I've been monitoring recent activities in the Nigerian Tech Scene and I've discovered a site (www.nigeria-mmm.net)that claims to give people 30% more of their initial registration fee at the end of 2 weeks. They also claim to give a certain percentage of commission when you refer someone to their network. After making some research, I came to the conclusion that the probability of this scheme being a scam is 65%. Considering the way the Nigerian economy is bad, it might be best you avoid this.
A BRIEF HISTORY OF THE FOUNDER SEIGEI MOVRADI (EXTRACT FROM WIKIPEDIA)
Sergey Panteleevich Mavrodi ( Russian : Серге́й Пантелеевич
Мавроди; born August 11, 1955) is a Russian criminal and a former
deputy of the State Duma . He is the founder of the МММ series of
pyramid schemes . In 2007 Sergei Mavrodi was found guilty in a
Russian court of defrauding 10,000 investors out of 110 million
rubles ($4.3 million).
In 1989 he founded MMM .[4][5][6]
He was then elected to the State Duma, [6] thereby obtaining
parliamentary immunity. Mavrodi declared MMM bankrupt on
December 22, 1997, then disappeared, and was on the run until his
arrest in 2003. [7]
In 1998 Mavrodi created Stock Generation , [8][9] allegedly a classic
pyramid scheme presented as a "virtual stock market game". [1] The
website ran from 1998 to early 2000. The Massachusetts district
court initially found that U.S. Securities and Exchange Commission
was unable to cite Stock Generation's founders and owners for
securities violations. However, the United States Court of Appeals
reversed this decision in 2001, concluding that the SEC alleged
sufficient facts to state a triable claim.[10] In 2003 the SEC obtained
permanent injunctions against SG Ltd. and relief defendants SG
Perfect and SG Trading, which profited from the disbursement of
funds fraudulently gained by SG Ltd. [11][12]
On April 28, 2007, a Moscow court sentenced him to four and a half
years in a penal colony. The court also fined him 10,000 rubles
($390). [7]
In January 2011, Mavrodi launched another pyramid scheme called
MMM-2011, asking investors to buy so-called Mavro currency units.
He frankly described it as a pyramid, adding "It is a naked scheme,
nothing more ... People interact with each other and give each other
money. For no reason!" [13] Mavrodi said that his goal with
MMM-2011 is to destroy the current financial system, which he
considers unfair, which would allow something new to take its place.
MMM-2011 was able to function openly as Ponzi schemes and
financial pyramids are not illegal under Russian law. [14] In May 2012
he froze the operation and announced that there would be no more
payouts.[15]
In 2011 he launched a similar scheme in India, called MMM India,
again stating clearly that the vehicle is a pyramid. [16] He has also
launched MMM in China. [17] He was reported to be trying to expand
his operations into Western Europe, Canada, and Latin America. [14]
As of September 2015 it had spread rapidly in South Africa with a
claimed 1% per day or 30% per month interest rate scheme [18] and
warnings from both the South African and Russian Communist
Parties for people not to participate in it.
https://en.m.wikipedia.org/wiki/Sergei_Mavrodi
NIGERIAN AUTHORITIES TAKE NOTE
Here are some other reasons why I think it's a scam.
1. They Are Focused More on Recruiting than Selling
One of the first things to watch out for is a focus on recruiting rather than selling. If you are being recruited in order to recruit more people of your own, rather than actually focus on selling a particular
product, that might be a red flag. Consider whether or not there is a lot of focus on getting you to recruit
more "team members," instead of focus on acquiring customers. If the recruits are the customers, that could be a red flag. This is obviously what the MLM in Nigeria is doing now.
2. Poor Training
What sort of training and support are they giving clients ?
How are your questions answered? If you are asking tough questions, and they are deflected with talks
on positive thinking, you could be looking at a MLM
scam. Also, consider the training situation. Are you
provided with actual business techniques and
support? If the training consists of how to convince
recruits, or tips on selling to friends and family, your
"home business opportunity" might actually be a work at home scam .
3. Pressure to Pay for More
Are you being pressured to pay for more product?
You might be asked to join a "fast track" or become
"elite" by purchasing a great deal of inventory all at
once. Or, you might be pressured into buying an
expensive business package in order to get the
business support you need. If you are asked to pay
for extra training (beyond attending an annual
conference or convention) on a regular basis, or if
you are asked to pay for basic office supplies, you
might be in trouble.
