Wednesday 24 April 2013

How to make easy money (Rs 124 million or USD 2.26 million in 4 years)

I was recently approached by someone with another money making scheme. I declined because I do not trust any scheme where I am promised a lot of money, and am asked to put up a small investment upfront. If someone actually has a real business he simply needs good people to work for him, people who can perform. So I declined the offer. However, let me first tell you what the plan was:

I needed to put up a small sum of money (sorry I did not ask how much). These amounts are usually small like a hundred dollars (INR 6,820) or so. This is a non-refundable fee. Now I was told that I needed to make two groups of 6 people each, who would all have to pay a hundred dollars each as joining fee. Once I have the two teams ready I would be paid a little over 100 dollars (INR 6,000).

Next I would need to work with and help these 12 individuals to sell the idea to another 12 people under them. For each of these 144 individuals I would get 1300 dollars (INR 72,000).

So now I have an overall team of 144+12=156 individuals. I can now add more people at level one or level 2 as I wish.

Let’s say I decide to help level 2 the 144 people to acquire 12 individuals each. This, if done successfully would increase the team size to 144X12=1728 individuals. Once this happens, I get a commission of Rs 864,000 (USD 16,000). Now my team / organization size is 12+144+1728=1884 individuals, in the three levels. I can keep adding individuals at any level. For simplicity sake let us say I decide to work with level three:

I help level 3 to acquire 12 individuals each. If done successfully this would add 1728X12=20,736 individuals to the organization, and I would get Rs 10,368,000 (USD 190,000). I do not know if this sounds good in dollar terms but it certainly sounds good in rupee terms.

Now if we can move to level 5 we will potentially have an organization size of 20,736x12=248,832 individuals. And my commission would be Rs 124 million (USD 2.26 million). So the numbers at this level sound great, but the million dollar question is can we make it work. I don’t think it can work, but if there is anyone out there who thinks it can work, please let me know.

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