In this post I want to explain what is Bux sites (form of PTC site) and what is ponzi schemes and what`s the difference between Bux site and ponzi scheme masked as Bux site.
What is ponzi scheme?
First of all let`s identify what is ponzi schame? Here is definition:
As we can see the mine indication for ponzi schemes is that they don’t have a real source of income. They are paying their investors with their own and other investors money. That means ponzi schemes = scam.
They have to recruit new investors who invest money all the time to keep their business running. That’s why they use aggressive advertising campaigns. A good example of ponzi schemes is HYIP (High Yield Investment Program) who claims to triple your money within 24 hours. I strongly recommend you to stay away from them.
By the way they were named that because of famous cheater Carlos Ponzi.
What is a Bux site?
A Bux site is basically the same as PTC site – members are paid for clicking and viewing advertisements. The difference is that Bux sites usually pays around 0,01$ per click while classic PTC sites only around 0,001 – 0,05$ per click.
It follows that Bux sites is way more expensive for advertisers to promote their products, and there are very small number of advertisers who are ready to use Bux sites to promote their products (and why should they when they can get even ten times?).
So, Bux site can’t exists only as middleman between advertisers and visitor (members), because they wouldn’t be able to provide enough sponsored advertisements for their members to motivate them stay active. That’s why majority of sponsored advertisements served for clicking is their own.
So, the mine difference between classic PTC site and Bux site is that Bux site is middleman between visitors and advertisers and advertiser itself too. Can such form of PTC be productive and tenacious?
Let’s take a look at whole process from other side. To earn money as Affiliate you need to have a source of traffic and you have to be able to convert it into sales and/or signups (that can be don by choosing the appropriate product for the traffic you have). Probably you have heard a lot about importance of having a list of sales prospects (potential costumers) to be successful in affiliate marketing. And that’s right; especially when a new product comes out it is important that you have ability to inform thousands of potential buyers.
If you are owner of Bux site, that’s exactly what you have - a list of sales prospects. The difference is that you are paying your potential costumers for viewing your products.
Of course part of the Bux sites earnings still comes from their members (membership upgrades, referral sales etc.), but they have outer source of income and that’s the mine reason why they are not ponzi schemes.
So, how stable the Bux site will be depends on how good marketer the owner is, and how big capital reserve he haw (will after one unfortunate affiliate campaign he will bankrupt or not?).
So, my answer is Yes, Bux sites are not scam until they are paying and they even can become even extremely successful too (there are one great example for that – NeoBux. It’s online now for couple of years and paid out more than 10 millions of dollars already).
What is ponzi scheme masked as Bux site?
So, the ponzi scheme masked as Bux site looks exactly as regular Bux site, but it don`t have any outer income source. Money that’s paid out to it’s members comes only from membership upgrade, referral sales etc. It’s mathematically impossible to keep running business that way for long, because no one will invest if payouts will decrease and it’s impossible to increase payments if no one is investing. The line between Bux site and Ponzi scheme is extremely thin.
A lot of Bux sites become a ponzi schems after their owners fails to succeed in affiliate marketing and they have to find a way to get their members to invest more and at the same time how to pay out less, and these ways are usually fraudulent. (one of the best known examples is Bux.to. They sold fake referrals)
Conclusion and Advice
There is no way you can tell whether it’s a Bux site or ponzi scheme masked as Bux site, so all you can do is be careful. Most likely if you will join a Bux site that is ponzi site You will be able to still receive few payments before it stops paying or disappears.
My strategy is simple. Don’t invest too much or don`t in vest at all in new Bux sites and when you earn something invest it in highly trusted PTC sites.
What is ponzi scheme?
First of all let`s identify what is ponzi schame? Here is definition:
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually offers returns that other investments cannot guarantee in order to entice new investors, in the form of short-term returns that are either abnormally high or unusually consistent.
As we can see the mine indication for ponzi schemes is that they don’t have a real source of income. They are paying their investors with their own and other investors money. That means ponzi schemes = scam.
They have to recruit new investors who invest money all the time to keep their business running. That’s why they use aggressive advertising campaigns. A good example of ponzi schemes is HYIP (High Yield Investment Program) who claims to triple your money within 24 hours. I strongly recommend you to stay away from them.
By the way they were named that because of famous cheater Carlos Ponzi.
What is a Bux site?
A Bux site is basically the same as PTC site – members are paid for clicking and viewing advertisements. The difference is that Bux sites usually pays around 0,01$ per click while classic PTC sites only around 0,001 – 0,05$ per click.
It follows that Bux sites is way more expensive for advertisers to promote their products, and there are very small number of advertisers who are ready to use Bux sites to promote their products (and why should they when they can get even ten times?).
So, Bux site can’t exists only as middleman between advertisers and visitor (members), because they wouldn’t be able to provide enough sponsored advertisements for their members to motivate them stay active. That’s why majority of sponsored advertisements served for clicking is their own.
So, the mine difference between classic PTC site and Bux site is that Bux site is middleman between visitors and advertisers and advertiser itself too. Can such form of PTC be productive and tenacious?
Let’s take a look at whole process from other side. To earn money as Affiliate you need to have a source of traffic and you have to be able to convert it into sales and/or signups (that can be don by choosing the appropriate product for the traffic you have). Probably you have heard a lot about importance of having a list of sales prospects (potential costumers) to be successful in affiliate marketing. And that’s right; especially when a new product comes out it is important that you have ability to inform thousands of potential buyers.
If you are owner of Bux site, that’s exactly what you have - a list of sales prospects. The difference is that you are paying your potential costumers for viewing your products.
Of course part of the Bux sites earnings still comes from their members (membership upgrades, referral sales etc.), but they have outer source of income and that’s the mine reason why they are not ponzi schemes.
So, how stable the Bux site will be depends on how good marketer the owner is, and how big capital reserve he haw (will after one unfortunate affiliate campaign he will bankrupt or not?).
So, my answer is Yes, Bux sites are not scam until they are paying and they even can become even extremely successful too (there are one great example for that – NeoBux. It’s online now for couple of years and paid out more than 10 millions of dollars already).
What is ponzi scheme masked as Bux site?
So, the ponzi scheme masked as Bux site looks exactly as regular Bux site, but it don`t have any outer income source. Money that’s paid out to it’s members comes only from membership upgrade, referral sales etc. It’s mathematically impossible to keep running business that way for long, because no one will invest if payouts will decrease and it’s impossible to increase payments if no one is investing. The line between Bux site and Ponzi scheme is extremely thin.
A lot of Bux sites become a ponzi schems after their owners fails to succeed in affiliate marketing and they have to find a way to get their members to invest more and at the same time how to pay out less, and these ways are usually fraudulent. (one of the best known examples is Bux.to. They sold fake referrals)
Conclusion and Advice
There is no way you can tell whether it’s a Bux site or ponzi scheme masked as Bux site, so all you can do is be careful. Most likely if you will join a Bux site that is ponzi site You will be able to still receive few payments before it stops paying or disappears.
My strategy is simple. Don’t invest too much or don`t in vest at all in new Bux sites and when you earn something invest it in highly trusted PTC sites.
1 komentāri:
Finally I got an informative post which thoroughly explains about BUX! I tried to clarify by reading a lot of material but htis one seems to be the best
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