Be especially wary of those that ask you to put your
costs on a credit card, or encourage you to take a
home equity loan or line of credit to pay for this
"business investment."
4. Sales Tactics Brought to Bear on You
Do you feel as though you are the subject of a high-
pressure sale when you talk to the MLM
representative? You might be told that you have to
make a decision right now in order to get a good deal
on the initial kit, or to buy in at a "special" price, it
could be a scam. Most legitimate companies allow you
to talk it over with your family, or sleep on your decision.
5. Seems Too Good To Be True
As with everything in life and in purchases, you need
it to pass the too good to be true "smell test." Are the
claims about the product outrageous and hard to
really prove? Is there are a lot enthusiasm about the
"amazing" program, without much to back it up?
Watch out for anything that seems too good to be
true. Chances are that it's actually a scam
6. The Testimonies Don't Link To Accounts Of Real Individuals that Can be easily contacted.
Some of my points were taken from Business Insider .
Now One Question is How Do they plan to get 30% profit for someone who pays to join the program when there's no product to sell?. They'll probably hire a group of marketers to convince people and post fake earnings to convince people to join.
Another thing we need to take into consideration is the fact that history has a way of repeating itself. This is why I will also include the history of MLM schemes so you can decide for yourself.
Wikipedia
MMM is similar to la Multi Level Marketing System with some differences
Multi-level marketing ( MLM ) is a controversial marketing strategy in
which the sales force is compensated not only for sales they
generate, but also for the sales of the other salespeople that they
recruit. This recruited sales force is referred to as the participant's
"downline", and can provide multiple levels of compensation.
Companies that use MLM models for compensation have been a
frequent subject of criticism and lawsuits. Criticism has focused on
their similarity to illegal pyramid schemes, price fixing of products,
high initial entry costs (for marketing kit and first products),
emphasis on recruitment of others over actual sales, encouraging if
not requiring members to purchase and use the company's
products, exploitation of personal relationships as both sales and
recruiting targets, complex and exaggerated compensation
schemes, the company and/or leading distributors making major
money off training events and materials, and cult-like techniques
which some groups use to enhance their members' enthusiasm and
devotion.
MMM binary tree structure. The blue individual will receive compensation from the sales of the downline red members.Independent non-salaried participants, referred to as distributors (or
associates, independent business owners, independent agents,
etc.), are authorized to distribute the company's products or
services. They are awarded their own immediate retail profit from
customers plus commission from the company, not downlines,
through a multi-level marketing compensation plan, which is based
upon the volume of products sold through their own sales efforts as
well as that of their downline organization.
Independent distributors develop their organizations by either
building an active consumer network, who buy direct from the
company, or by recruiting a downline of independent distributors
who also build a consumer network base, thereby expanding the
overall organization. Additionally, distributors can also earn a profit
by retailing products they purchased from the company at wholesale
price.
The U.S. Federal Trade Commission (FTC) states: "Steer clear of
multilevel marketing plans that pay commissions for recruiting new
distributors. They're actually illegal pyramid schemes. Why is
pyramiding dangerous? Because plans that pay commissions for
recruiting new distributors inevitably collapse when no new
distributors can be recruited. And when a plan collapses, most
people—except perhaps those at the very top of the pyramid—end up
empty-handed
The Federal Trade Commission warns "Not all multilevel marketing
plans are legitimate. Some are pyramid schemes. It's best not to get
involved in plans where the money you make is based primarily on
the number of distributors you recruit and your sales to them, rather
than on your sales to people outside the plan who intend to use the
products
The vast majority of MLMs are recruiting
MLMs, in which participants must recruit aggressively to profit.
Based on available data from the companies themselves, the loss
rate for recruiting MLMs is approximately 99.9%; i.e., 99.9% of
participants lose money after subtracting all expenses, including
purchases from the company."
Updated - 19 AUGUST 2016
Many Individuals have claimed that this scheme is not a scam. However all I have to say is just be very careful not to invest too much in MMM. Certainly one day the scheme would end.
I guess you can decide for yourself after reading this . However everything I wrote here is strictly my opinion. If you feel different about this scheme, use the comment box
Source: Naijatechguy.com
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