a start-up) has been able to insert itself into the social fabric of a country.
Its really not that mind boggling. MMM is awoof. Nigerians like awoof which means Nigerians like MMM. I believe there’s some sort of mathematical representation for this kind of thing but i forget.
MMM is not a 1 year old enterprise. They’ve been doing this for long in other countries. I’m sure they already have their business model setup.
MMM’s entire operation revolves around trust. It is a ponzi scheme, investor’s trust is the most important thing. The other people your sister talked about got their money with profit didn’t they? I’m sure your sister will also make her money too. That is trust right there… at least for now.
МММ was a Russian company that perpetrated one of the world’s largest Ponzi schemes of all time, in the 1990s. By different estimates from 5 to 40 million people lost up to $10 billion. The exact figures are not known even to the founders. Wikipedia.
For sake of incredulity lets say the actual loss was a 10th of that $10B, MMM can run a pan-African Ponzi scheme successfully with less than $100m simultaneously.
The integrity on the scheme is basically the 30% gain on deposit upon the 1 month maturity. Since there’s very little business venture that can turn that over in a year, talk less of a month, its safe to assume they’re footing the interest on deposit.
Going by your estimates ~1.6m users
w/ average deposit of 100K (am being overly, overly generous)
Totals; 160B naira - Since they are only paying the interest, while users provide principal.
Cost to keep the system running = 48B naira
That’s a couple million dollars more than $100m, and with the Naira dance against the Dollar. $100m could still foot the total bill. The Mavrodi brothers can do this for some years even more, to habituate the scheme properly before they pull the rugs under feet, like they did in Russia.
In Zimbabwe, i believe the maturity period went into extension - 2 months and payout dropped from 50% to 20%, i think. The system is gradually slowing with millions of Dollars trapped in.
Take home from this play for me, is “nothing sells like word of mouth” , absolutely nothing.
Just like betting companies are successful because they give hope of doubling the money, MMM is successful because they give awof interest on money. Infact any business
that has to do with high gains on money invested in a short term will be successful. But they are also very risky. I’ll say that for now MMM is going well. Better go and invest and get your own share of awof money now before they disappear.
Zarfund is another good one. still new in Nigeria but growing very fast. Its acually the fastest growing network business right now. DM me if you want to join or know more about the business and how it works.
Funny part is, skeptics call it scam or a notorious scheme.
The disciples say > “Even If it is a scam, It is a Scam They Love.” lol.
Die-hards are so deep into it and it works fine at the moment. Risk!!!
There is no point trying to dissuade folks in using MMM, it will definitely crash like all ponzi schemes, just a matter of time. It’s kind of like casinos they have algorithms to make you feel good and win some but they always take all the money back.
Thing with MMM right now, has got to be “Knowing when to cash out” at least before it crashes.
If you drop out too early, the greed in you would be beating you up…if you crash with the scheme the Nigerian nature in you be like “an enemy has done this / why always me? / witches from my village have finally caught up”
If one of our Computer gurus/Coders can just come up with a startup that will model when this thing is likely going to collapse, and provide the info free, it will be perfect. An economist may also come in handy. this may probably help , how to predict the end
lol.
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