Silver Snowball scam/pyramid scheme

[Tysonboss1]

There seems to be a pyramid scheme which is growing very popular among get rich quick types called "silver snowball".

The way it seems to work is it costs you $42.50 to sign up and you get a coin worth $20, but when you sign up a further people for every 2 you sign up you recieve a silver coin.

for example.

1 person pays $42.50 ($20 goes to buying their coin, $10 goes to paying for half the value of the free coin the person that signed them up gets, and $12.50 go's to the founder for postage and profit)

So once a person pays $42.50 all they have is a coin worth $20, unless they sign up a more people, once they sign up 4 people they start to get a profit in the form of free coins.

However like any pyramid scheme this has to comes to an end, because if every body that joins signs up a further 4 people by the 17 level the amount of people needed in the system is well over 10 billion.

The worst thing is when it hits it's saturation point over half of the people involved will be out of pocket and the founder will be rich.

Below is the link to this clowns video

http://www.youtube.com/watch?v=sdqnT6wduQg&feature=related

http://www.youtube.com/watch?v=y5RzWgz3WZA

 

[skyQuake]

There seems to be a pyramid scheme which is growing very popular among get rich quick types called "silver snowball".

The way it seems to work is it costs you $42.50 to sign up and you get a coin worth $20, but when you sign up a further people for every 2 you sign up you recieve a silver coin.

for example.

1 person pays $42.50 ($20 goes to buying their coin, $10 goes to paying for half the value of the free coin the person that signed them up gets, and $12.50 go's to the founder for postage and profit)

So once a person pays $42.50 all they have is a coin worth $20, unless they sign up a more people, once they sign up 4 people they start to get a profit in the form of free coins.

However like any pyramid scheme this has to comes to an end, because if every body that joins signs up a further 4 people by the 17 level the amount of people needed in the system is well over 10 billion.

The worst thing is when it hits it's saturation point over half of the people involved will be out of pocket and the founder will be rich.

Below is the link to this clowns video

http://www.youtube.com/watch?v=sdqnT6wduQg&feature=related

http://www.youtube.com/watch?v=y5RzWgz3WZA

One might begin to think Aus post are the real winners.

Scheme upon scheme sprout up and are shut down.
But Aus post keeps raking in the postage & handling

Just like a broker!

 

[riveroak]

Silversnowball. Not a scam

As a Silversnowball web owner I would like to refute the claim that its a pyramid scheme or a scam.
First, the definition of a pyramid scheme is where nearly all of the assets gos to the person at the top.
Second, the definition of a pyramid scheme is that you can never make more money than the person above you.
Third part of the definition of a pyramid scheme is that you get some thing of little value to market.
None of this applies to Silversnowball.
To start with, it only has 2 levels, so by a fourth definition its not a pyramid scheme.
To address the other 3 issues.
In silversnowball any individual can make more money, or acquire more silver coins than the person through whom they sgined on with.
There is no limit to how much the person under you makes.
That deals with the first and second points.
Third. You do get some thing of real value, a 1 oz silver coin every month, even if you don't bother to market your site as well.
And to address the issue of you paying more than the market price for the silver coin.
The extra money gos into the website, and hosting that you get when you join to run your business. And the general administration costs.
Yes, you don't get the coin at spot price, but nobody but futures traders do.
And your still getting the silver coin cheaper than through some dealers, and the coins are posted to you, so you don't have to drive into town to buy them.
And last of all. You will never run out of buyers, any more than a car maker, or washing machine maker will run out of customers. Theres just too many potential customers to ever worry about that. All the silver in the world would literally run out long before you get close to getting to a fraction of all your potential customers.

 

[Garpal Gumnut]

Re: Silversnowball. Not a scam

There seems to be a pyramid scheme which is growing very popular among get rich quick types called "silver snowball".

The way it seems to work is it costs you $42.50 to sign up and you get a coin worth $20, but when you sign up a further people for every 2 you sign up you recieve a silver coin.

for example.

1 person pays $42.50 ($20 goes to buying their coin, $10 goes to paying for half the value of the free coin the person that signed them up gets, and $12.50 go's to the founder for postage and profit)

So once a person pays $42.50 all they have is a coin worth $20, unless they sign up a more people, once they sign up 4 people they start to get a profit in the form of free coins.

However like any pyramid scheme this has to comes to an end, because if every body that joins signs up a further 4 people by the 17 level the amount of people needed in the system is well over 10 billion.

