- Madeira is at the moment in a fever over a magic money making pyramid biz called Telexfree.
"No it's not a pyramid, it's a sales business which gives you 'the job' of selling VOIP and internet advertising." say it's promoters
Telexfree pyramid biz summed up
There never is any free money coming into Madeira
1. If you follow it through people at the top of the pyramid are simply borrowing money from people further down, and a huge debt is being built up.
2. Oh and the argument is that the people behind such pyramids are not nice people. They are criminals, mafia and terrorists who use these profits for bad things, so by participating in the game you are funding trafficking, prostitution, corruption and terrorism
If it looks like a duck
This Telexfree Pyramid "pass the parcel" business that half of Madeira is a caught up in.
- "It's great it's not a pyramid" shout all the true believers
- If it looks like a duck & quacks like a duck, it's a duck
- If it looks like a pyramid business, and acts like a pyramid business
... it is a pyramid business
.... no matter how much spin and lies it's PR people put out
- eventually Telexfree will collapse and people last in will lose all
.. when either all banks will not do business with it or there are no new "investors"
- the mlmskeptic websites list the past magic businesses which were the same and then collapsed
MLMskeptics list good info
- The Main MLM Discussion on Teexfree is very informative
Telexfree 2014 London office is mailbox address of many, rather than actual office
also links to a Portuguese report
Is TelexFree Playing Payment Roulette
end will come as payment processors & banks refuse to work with it
It's just a game of pass the parcel
.. they pay your money to someone for a non..job
.. they are happy
.. they test by withdrawing money
.. confident they re-invest
.. Telexfree now use your money to pay them
.. as long as it keeps growing with new money they can pay everyone, but there's not enough money to pay everyone at the same time.
.. when all banks stop working with it the music has stopped
Telexfree pyramid explained using example of Phil's Never Ending Free Beer Party
- I can simply illustrate how it works.
Imagine Phil's Never Ending Free Beer Party FBP
(* TOO GOOD TO BE TRUE)
Phil is the King of Beer, and he invites you to the free beer party, where there is free beer until the music stops.
* THE BUY IN : you just need to bring 10 beers each to begin
* THE "FAKE JOB" each round you must "advertise FBP" shouting "Ra ra Phil is king of beer FBP !"
- THE PAY : for that you are paid 1 beer per round
* but Phil is King of Beer so he gets 2 beers each round
imagine 9 people begin, with 90 beers on the table
So each round they drink 1 each plus Phil drinks 2= 11 beers
- so after 8 rounds then 88 beers gone and only 2 are left, an 18 beer deficit , .. Oh my God 9 people have "lost" 2 beers ! the music almost stops
* NEW PEOPLE TOP UP : Yes after all that advertising 3 new people turn up with 30 beers, so now 32 beers on the table & 14 beers get drunk each round
- Round 9 - the beers get drunk leaving 18
- Round 10 - everyone drinks leaving 4
* THE PROFIT : The original 9 people are about to enter profit, the 3 new people are still down by 8 beers each
* NEW PEOPLE TOP UP 2 new people turn up bringing 20 new beers, so now 24 beers on the table & 16 get drunk each round
* Round 11 the beers get drunk , the original 9 are in profit by 1 each, the 2nd 3 are down by 7 each, the new 2 are down by 9 each, so they need 39 to break even, but there are only 8 on the table, a beer deficit of 31
* Round 12, 2 new people come so now 28 beers on the table .. The music continues, the beer party continues.
* THE BLIND FAITH
* "I'M DOING NOTHING WRONG, I'M JUST EARNING FREE BEER" shout the original 9 who have all profited by 2 beers,
* THE BLIND FAITH "I'M GOING TO BE IN PROFIT TOO SOON" shout our new 7 people
* HATE FOR DOUBTERS
* GROWING OBLIGATIONS
BUT as the party continues the beer deficit is getting bigger and bigger.
It might go on for 40 rounds or 50 rounds, but eventually something will happen, like :
1. Not enough new people come
Or 2. The police breakup the party
* THE MUSIC STOPS
* THE DEBT TO PEOPLE DOWN THE CHAIN.. And by then the beer deficit will be huge
...and you will have 500 people saying "hey, you originals have all had free beer and I am still down by 8 beers, you must give me a beer" and they'll be a riot , especially since all the new people are usually relatives and friends of people further up the chain.
