Understanding the System: DesertSky Marketing Script Flaw
I've been meaning to post this a couple of days back after my last post, but was insanely busy with a wedding of a good friend, which completely slipped my mind (right....some good friend I am).
In my last post, I mentioned that people were not understanding the product but did not elaborate on it. I'll try to elaborate on it in the simplest terms possible.
The script DSM runs on allows compounding, which isn't a bad thing as everyone thinks. In fact it's a godsent, considering it saves both the administrator and the members transaction fees in e-gold and other processors used. It's something I've mentioned in my simplistic guide on surf programs. People compound anyway if internal compounding is not allowed. They can merely cashout and redeposit, so in itself is not an issue.
However the real problem is that the script does not account for internal compounding as payouts. When you compound internally two things happen:
1. You cashout
2. You redeposit
And it's done in that order. In the DSM script, the redeposits are actively shown, but the cashout portion is omitted, whether consciously or unconsciously. Hence creating a huge gap between daily deposits and payouts, in short the gap between deposits and cashouts are an inflated figure. This causes a false sense of security amongst many of the members, very possibly causing the program to crash at sometime.
The same flaw also occurs in all the programs which have leased the script from DSM. Sooner or later, the gap created will not be sustained and they will eventually crash. Consider this an early warning signal.
And FYI, these are the current programs under the DSM umbrella:
I'm in no way saying the administrators of these programs are dishonest, but they are probably clueless with the potential problems. Let's hope the problem can be retified before further damage is done....if it hasn't already.
In my last post, I mentioned that people were not understanding the product but did not elaborate on it. I'll try to elaborate on it in the simplest terms possible.
The script DSM runs on allows compounding, which isn't a bad thing as everyone thinks. In fact it's a godsent, considering it saves both the administrator and the members transaction fees in e-gold and other processors used. It's something I've mentioned in my simplistic guide on surf programs. People compound anyway if internal compounding is not allowed. They can merely cashout and redeposit, so in itself is not an issue.
However the real problem is that the script does not account for internal compounding as payouts. When you compound internally two things happen:
1. You cashout
2. You redeposit
And it's done in that order. In the DSM script, the redeposits are actively shown, but the cashout portion is omitted, whether consciously or unconsciously. Hence creating a huge gap between daily deposits and payouts, in short the gap between deposits and cashouts are an inflated figure. This causes a false sense of security amongst many of the members, very possibly causing the program to crash at sometime.
The same flaw also occurs in all the programs which have leased the script from DSM. Sooner or later, the gap created will not be sustained and they will eventually crash. Consider this an early warning signal.
And FYI, these are the current programs under the DSM umbrella:
I'm in no way saying the administrators of these programs are dishonest, but they are probably clueless with the potential problems. Let's hope the problem can be retified before further damage is done....if it hasn't already.
posted by spectre at 2:28:00 AM
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1 Comments:
Hello Dustin,
I hope what you typed in the second part of the comment is an oversight, because it makes absolutely no cents (pun fully intended) to me. And most of what you usually type in emails and forums suggests better.
Using your example, if a member upgrades $100, compounds and never requests a payout, he's NOT in profit. He can compound for the next million years and still not be in profit if he never cashes out.
While with internal compounding, he's technically been paid, but you're ignoring the fact that he's also depositing all of it at the same time.
In his profit and loss statement, he's still down by $100. And until he is paid over that $100 in real payouts, he'd forever be in a position of loss.
In short, if you want to use compounding figures to say that a member has received a payout, then you must also acknowledge that he made a new deposit. There is both a debit and a credit here.
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