How People Are Led Into Ponzis

In every scheme,be it a clear Ponzi or straightforward scam, there is a need for Shills.

A Shill is a person who seems to be 'just like you ' and has received great benefit from the scheme.

Those who create the scheme actually hire people to act as Shills in the initial stages. Then, they are augmented, sometimes replaced by fools who fell for the scheme, got some benefit, then run around touting it. Unlike the first batch, they aren't paid and have no idea they are perpetrating a scam.

Paid Shills know it is a Ponzi scheme and are paid rope in suckers. They know that those they bring in will be ripped. They know they are tricking people to invest.

"Oh, I put $100 in the Ponzi and got back $200 in one week !"

or

"I posted an article on Factoidz yesterday and it already made $10.00!"

People hearing/reading this think; "If s/he can do it, so can I!" and join the scheme.

In all Ponzi schemes there is the first pay out. This first payout proves the scheme is legitimate to the sucker. That fool, who was paid that first time will act as a Shill and rope others into the scheme.

"I joined Scheme and put in $100 and in one week I made $100!! "

or,

"I have 100 articles on Bukisa and made $10 last month, and have one on Factoidz and made $10 in one Day!!"

This kind of contagion, where shills create new shills is the basis of a Ponzi.
Nothing sells a scam more than 'satisfied customers'.

A Shill, whether aware or not, is the Judas Goat who brings the Sheep into the slaughter house.

He stands at the card table, 'wins' then steps aside to allow others to be ripped off.

He brags about how much money he made so that others assume the guy who
lost his rent is just a loser, not a real example.

On rare occasions an innocent person is used as a Shill. The Innocent is duped into believing in the Ponzi so invites others in the belief that s/he is doing a good deed.

Shills have limited life spans.
They are the ones the public sees and can attack. Further, there are always others ready to take the Shill's place.

Hence the Shill who last month was crowing about the scheme, testifying to
the sums of money s/he gained, is this month counting losses.

One of the most hardworking Shills is often the Old man who has nothing to do.
He will devote the empty hours of his life to recruitment until replaced by another one.

Never 'tout' a scheme unless you are paid to do it. If you are hired as the advertiser, then your role is clear. You are the agent of the Scheme.

If you are an average member of the public, and 'luck' into something which seems too good to be true, it probably is.

You might be in that first batch of 'satisfied customers' who will become unpaid adverts for. Ponzis and other scams. All successful scams must have a crew of 'satisfied customers' who tout the scheme.

In most Scams, whether they run on line or off, the early 'satisfied customers' often go back for a second helping and lose everything.

It may happen that a particular shill is so good at what he does that he's kept around as part of the long con. He probably knows he is a shill and might think he is safe. That he won't be ripped off. But the fact is, shills have a fairly short shelf life.

Shills are always expendable.

Do not think just because you roped in ten people to invest their money, or got ten people kicked off or demoted on a website your 'brownie points ' will protect you.
It won't.

Scammers have no loyalty save to self aggrandisement.
They will use anyone to enhance their gains.

Years ago and now defunct, there was a publishing site called Factoidz. It paid much more to their 'staff writers' than did any other writing site.

Many people were enticed to join that site, and in the early days, they did earn. And most ran around proclaiming the value of the site, ceasing to write for other such sites.

"Well, I stopped writing here when I started to write for Factoidz as I make $200
a month there, easy."

People who are not easily led will question; "How?" If they joined the site, they didn't publicize it. They couldn't be sure it was legit. How could they? They don't own it, they know nothing about it save what it concocts.

Those who joined 'investment' schemes who are sensible will take that first pay out and run. They stand on the sidelines seeing if it lasts, maybe investing a bit of what they earned, because they can't be sure.

In Real Life, if Blueshop was selling microwaves at $20 and all the other shops were selling at $60, the fact those other shops are still in business should alert you that something is very wrong in Blueshop.