E-creator will make some people money before it folds, shattering many – classic Ponzi scheme

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Following some of the responses we received when discussing E-creator as a scam, we may need to go back to defining what pyramid schemes and Ponzi are.

Oh, and we may also need to touch on multi-level marketing and microworking, both of which can be used by legitimate companies, complicating matters.

That’s a lot, but if scammers take the time, so should we. Fraudsters often mix and match the above, coming up with more and more scams.

I think if we were all on the same page about the above, we would see E-creator face to face. We should admit that some will benefit, but that it won’t end well for many, hazvipere mushe.

Summary of what E-creator is

You can read how E-creator is structured Here. Here is a summary of how it works though:

• If you to deposit $15-100, get up to 4% in return (commission) every day after posting 10 fake reviews. They call these fake reviews “jobs”. With this deposit, you are considered a 1 VIP member.
• If you deposit $100-$500 and also recruit 5 other people to join as an active VIP 1 member, you will be upgraded to VIP 2. This upgrade comes with a 4.5% increase in commission.
• You must deposit over $500, up to a maximum of $2000 and have 5 VIP 2 Recruits to upgrade to VIP 3. Your commission rate increases up to 5%.
• And so on..
• They also say that if you recruit at least 50 people at any level, you qualify to be a manager which comes with a $400 bonus every month, on top of your commissions.
• Remember that you must maintain the minimum balance of your level to stay in the program. If you are a VIP 3 member, you must maintain at least $500 and your recruits must remain active in order for you to remain a VIP 3 member.
• E-creator says that both capital and profit can be withdrawn commission at any time and exit the program.

Ponzi schemes

Investors are promised high returns with little or no risk. The scheme works by using money from new investors to pay off old investors.

A classic example would be the Bitcoin super-traders that popped up a few years ago in Zimbabwe. They asked you invest your money with them and they would double it every month while you sat at home. According to them, there was virtually no risk that you could lose yours investment.

• An investment – ​​✅
• High (unrealistic) returns – ✅
• Little or no risk – ✅

And the E-maker?

E-creator is not a classic Ponzi scheme. E-creator is not saying: “Invest with us”. They’re saying, ‘Here’s your chance to work and earn high returns.’

However, you are definitely investing with them, they just don’t call the investment A investment. You have to deposit money with them in order to earn commissions. So think of the fee as a return on investment or interest and you will see that E-creator is a Ponzi.

• An investment (to deposit) – ✅❓
• High (unrealistic) returns – ✅
• Little or no risk – ✅

They have disguised the investment as some kind of deposit and introduced a service that you have to provide to make it look like it’s not a Ponzi scheme.

The 4%+ in return you receive every day comes from money deposited by new hires. Not for posting 10 fake reviews, which can hardly be considered work. However, E-creator is not a classic Ponzi scheme.

Pyramid schemes

Participants are promised money for recruiting new participants. The scheme works by paying the first participants with the money of the following participants.

Now for a pyramid scheme to work, there has to be something that the organization says it does – usually it sells a product, sometimes it’s a service. Without this service or product that is on salethere would be no pretext for recruiting participants.

Recruitment is the main differentiator for pyramid schemes. If you find that most of your income from a scheme comes from recruiting new members, then you are in a pyramid scheme.

You have to wonder how it is that most people make most of their income from recruiting new members rather than selling whatever the organization purports to sell.

It’s not really about the product/service, a lot of money is made by recruiting as many people as possible. For every member you recruit, you get a reward every week/month for a certain period. For every person you recruit, you also get a reward. And so on.

How does E-creator compare?

The more you recruit, the more you earn with E-creator. Your commission increases as you increase your investment and recruit more members.

Since E-creator promises a fixed commission (interest) rate each month, the amount you can earn depends on the amount you deposit (invest) with them.

To increase your deposit you need to recruit more members. So in that regard, the number of people you recruit determines how much you earn.

However, even at VIP level 5, you still won’t make the majority of your recruiting income, even when you get to 50 recruits and get $400 for that every month. This is even if we consider the increase in commissions from recruiting and retaining new members.

Most of your income still comes mainly from the interest on the deposit you have with them. So in the end, it doesn’t matter if we can call posting 10 fake reviews a day a service focus.

