I got to know about this AutoSurf thing today from a friend and I have to admit it's a very tempting way to earn money. In particular he introduced me to a company called 12 Daily Pro (Google for them... I'm not going to link to them).
I don't intend to harp on the virtues of making money through AutoSurfing lest I tempt you into signing up. No... I'm here to tell you why you should not join such schemes. I will be basing this post on the model of 12 Daily Pro (other AutoSurf providers operate in a similar way).What is AutoSurf?
At the most basic level, AutoSurfing is a way of making money on the Internet simply by watching ads. In the case of 12 Daily Pro, members need to watch a minimum of 12 ads per day and in return the member earns a return of 12% of his initial investment! Sound great doesn't it?How does one earn money from AutoSurfing?
Now you may be asking; do I have to pay money to earn money? The answer to this question should be obvious... yes! You definitely do.
12 Daily Pro insists that each member perform an "upgrade" to their accounts in order to profit from their operation. Each "upgrade" unit costs USD6 and lasts for 12 days. The amount of money you pay for your upgrade must be a multiple of 6 with a maximum "upgrade" payment of USD6000. The member earns 12% of the sum paid for the "upgrade" each day he fulfills the ad quota (yes, you read right; 12%).What returns can I expect?
Let's say that you fork out USD6000 and watch 12 of their ads for 12 days. After the 12 days are up your "upgrade" expires. Let's do some simple mathematics:
Payment to upgrade: USD6000.
Daily Interest: 12% of USD 6000 = USD720.
Total earned after 12 days: USD720 * 12 = USD8640.
Holy shit! That's a profit of USD2640 after 12 days! That means a return of 44% after 12 days! Even Ah Longs (loan sharks) don't earn that much.
By now I hope alarm bells are ringing in your heads. If they are not then you are probably already familiar with this scheme.
Just how exactly does a business afford to pay it's investors a 44% return after 12 days of investment? Well if you think it's impossible then think again. It's actually very simple. Have you ever heard of the term pyramid scheme? There's one caveat though, there are much more losers than winners.Pyramid Schemes
Yes the dreaded pyramid scheme model has been brought to the Net. Unfortunately 12 Daily Pro is not the first operation to bring this scheme to the Internet and no doubt it will not be the last.
What happens in a pyramid scheme is this:
- Members are promised hefty returns on their investments.
- Members get interested and pump in money.
- Members are given incentives to get new sign-ups. Often the upline member is given a commission of the earning of his downline.
- Members are paid their promised returns.
- Members are encouraged to re-invest their earnings into the system to gain even more profit.
The above is true for 12 Daily Pro except for item 3 as 12 Daily Pro gives the upline member 12% of the "upgrade" fee paid by the downline member. No commision is given from the downline's earnings.
Now if you look at the 5 points highlited above you might have noticed a glaring omission. How exactly does the company operating the scheme earn money to sustain their payoff to members? Where do the profits come from?
12 Daily Pro claims that they earn money through avenues other than collecting "upgrade" fees. Examples mentioned in their website include advertising and off-site investments. Seriously if you believe this than you are quite a fool. The ONLY way for them to raise enough money to pay off their members is through the "upgrade" fees of members alone.
Now what happens when the company reaches critical mass? What happens when inflow of cash from new recruits seize to be enough to pay for the commission of existing members? Well for the company there is only one thing they can do and that is close shop and run away with your money. That my friend is the modus operandi of all pyramid schemes.Summary
I hope this short article has given you a good idea of why you should not bother wasting your hard earned money on AutoSurfing. If it's not already clear enough let me reiterate:
- Your investment is extremely high risk. On a scale of 1 to 10 I elect to choose 11. Whatever amount of money you decide to put into the scheme you may lose it the very next second. Really, I'm not kidding.
- Pyramid schemes by nature will fail and usually in a short span of time. Expect them to fail after a few months.
- There will be victims... it may not be you yourself but it may be your downline who is likely to be your friend or family.
I have to admit that it's also possible to earn money from this scheme. However be well aware of the risks and don't drag any innocent people down with you.