Myth of ProfitSharing Programs
If you’ve not been around for the past month or so, the newest rage in town are the profitsharing programs that have appeared in both the AS and Hyip arenas. While they aren’t exactly sprouting up like mushrooms yet, it would be a matter of time before they get copied and replicated. It happened with AS over a year ago, and with the forever-type programs a few months ago. This industry is filled with copycat types, and when a plan works, everyone jumps on the bandwagon and follows the money trail.
The concept behind a profitsharing program (PSP for short) is a simple one. Deposits made into a program everyday are shared out to all members who purchased units or shares. Each share has a cap on earnings and when it reaches that cap, the share expires. Depending on the amount of deposits made on a daily basis, you could meet the share cap in any thing from 2 to 20 or even more days.
There are a number of reasons for the birth of a PSP program. And if the forums and explanations are to be believed, they range from:
No one loses
No fixed ROI
Reserves
Lasts longer
Keeping ‘Hit and Run’ types from destroying the program
No One Loses
Seriously you can’t believe this crap, can you? Unless the administrator is David Blaine and able to produce a wad of cash from his ass, someone has to lose.
As far as I’m concerned, PSP is no different from your everyday ponzi hyip or autosurf. New deposits will be needed to fund the ROI. Sure the rules are slightly different, but the underlying concept is still the same.
The only difference here is that no one loses EVERYTHING. With a PSP, it’s close to impossible to lose everything unless the administrator chooses to run with the loot. However, if you climb onboard late, chances are you’d lose close to everything.
No Fixed ROI
ROI is dependent on new depositors. New money coming in increases the daily ROI. This is what sets it apart from the traditional hyip, AS and cyclers with fixed ROIs.
It supposedly encourages member reinvestment but in reality, it’s no different from all the other traditional ponzis. All require money coming in to sustain payouts. I’ve looked left and right, and all I can see is the same product marketed and packaged differently.
Reserves
Most PSP claim to keep a percentage of the daily ROI as reserve funds to increase the ROI on days that have smaller/fewer/lower deposits.
Personally I see no difference. While it pads the stats slightly for the day, it can’t sustain it in the long run.
Lasts Longer
Perhaps it might last longer than your traditional ponzi, but that’s solely due to membership participation and the amount of new members it can attract on a daily basis. Sooner or later, people will realise it’s the same concept and the fad will eventually die down.
What would be interesting to see are the innovations that administrators take to enhance the product to appeal to members
Keeping HaR out
You gotta be kidding me. Seriously you gotta be kidding me. The way I see it, this is a HaR’s wet dream come true. Barring an admin who outright scams, HaR type have very little to lose and everything to gain here, especially with the type of frenzy PSP are generating.
The key here is that if you join on the first day, chances of losing is very slim. If played correctly you’d receive your full ROI by the second or third day. Much better than waiting for 5-6 days with traditional hyips.
The hole created by HaR players will still have to be filled by those who deposit later. So I don’t see how much different it is from the traditional programs.
Strategies
Everyone’s probably got a different one aligned to the goals one wants to achieve. It can range from maximising profits, protecting principal, ensuring the longevity of a program and many numerous other reasons.
How you want to play the game depends on the rules of the game, the support of membership, your own DD of the administrator running the show, etc.
The point I’m trying to make here is that one should be flexible in adopting a strategy. As Sun Tzu’s Art of War dictates, prevailing conditions determines the plans you undertake. There's no one size fits all strategy here.....or anywhere for that matter.
I’m keeping mine close to my chest.
The concept behind a profitsharing program (PSP for short) is a simple one. Deposits made into a program everyday are shared out to all members who purchased units or shares. Each share has a cap on earnings and when it reaches that cap, the share expires. Depending on the amount of deposits made on a daily basis, you could meet the share cap in any thing from 2 to 20 or even more days.
There are a number of reasons for the birth of a PSP program. And if the forums and explanations are to be believed, they range from:
No one loses
No fixed ROI
Reserves
Lasts longer
Keeping ‘Hit and Run’ types from destroying the program
No One Loses
Seriously you can’t believe this crap, can you? Unless the administrator is David Blaine and able to produce a wad of cash from his ass, someone has to lose.
As far as I’m concerned, PSP is no different from your everyday ponzi hyip or autosurf. New deposits will be needed to fund the ROI. Sure the rules are slightly different, but the underlying concept is still the same.
The only difference here is that no one loses EVERYTHING. With a PSP, it’s close to impossible to lose everything unless the administrator chooses to run with the loot. However, if you climb onboard late, chances are you’d lose close to everything.
No Fixed ROI
ROI is dependent on new depositors. New money coming in increases the daily ROI. This is what sets it apart from the traditional hyip, AS and cyclers with fixed ROIs.
It supposedly encourages member reinvestment but in reality, it’s no different from all the other traditional ponzis. All require money coming in to sustain payouts. I’ve looked left and right, and all I can see is the same product marketed and packaged differently.
Reserves
Most PSP claim to keep a percentage of the daily ROI as reserve funds to increase the ROI on days that have smaller/fewer/lower deposits.
Personally I see no difference. While it pads the stats slightly for the day, it can’t sustain it in the long run.
Lasts Longer
Perhaps it might last longer than your traditional ponzi, but that’s solely due to membership participation and the amount of new members it can attract on a daily basis. Sooner or later, people will realise it’s the same concept and the fad will eventually die down.
What would be interesting to see are the innovations that administrators take to enhance the product to appeal to members
Keeping HaR out
You gotta be kidding me. Seriously you gotta be kidding me. The way I see it, this is a HaR’s wet dream come true. Barring an admin who outright scams, HaR type have very little to lose and everything to gain here, especially with the type of frenzy PSP are generating.
The key here is that if you join on the first day, chances of losing is very slim. If played correctly you’d receive your full ROI by the second or third day. Much better than waiting for 5-6 days with traditional hyips.
The hole created by HaR players will still have to be filled by those who deposit later. So I don’t see how much different it is from the traditional programs.
Strategies
Everyone’s probably got a different one aligned to the goals one wants to achieve. It can range from maximising profits, protecting principal, ensuring the longevity of a program and many numerous other reasons.
How you want to play the game depends on the rules of the game, the support of membership, your own DD of the administrator running the show, etc.
The point I’m trying to make here is that one should be flexible in adopting a strategy. As Sun Tzu’s Art of War dictates, prevailing conditions determines the plans you undertake. There's no one size fits all strategy here.....or anywhere for that matter.
I’m keeping mine close to my chest.
posted by spectre at 12:02:00 AM
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2 Comments:
I don't know much about PSP, but that Blaine spoof was absolutely hilarious!
The whole idea of writing that article was to plant that David Blaine thingy. ;)
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