• Reward for Recruiting New Members – ✅
• Most of the proceeds from hiring – ❌
• No focus on selling products/services – 🤷🏾‍♂️✅

They mixed it up, so it’s not exactly a pyramid scheme. I would argue that E-creator is a Ponzi scheme with pyramid elements.

Multi-Level Marketing (MLM)

In a legitimate MLM business, distributors earn income from selling products or services to consumers. They may also earn commissions on their recruits’ sales, but most of their income comes from the sale of products or services.

For most people, it is difficult to differentiate pyramid schemes from MLM schemes. The main differentiator, as we have discussed above, is what is the main driver of income. If it is recruiting then it is a pyramid scheme, if it is selling products/services then it could be an MLM.

This is where the likes of Avon, Forever Living, Angel, and the like fall in. You get rewards for recruiting new members, however, even if you don’t recruit a single person you could still earn a lot if you can push the product. You’d better recruit though.

How about E-creator?

If you don’t recruit anyone for E-creator, the best you can do is deposit $100 and earn $120 commission per month. Not anymore.

It’s still an unrealistic return for posting 10 fake reviews, but that’s the roof if you don’t recruit anyone.

You can see that to make more money with E-creator, you don’t have to do more work. In fact, it is not possible to work more than any other person. Each is limited to 10 reviews per day.

What determines your income is the number of recruits and most importantly the money invested (deposited) with E-creator. That’s not how MLM templates work.

• Focus on the sale of products / services – ❌
• Big income from sales – ❌
• Focus on recruiting new members – ✅

E-creator is not an MLM model.

Microwork

Microworking is a type of work that is typically done online and is characterized by small tasks and short duration. It is used by businesses to complete tasks that take time or require a large number of workers.

Micro jobs are small, easy tasks that can be completed in a short amount of time and generally don’t pay much.

You may be asked to transcribe audio/video, write product descriptions, enter data, answer surveys, etc.

Could we call 10 fake E-creator reviews a day microwork?

• Small and easy tasks – ✅
• It requires a large number of workers – 🤷🏾‍♂️ (How many fake reviews do online sellers really need?)
• Time consuming – 🤷🏾‍♂️ (If online sellers used bots, it wouldn’t take long to post fake reviews on all of their products)

So called E-creator employers are the online sellers who need fake positive reviews about their products. Putting the ethics of this aside, they really might need a large number of people posting reviews.

So, I think we can say that E-creator has a microwork element.

The reality of Ponzi/Pyramids

I will stick to my classification of the E-creator as a Ponzi scheme with pyramid elements and microwork. I’m sure you will agree with this classification.

Ponzi schemes only survive until they are no longer able to recruit more members. However, the reality is that it can take a few years for a Ponzi to start fighting to recruit new members.

This means that those who join early can really make a killing before everything falls apart. When the masses unite, the early adopters would build homes with the proceeds of the Ponzi schemes. That’s not to mention how lucrative all of this is for the founders themselves.

I know people in my circles who made thousands from Bitcoin super traders before the programs went belly up. Yes, when the schemes failed, any investments they had still there were lost, but they had withdrawn far more than they had invested when it happened.

Many people know this. They can spot a Ponzi/Pyramid miles away, but will still band together in hopes of being early enough to make a profit before it all comes crashing down.

So some see as so-and-so who they know has done a murder and how they themselves are making a small profit and end up confused as to what the organization is really about. These are the people who put all their proceeds back into the scheme and eventually lose everything.

Find out what E-creator is

So, to claim that you are making money on E-creator and therefore it is not a Ponzi scheme is silly. You’ll make money until you don’t, that’s how Ponzis work. I guess that’s how all business ventures work, so go ahead.

However, with Ponzi as an E-creator you can rest assured that your profit today rests on the shoulders of the people who join the scheme, many of whom will eventually lose everything. If you feel comfortable then do your own thing.

The time will come when E-creator will reach out to everyone who would be interested in such a program, and the whole house of cards will collapse that day.

There would be no new morons depositing money to be used to pay 4% commissions and the E-creator would start defaulting on withdrawals and within a few months, or even weeks, they would be nowhere to be seen.

Read also:

E-creator: This criminal enterprise is running a scam, stay away

Zimbabwe wants to bring 1 million traders online and raise $5 billion, hmmm

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