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Are 12DailyPro and Studio Traffic Ponzi or Pyramid Schemes?  by: Gobala Krishnan Are "paid-autosurf" or "paid-to-surf" programs, the most popular being 12DailyPro and StudioTraffic, a scam? Some people would say they are. Some would disapprove even the use or those derogatory terms. Some don't even care as long as they make money. However, to fully understand and separate the truth from mere propaganda, we need to analyze the terms themselves, and see if it applies. Here's a definition from Credit Research Foundation (www.crfonline.org) of "ponzi schemes" or "pyramid schemes" : "When the organizers of the scheme use the assets of new investors to make profit payments to the old investors. The scheme typically has no other source of revenue other than from the new investors. Ponzi schemes, often called pyramid schemes, progress geometrically until they reach the point that the operators cannot find enough recruits (victims) to continue the payout." Most paid auto surf programs are not based on a multi-level marketing system, which means that they do not rely on new recruits to sustain their modus operandi or business operations. In fact, as a member of most auto-surf programs, recruiting new members is not even required. Even when they do have referral programs, it’s usually single-level or single-tier, avoiding the complications that are part and parcel of MLM programs. The programs owners are quick to point out that autosurfs are not investment opportunities either. You simply get paid to view ads on the Internet, even if those ads can be displayed automatically without your constant attention. The programs owners relate their method of advertising as "similar to television ads". So what's all the fuss about then? It's simple: every new business model, especially when proven to work, will face public criticism and negative opinions from nay-sayers who don't understand why it doesn't fit their description of a traditional business. Often times these nay-sayers are not experts themselves, but rather succumb to their fear due to lack of understanding. People fear what they don't understand, and the same scenario can be traced back in history when AMWAY has to fight public prosecution to prove the legitimacy of their business model. In fact, even the franchise business model (like McDonalds and KFC) was considered a scam in the beginning. “Guilty until proven innocent” seems to be the verdict with any new way of making money. I don't presume to understand exactly how an autosurf program works, but based on the facts and definitions it’s definitely not a ponzi scheme or pyramid system. In time, when the storm has passed, some of these programs will proven their worthiness, and some will fold under the scrutiny and public pressure. Only the true opportunities will remain, and this could be a good thing for everyone. Copyright 2006 Gobala Krishnan About The Author Gobala Krishnan, a home based entrepreneur in Malaysia, talks about the “Last Million Dollars on the Internet” at http://www.Paid-Autosurf.com - His company helps frustrated and underpaid employees turn their passion and inborn talents into a profitable home based business, at http://www.Liberty-Straits.com. This article was posted on February 20, 2006 Read More Articles from the "Online Business" Category: Anatomy of an Online Marketing Failure by John Taylor How and Where To Start by D C Wartenberger Start Your Own Profitable Internet Business... Become An Online Infopreneur! by Craig Andrews Spam and Scams Go Hand in Hand by Denise Hall 7 Tips for Selling Expensive Collectibles On eBay by Sydney Johnston E-currency Trading Is Sweeping Across the Internet in 2006 by Timothy Rohrer The Secret To Mining Online Gold Using The Hidden Profits in Digital Resale Products by Ebong Umana My Space - Is It Getting Too Big? by Keith Gill How To Make Money With Your Own Home Based Business Niche by Dean Phillips Finding Home Business Ideas In Your Own Life by Michelle Waters << Back to "Online Business" Index

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