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Mmmzr: The next Million Dollar Homep.. Ponzi Scheme?


Mmmzr

Mmmzr is a new advertising site. It claims if you advertise there you'll get 'twice your money back'. The way it works is by charging an exponentially higher fee each time, so the first advertiser pays $1, the second pays $2, the third pays $4 and so on. At each step the previous advertiser gets a portion of his original money back until after 2 iterations you get 'double your money'.

Seth Godin says "sites like this are going to keep changing the rules." Unfortunately, Mmmzr seems just like a variation of the ponzi scheme to me, a classic form of fraudulent investment scheme that relies on ever increasing suckers signing up to pay out the people at the bottom. At some point the biggest investors should hit a ceiling and won't possibly get any money back, while the owner of the site gets rich. Luckily for Mmmzr, they should get away with it as they can claim they're 'selling advertising' rather than just taking money for abstract investments.




October 27, 2006 | Posted by peter | Comments (12)
Comments

At the beginning, it is a ponzi model. I clean up the whole row and double my money with in a week.

however, as the price goes up, people are not look for money anymore. Are you going to make a 8000 dollar bet than the next sucker will pay 16000 to top you?

And don’t call it yet another million dollar homepage..As long as it bring attention to the world, it works…and what’s wrong about it?

Posted by: ahkip at October 29, 2006 03:16 PM

People were similarly positive and experienced similar positive results at the start of the Ponzi scheme too.

And why wouldn't someone spend $8k in anticipation of receiving back $16k? The amounts are arbitrary. There are less people who'd do it, but the model works the same as spending just $1.

Basically it's a really clever scheme with an added element that (probably) makes it legal. I'm not running it down, but I think it's important someone steps up and calls it out for what it is.

Hey.. perhaps we should all start our own? :)

Posted by: Peter Cooper at October 29, 2006 04:19 PM

I just did a simulation of the payments, and excluding PayPal's cut.. he should have made $14855 (profit) from the experiment so far. That's $2561 on the column waiting for a $8192. However, if he sells the $8192, he has to make payouts of $6144 to the people below, so he only has an actual spendable profit of $2048 on a single column.

So if you want to work out his 'true' profit (as in, money he can spend without getting stung later on), it's the amount for the box two below the currently waiting box.. giving a total profit of $11,264 so far, I think.

If he sells all of the columns up to $16384, he'll have $60935, or a true profit of $28672.

Corrections for my math gladly accepted.

Posted by: Peter Cooper at October 29, 2006 04:37 PM

First in first served and I do not think this can be successfull as the first student guy.

Posted by: Google Adwords consultant at October 30, 2006 12:03 PM

http://tagspage.com is a much better and cheaper solution. Your tag is displayed for one year on the homepage (PageRank 7) and also on the 3 free tags pages (PageRank 6)

Posted by: Toni at October 30, 2006 07:49 PM

I like the idea of mmmzr but I like mine more. I has been up for only 3 days and It's filling up pretty fast! The only bad thing is that I already spent all the income getting the site advertised so the people who buys gets visits and not only a promise.

Posted by: Cristian at October 31, 2006 06:19 AM

Anyone else noticed how the prices just went back down again on Mmmzr and how some ads were removed?

Posted by: Peter Cooper at October 31, 2006 10:36 AM

Tadashi made a big mistake there. I hope that doesn't affect his business, because future advertisers can lose hope on the page because of that.

Posted by: Cristian at November 1, 2006 03:03 PM

Try Cash Columns. It's the same deal as mmmzr, but prices aren;t through the roof yet.

Posted by: Brian at November 5, 2006 02:47 AM

Try Piddypine.com

A truly new idea.

Posted by: P.W. at November 10, 2006 09:07 PM

Hi,

I have a better idea. It's called bidvertising where u bid for ur space.

Have a look at http://www.humangai.com

It's a unique advertising programs.

Posted by: sputera at November 11, 2006 05:28 AM

I would say your idea has been done already...to death. And besides your "ideas" have an end...you will run out of pixels, words etc.

With www.piddypine.com...there will always be more topics for people to buy vote ads on.
And we are looking for partners to share our profits with

Posted by: P.W. at November 29, 2006 08:38 PM

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