How A Ponzi Scheme Works 

a story goes like this , a farmer had a very sick horse, when city bred MBA relative, who visited the farm said , they could make money selling the horse. the farmer was perplexed, he asked who will buy this sick horse.The MBA guy said he will take care of it , but wanted half of the sale money.the farmer agreed. the guy , went around the village and said, there is a raffle happening at the farmers place , buy a ticket for a dollar , if won , they will get a horse. on that particular day 1000's turner up. all bought raffle to try their luck. a draw happened, and one person won the horse. he was given the horse. rest left. after couple of days , the guy who won the horse came back and complained the horse had dies. no problem said the MBA guy. and returned the dollar he had spent on the raffle . the farmer had save the cost of disposing the horse , made money out of the sick horse, the MBA guy got his share and went back to the city to do what he was best at.

Best explanation and presentation I've ever seen on RU-vid, internet was kinda awesome till early 2010's later turned into a clickbait drama garbage.

So it seems i would have to invest early on in a Ponzi... Hmmm...

Straight to the point I miss this kind of content. It's always a 5 minute intro for a 1 minute of information.

Jesus Christ this video is explaining everything I needed for business law that actually makes sense

Hands down the best video about the ponzi scheme in youtube, short, clear, well explained!.

Very illustrative and fun. Well done, guys!

Can you do one explaining the difference between a ponzi scheme and a Multi Level Marketing scheme?

I like this style...funny, interesting and gets the point across

When you love what you do, you would do anything to get it back like your account and your community, it's like a metaphor for being your father and the channel and the community your children doing everything they can to get it back, thank you *decodeexpert* for everything and give us an example that you fight for what you love ❤️❤❤

Appreciate the explanation. And such cute drawing! 👍🏽👏🏽

If Ben takes investor money from the first row... how does he make a big return to create the initial buzz which gets the first row recommending clients for the second and so on? And where does this leave Ben for any profit? I never understood

thanks for the vid i needed this for a class really helpful and quick

What an awesome demonstration video of Ponzi scheme guys!👍

Sounds like Amway, Herbalife, and NuSkin.

Not sure if you'll reply to this? Very helpful video! I would love to know who did the character doodles!!! They're amazing.

Simple and to the point, THANKS!👍🏿

this is the first time ive heard ponzi scheme, and did a little google on it just now. so doesnt the bank also run on a ponzi scheme?

Great demonstration!

Explained quite well for those not "in-the-know"... 😉 Nice job indeed. I love this! 😉 💜 🍀 🎶

0:29 i swear tht girl under tht girl was a tree!

Excellent I got it now . Made it so simple . Thanks

“Just ask Ben.” 🤣😂🤣

great video. Thanks!

I was about to get sucked into that! Sounds just like it. Also, same thing w/ CutCo

nice and ti the point

This is cute and easy to understand. Thank you

But the 3 dudes that followed Ben got a good sum and didn't go to jail :D

Nice video. Thanks !

sounds like the us economy

simple and concise ...

Superb

Awesome!

can you do one about the greece situation?

Flash to now, where in every RU-vid ad a guy is trying to get you to invest in a e-commerce business where you literally “invest” in his products and calls it drop shipping. It’s almost the same thing as this

Thanks for this :)

all I learned is that I have to be at the peak 😂 , anyway great video ❤

What a perfect explanation

I want to dubbed this video in Urdu language. Can use this clip

I can't imagine how hard it would be to decide to take on a moneygetback role of scammed persons. The history needs to be remembered though and the help that was born through such pain and suffering. Mad respect to these *Flamepycrack* that take on these roles. 0:05

0:10 - 0:22 that’s where I’m lost 🤨. How does he gives returns if the people invest in a compagny that dosen’t exist

Great video thanks :)

excellent

Gerald Celente is always talking about Ponzi Schemes. He's pretty much on the ball about his info. Heck I even made a shirt with his face on it and the caption below "You are a Ponzi Scheme"

At the beginning of the ponzi scheme, where does the money come from to pay the very first investors?

Are you explaining how the bank works? What's the difference?

WOO HOO! I LOVE THAT!

