It most certainly is something new. Hard to describe in ways most consumers have grown accustomed to. I suppose it's much like buying tips in advance, then handing it out over time. It's not much different than if someone were to charge a prepaid debit card, then make small purchases. But then it's more like buying a membership that grants access to products and services. Plus you get your money back, plus some, if certain criteria is met. The consumer needs to be reminded they spend the money anyway but this time around they're given rewards, plus the chance of having their money back. Honestly, I've been trying to wrap my head around it for years. It's like knowing a word, it's on the tip of your tongue, but for some reason it's not coming out. Cooperatives exist in this world. I can buy groceries and fuel, then get a quarterly share of the profits, provided I sign up, pay for a membership, and buy products from that establishment. It's similar to that, yet new.
You are viewing a single comment's thread from:
That is a very good description. Because it's a new kind of thing, people tend to get confused and confused people get scared and start calling it Ponzi scheme, a fraud and whatnot. But I think the crucial aspect of it is how it is marketed and what promises are embedded in those narratives.