MMM Nigeria’s number one guider, Chuddy Ugorji, has finally reacted … on January 14, 2017 and everything will be back to normal in no time.
Let’s workout the MMM concept.
Assuming 5 friends Mr. A, B, C, D,and E resolve to render help worth 100,000 each on MMM with 30% return on investment (roi).
Total money in the pool will be 500,000.
Since the fund in not invested anywhere, the dormant total remains N500,000
On request of assistance
A collects, N130,000 from the pool leaving a balance of N370,000
B collects N130,000, leaving a balance of N240,000
C collects N130,000 leaving a balance of N110,000
With the balance of N110,000, it means that the fourth person D can only get his initial capital and 10% roi.
What happens to the fifth person, Mr E?
An economic hole is dug.
For every 5 persons, one person loses his invested capital.
One will ask why is the scheme surviving today?
The simple answer is that the pledged and requested help are not happening simultaneously but for every help, a hole is created.
That means for 500 people, 100 investors will lose their money.
For 1million people, we will have 200,000 destitutes and hole becomes wider and wider daily (you can use your imagination here, with 3million subscribers in Nigeria, 600,000 holes have been dugged).
Some folks will want to somehow continue to believe that the scheme will truly be back by January 2017, but that’s a lie. I’ll tell you why. Everyone will want to get their money out, whose going to provide this “help”?
Dont worry I’ll wait to hear the answer.
Please prove me wrong.