The worst thing is when it hits it's saturation point over half of the people involved will be out of pocket and the founder will be rich.

Below is the link to this clowns video

http://www.youtube.com/watch?v=sdqnT6wduQg&feature=related

http://www.youtube.com/watch?v=y5RzWgz3WZA

I'd agree Tys,

Its a closed system, with money drifting from the downfolk, back to the founder, with a mob of gullibles in between.

gg

As a Silversnowball web owner I would like to refute the claim that its a pyramid scheme or a scam.
First, the definition of a pyramid scheme is where nearly all of the assets gos to the person at the top.
Second, the definition of a pyramid scheme is that you can never make more money than the person above you.
Third part of the definition of a pyramid scheme is that you get some thing of little value to market.
None of this applies to Silversnowball.
To start with, it only has 2 levels, so by a fourth definition its not a pyramid scheme.
To address the other 3 issues.
In silversnowball any individual can make more money, or acquire more silver coins than the person through whom they sgined on with.
There is no limit to how much the person under you makes.
That deals with the first and second points.
Third. You do get some thing of real value, a 1 oz silver coin every month, even if you don't bother to market your site as well.
And to address the issue of you paying more than the market price for the silver coin.
The extra money gos into the website, and hosting that you get when you join to run your business. And the general administration costs.
Yes, you don't get the coin at spot price, but nobody but futures traders do.
And your still getting the silver coin cheaper than through some dealers, and the coins are posted to you, so you don't have to drive into town to buy them.
And last of all. You will never run out of buyers, any more than a car maker, or washing machine maker will run out of customers. Theres just too many potential customers to ever worry about that. All the silver in the world would literally run out long before you get close to getting to a fraction of all your potential customers.

Try selling half an ounce of silver mate, or even 10oz.

I know the price, but where is the market?

And talking of metal, I do hope you get your money back before the coppers knock on your door.

gg

 

[Ruby]

It sounds very much like an Amway-type scam. Whether you call it a pyramid or some other name, it amounts to the same thing. It seems like money for jam - after all, how hard can it be? But in reality, the people at the top get rich at the expense of the brainwashed hordes at the bottom, who work slavishly to recruit new members and dream of untold wealth just around the corner.

If these schemes worked, everyone would be in them.

Riveroak, I hope you make money, but I think you will be disappointed.

 

[Tysonboss1]

Re: Silversnowball. Not a scam

As a Silversnowball web owner I would like to refute the claim that its a pyramid scheme or a scam.
First, the definition of a pyramid scheme is where nearly all of the assets gos to the person at the top.
Second, the definition of a pyramid scheme is that you can never make more money than the person above you.
Third part of the definition of a pyramid scheme is that you get some thing of little value to market.
None of this applies to Silversnowball.
To start with, it only has 2 levels, so by a fourth definition its not a pyramid scheme.
To address the other 3 issues.
In silversnowball any individual can make more money, or acquire more silver coins than the person through whom they sgined on with.
There is no limit to how much the person under you makes.
That deals with the first and second points.
Third. You do get some thing of real value, a 1 oz silver coin every month, even if you don't bother to market your site as well.
And to address the issue of you paying more than the market price for the silver coin.
The extra money gos into the website, and hosting that you get when you join to run your business. And the general administration costs.
Yes, you don't get the coin at spot price, but nobody but futures traders do.
And your still getting the silver coin cheaper than through some dealers, and the coins are posted to you, so you don't have to drive into town to buy them.
And last of all. You will never run out of buyers, any more than a car maker, or washing machine maker will run out of customers. Theres just too many potential customers to ever worry about that. All the silver in the world would literally run out long before you get close to getting to a fraction of all your potential customers.

Look, In the silver snowball system you pay $42.50 for a coin you can buy else where for $20. So staight away you are losing out.

However, Most people that have joined seem happy to over pay for 1 coin per month because they are banking on recieving free coins, But free coins can only be attained by signing up further members to over pay for 1 coin per month.

And how are you going to get others to over pay for 1 coin per month, They promise them free coins if they sign up another bunch of people to over pay.

There is nothing you can say that stops this being a pyramid scheme.

Each person that signs up can only make money if he signs up further members, so the base of this scheme has to keep expanding, and it is a mathamatical fact that over 75% of members will eventually lose out.