Did someone see the tree guy?

I hope been learned his lesson

same thing

well done

GOOOO BEN!!!!

just take out the word scheme after "multi level marketing" and their you go thats the difference.

Hi, I work for the Evening Standard in London. We would like to use your explainer to illustrate an article on fraudulent financial schemes. We would credit you. Please get in touch, thanks

How did he make money the first year?

What if ben goes back to the bottom and invites more people re invests with them and the next person to the top gets the investment and so turn the piramid into a circle

So if Ben asks me to invest I'm gonna ask am I in the top of your Ponzi pyramid.....and if yes I'm gonna invest everything.

Good drawings, i like them :)

Ponzi schemer will only ask you to invest in something. You won't be asked to take any more action than handing over money. He or she will claim to take care of the rest and give you your returns later.ONLY Claim On the other hand, a pyramid schemer will offer you an opportunity to make the money yourself. It requires more work, though: You have to buy the right to start a franchise and start recruiting more people like yourself. The recruits will often pay the recruiter a cut of their profits.

The Madoff scheme

Exactly.

Multi level Marketing schemes require the investors to do something. also they aren't always a fraud.

WOOHOO!

This is a pyramid scheme not a ponzi scheme, in a ponzi scheme there's only two layers, the orchestrator and the investors.

Thank you *Clockluis8* for the effort you put in helping I and others who have been victim of scam. Your effectiveness, honesty and calmness is astonishing. The world needs more like YOU😊

1:08 smart boiz.

Dj Envy & Cesar 😂

Ben ... Bernanke ?

AMBERGOLD

It's the same concept with a different name.

Wait so does the person who starts the scam get money at the end? I still don't understand of redistributing money gets the creator anymore of you're just giving it away

"Ponzi Scheme works" is an oxymoron.

Ben is now pleasing a lot of men where he is now

In our days they do this on Instagram

Search emgoldex, they have the same type of investment strategy like the ponzi scheme

ive always heard of it being called a pyramid scheme never ponzi. cool stuff.

NICE

🤔 interesting

Sounds like a bank to me

but how does ben get the money to pay the original 3 investors?

banks work exactly like that and they are legal

Cough cough Amway

Well not EXACTLY, I suppose, but I'm sticking with it. Term; Ponzi Scheme fits nicely for what I'm describing:)

"SO...."

Maaaan fk Ben!!!

It's like needing to explain it using rainbows. One rainbow, double rainbow and triple rainbow. Like a triple rainbow is a psychic internet hybrid technology of forensics, a double rainbow is like autism and a single rainbow is like common sense. Regarding making a 4d map of sending a rainbow to someone using a triple rainbow. Like the Force Field sciences of the double rainbow and triple rainbow explain how they are like a single energy form. Like there is only logically ever a triple rainbow because of reileighs scattering...

Nice video, please, let me reupload the video , thx u

Trickle up works.

Imagine someone named John starts a company claiming to invest in a lucrative opportunity like real estate or foreign currency trading. He promises investors high returns within a short period, say 20% profit in just one month. John convinces the initial investors to put their money into his company. As the word spreads, more people become interested and invest their money with John. Instead of actually investing the money, John uses the funds from new investors to pay returns to earlier investors, creating the illusion of profitability. Some early investors may even reinvest their returns, further fueling the scheme. As long as there are new investors coming in, John can continue to pay returns and attract more money. However, since there are no real profits being generated, the scheme eventually collapses when it becomes impossible to recruit enough new investors to sustain the payouts. When the scheme unravels, investors lose their money, and John often disappears with the remaining funds, leaving investors with significant financial losses.

I still dont get it 😭

Hahaha, sounds exactly like church

Hey hey heyyyyy wasa wasa wasa

The housing market explained in 84 seconds!

so I should probably be first in line to a ponzi scheme investment?

Missed to inform of how he made money to pay double to the first investors

the schemer offers the first set of investors a % return on their investments that is cannot be contested by other investments.

Is this how ACN works???

How does Social Security work?

this is the same with video game's the make the same game every yr than say hey it's new and make idk 2 billon$

*hehehehe*