MHB Sustainability of pyramid scheme

  • Thread starter Thread starter Ken Somerville
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    Pyramid
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The discussion focuses on the sustainability of a new affiliate program structured as a pyramid scheme, which is legal and involves a product and merchant accounts. It features a 2x2 forced rotator matrix with automatic re-entry at each level, requiring a $300 buy-in for each of the seven positions on the board. As participants cycle through the levels, the apex position re-enters the system, generating continuous profits and potential rapid turnover. Concerns are raised about the long-term viability of this model and when it might fail. The conversation seeks insights into the mathematical aspects of this scheme's sustainability.
Ken Somerville
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I’m about to get involved with a new affiliate program,
before I market this I want to know that it is going to work.

Pyramid (yes, it is legal; there is a product,
merchant accounts used, taxes will have to be paid).

2x2 Forced Rotator Matrix with an Automatic Re-Entry at each level.

7 Positions on Board (only four available to be filled at a one time buy-in of \$300.00 ea).

As the #1 (apex) position leaves that board, they will be re-entered back onto Level 1 board for \$300.00 (taken out of the profits earned), it now looks for its’ sponsor, realigns itself again on its’ sponsor’s board, and continues to repeat the process over and over again to infinity.

As the process speeds up, and moves from daily to hourly, by minutes, by seconds, etc. Is this sustainable? At what point would this falter, or does it?

O Pay position \$1200.00-\$300. (auto re-buy done by computer).
O O Middle positions
O O O O Bottom positions to fill at \$300.00 ea

Thanks for your help. Ken
 
Mathematics news on Phys.org
Re: Hello! I need help with a mathematical query. Please and Thank You

Hello and welcome to MHB, Ken. :D

I have moved your topic to our Business Mathematics sub-forum, as it seems to be a better fit than Analysis.

Typically, responses are posted within a topic, not emailed, and so I have removed your email address from public view just so that it does not potentially fall into the wrong hands.
 

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