 

[Junior]

Re: Silversnowball. Not a scam

As a Silversnowball web owner I would like to refute the claim that its a pyramid scheme or a scam.
First, the definition of a pyramid scheme is where nearly all of the assets gos to the person at the top.
Second, the definition of a pyramid scheme is that you can never make more money than the person above you.
Third part of the definition of a pyramid scheme is that you get some thing of little value to market.
None of this applies to Silversnowball.
To start with, it only has 2 levels, so by a fourth definition its not a pyramid scheme.
To address the other 3 issues.
In silversnowball any individual can make more money, or acquire more silver coins than the person through whom they sgined on with.
There is no limit to how much the person under you makes.
That deals with the first and second points.
Third. You do get some thing of real value, a 1 oz silver coin every month, even if you don't bother to market your site as well.
And to address the issue of you paying more than the market price for the silver coin.
The extra money gos into the website, and hosting that you get when you join to run your business. And the general administration costs.
Yes, you don't get the coin at spot price, but nobody but futures traders do.
And your still getting the silver coin cheaper than through some dealers, and the coins are posted to you, so you don't have to drive into town to buy them.
And last of all. You will never run out of buyers, any more than a car maker, or washing machine maker will run out of customers. Theres just too many potential customers to ever worry about that. All the silver in the world would literally run out long before you get close to getting to a fraction of all your potential customers.

Maybe it's not a Pyramid Scheme...could be more similar to a:

Ponzi Scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

(from Wikipedia)

 

[skc]

Seminar speaker: "First, let me assure you that this is not one of those shady pyramid schemes you've been hearing about. No sir. Our model is the trapezoid scheme, guaranteed to give you an eight-hundred percent return...."
(sirens are heard, and he jumps out the window)

The Simpsons episode "I Married Marge" - when Homer attends a seminar entitled "Million$ for nothing."

http://emsrelto.blogspot.com/2004/12/trapezoid-scheme.html

 

[Ruby]

Re: Silversnowball. Not a scam

Maybe it's not a Pyramid Scheme...could be more similar to a:

Ponzi Scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

(from Wikipedia)

Quite so, Junior. A business cannot succeed or be profitable unless it generates cash flow and has repeat business. To do this you have to offer goods and / or services that people want, and may want again, in exchange for money.

Sure, this scheme generates cash flow - if you want to call it that - in the $42.50 initial payment, but all they get for that is a coin worth half that value and the right to onsell the scheme. There is no repeat business either - people are only going to outlay the $42.50 once. A few people always make money out of these things, but the majority don't.

 

[Tysonboss1]

Re: Silversnowball. Not a scam

Sure, this scheme generates cash flow - if you want to call it that - in the $42.50 initial payment, but all they get for that is a coin worth half that value and the right to onsell the scheme. There is no repeat business either - people are only going to outlay the $42.50 once. A few people always make money out of these things, but the majority don't.

Hi Ruby,

To be part of this sham you have to sign up and buy 1 coin for $42.50($20 actual value) every month from the person that signed you up. this then gives you the right to claim the free coins you get from selling $42.50 coin to the people below you.

For example I sign up and buy one coin per month for $42.50 from you then I sign up another 6 people who buy a coin every month from me so i cecieve 1 coin for $42.50 and 2 free ones from the 6 other fools.

 

[Ruby]

Re: Silversnowball. Not a scam

Hi Ruby,

To be part of this sham you have to sign up and buy 1 coin for $42.50($20 actual value) every month from the person that signed you up. this then gives you the right to claim the free coins you get from selling $42.50 coin to the people below you.

For example I sign up and buy one coin per month for $42.50 from you then I sign up another 6 people who buy a coin every month from me so i cecieve 1 coin for $42.50 and 2 free ones from the 6 other fools.

Oh......... I misunderstood. In that case I am even more baffled. Why would anyone want to buy a coin every month for twice its value, in the hope that the people below him in the chain will continue to do the same? Certainly the guy at the top is generating good cashflow!

 

[Garpal Gumnut]

http://emsrelto.blogspot.com/2004/12/trapezoid-scheme.html

From Pat Petrini. All you needed to know about snowballs in hell, but were afraid to ask.

gg

 

[Ruby]

At least with some multi-level marketing schemes there is a product which can generate cash flow and repeat business. This snowball thing doesn't have that.

 

[matty77]

I am thinking of starting something up similar, we will call it the "Golden Coin Snowball Scheme"?

whos in?