* THERE NEVER WAS ANY FREE BEER : you were simply borrowing from people further down the chain,. You were building up a debt to people further down the chain
* THE LOSSES cos Phil has been taking 2 free beers each round the beer debt that original people have to people below them, will be bigger than the number of free beers they have all profited from
... So overall the pyramid will have taken more beer/money out of Maderia than it brought in .. Boo hoo
- Oh and the argument is that the people behind such pyramids are not nice people. They are criminals, mafia and terrorists who use these profits for bad things, so by participating in the game you are funding trafficking, prostitution, corruption and terrorism.
eg 2Stew's Free Beer Pyramid game
This is the original more complex example
In the example below I mark all the key signs of a pyramid with an asterisk *
let's play Stew's Free Beer Pyramid game it's a "pass the parcel" pyramid game just like Telexfree
Let's take Team Soccer Superstars to Bar Santander
* TOO GOOD TO BE TRUE
- I say guys I have a magic moneybox it will generate all the money for our beer
* THE BUY IN
You all put in €10 into the box, and we'll take the money for the beer from there,
but it is a magic box so as the long as music doesn't stop we can drink free beer
* THE FAKE JOB
- you all just have to do a little job for me. After each beer I want you to go into the other bar and Advertise for me by going in intio the other bar and shout "Mr Green is a great guy"
- and when you want to leave I can give you your €10 back
but you have to have 3 beers first
- 1 player didn't join so it was 10 players and me
they all put in €10 so there's €100 in the box
They are drinking €1 beers
I am the organiser so I didn't pay in and I am drinking whiskey @ €2
So we spend €12 each round
round 1, 2, 3
that's €36 spent leaving €64 in the box
- Ronaldo wants to go home to do more training, cos he's a "goody 2 shoes", so I give him his €10
- Same for Beckham
- OK now we have €44 in the box and 8 players plus me round 4 and 5
now we have €24 in the box
Pele doesn't believe the box is magic so asks for his €10
- Maradonna has to go
- I pay them both the music slows for a second (I know there is only €4 money in the box)
- Pele says "wow" and changes his mind
- we put his €10 back in - Wayne Rooney says he wants to carry on but he wants 2 beers each time so he puts in another €10
* NEW PEOPLE TOP UP
- and Keegan phones his brother to come , and puts in another €10 for him
- AND with all the guys shouting each time 2 new players have also come in from the next bar Now €54 in the box total and 11 beers each time
- round 6 and 7 the same story we spend €26 now €28 left
..same story someone want to leave, I pay him, but all the advertising/shouting means new players keep coming in
after round 10 original players have had 10 beers, but new players have entered the game and put €10 into the magic money box so the game continues
* THE UNREAL PROFIT : now the originals are getting free beer
* THE BLIND FAITH
* "I'M DOING NOTHING WRONG, I'M JUST EARNING FREE BEER" they shout
* "I'M GOING TO BE IN PROFIT TOO SOON" shout our new people
* HATE FOR DOUBTERS
* GROWING OBLIGATIONS
* SWITCHING SUPPLIERS COS THEY WONT SUPPLY ANYMORE
... few more rounds and the bar owner is worried cos he knows maybe one day there will not be enough money in the magic box to pay for all the beers so we leave Bar Santander and go to Bar Banif
- and so the game continues ..but we get kicked out of Bar Banif, and then another bar and then another bar
.. but one day we've been kicked out of almost all the bars ..and also we have no new players to come into the game
* the music stops ..and I run
..the original players are all happy having had 20,30,40,50 beers each,
but thousands of new players have just entered the game have put in €10 and haven't had 10 beers yet so they come shouting to their brothers and friends who got them into the game
Is the Real Estate Market a pyramid ?
- Telexfree are full of bullshit excuses, that they the same as any other investment .. no they are not. other investments are all kind of guaranteed..
However the house market is maybe the same. A house is worth something, but the price is based on an inflated value, cos the market anticipates a continuous new supply of brand new customers .. but you get a war or mass emigration so that people want to sell but not buy ..the bubble would burst like a pyramid.