E-creator Set to Enrich Some Before it Folds, Scaming Many -Classic Ponzi Scheme
Based on some of the responses received when discussing E-creator as a potential scam, it may be necessary to revisit the definitions of pyramid and Ponzi schemes. Additionally, it may be helpful to touch on multi-level marketing and microwork, both of which can be utilized by legitimate businesses, further complicating the issue.
The Importance of Understanding Scams
Scammers often mix and match elements of pyramid and Ponzi schemes, multi-level marketing, and microwork to create new and novel scams. It is important to take the time to understand these concepts in order to better identify potential scams. If everyone were on the same page about these concepts, there would likely be more agreement about E-creator. It would have to be conceded that while some may benefit from E-creator, it is not likely to end well for many.
Recap of E-creator’s Structure
E-creator is structured in a way that allows members to deposit money and earn commissions by posting fake reviews, referred to as “jobs.” Members who deposit between $15 and $100 are considered VIP 1 members and can earn up to 4% commission each day after posting 10 fake reviews. Members who deposit between $100 and $500 and recruit 5 other active VIP 1 members are upgraded to VIP 2 and receive a bump in commission to 4.5%. Members who deposit over $500 (up to a maximum of $2000) and have 5 VIP 2 recruits are upgraded to VIP 3 and receive a commission rate of 5%. The program also offers a manager position for members who recruit at least 50 people at any level, which comes with a $400 monthly bonus on top of commissions. To remain in the program, members must maintain their level’s minimum balance and their recruits must remain active.
Characteristics of Ponzi Schemes
Ponzi schemes typically promise investors high returns with little or no risk. The scheme operates by using money from new investors to pay off old investors. A classic example would be the Bitcoin super-traders that emerged in Zimbabwe a few years ago. They promised to double investors’ money every month with virtually no risk of losing the investment.
Identifying a Ponzi Scheme
To identify a potential Ponzi scheme, look for the following characteristics:
- An investment opportunity
- High (often unrealistic) returns
- Little to no risk
E-creator: A Closer Look
E-creator is a company that has been the subject of much debate and speculation. Some people have accused it of being a Ponzi scheme, while others argue that it is not. In this article, we will take a closer look at E-creator and try to determine what it really is.
What is E-creator?
E-creator is a company that offers its members the opportunity to earn high returns by working with them. However, unlike a classic Ponzi scheme, E-creator does not explicitly ask its members to invest with them. Instead, they frame their offer as a chance to work and earn high returns.
Despite this framing, members are still required to deposit money with E-creator in order to earn commissions. This deposit can be thought of as an investment, and the commission earned can be seen as a return on that investment. In this sense, the E-creator does share some similarities with a Ponzi scheme.
Is E-creator a Ponzi Scheme?
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the investments of more recent investors. The scheme leads investors to believe that profits are coming from legitimate business activities when in fact they are simply being paid with the money of new investors.
E-creator does have some characteristics of a Ponzi scheme. Members are required to make an investment (deposit) with the company in order to earn commissions (returns). The company also promises high (unrealistic) returns with little to no risk.
However, E-creator tries to mask its investment as a deposit and introduces a service that members must provide in order to make it seem like it is not a Ponzi scheme. The 4%+ return that members receive every day comes from the money deposited by new recruits, not from posting 10 fake reviews, which can hardly be considered work.
Despite these similarities, E-creator is not a classic Ponzi scheme. It has some elements of a Ponzi scheme but also differs in some key ways.
Is E-creator a Pyramid Scheme?
A pyramid scheme is an illegal investment scam where participants are promised payment for recruiting new participants into the scheme. The scheme works by paying out early participants with money from later participants.
In order for a pyramid scheme to work, there needs to be something that the organization claims to do – usually selling some product or providing some service. Without this product or service, there would be no guise under which to recruit new participants.
The main differentiator for pyramid schemes is recruitment. If most of your income from a scheme comes from recruiting new members rather than from selling products or services, then you are likely involved in a pyramid scheme.
With E-creator, the more members you recruit, the more you earn. Your commission increases as you increase your investment and recruit more members. Since E-creator promises a fixed commission rate every month, the amount you can earn is dependent on the amount you invest with them.
To increase your investment, you need to recruit more members. In this regard, the number of people you recruit determines how much you earn. However, even at VIP level 5, you still won’t be making most of your income from recruitments.
The bulk of your income still comes mostly from the interest on the deposit you placed with E-creator. So in the end, it doesn’t matter if we consider posting 10 fake reviews a day as a focus on service.
E-creator does reward members for recruiting new members but the bulk of their income does not come from recruitment. There is also no clear focus on selling products or services. As such, E-creator is not exactly a pyramid scheme but it does have some elements of one.
Is E-creator an MLM?
Multi-level marketing (MLM) is a legitimate business model where distributors earn income from selling products or services to consumers. They may also earn commissions on the sales of their recruits but the majority of their income comes from selling products or services.
It can be difficult for most people to differentiate between pyramid schemes and MLMs. The main differentiator is what drives the majority of income. If it’s recruitment then it’s likely a pyramid scheme; if it’s the sale of products or services then it could be an MLM.
Companies like Avon and Forever Living fall into this category. You do get rewards for recruiting new members but even if you don’t recruit anyone you can still earn a lot if you manage to sell their products.
In conclusion, E-creator shares some characteristics with Ponzi schemes and pyramid schemes but also differs in some key ways. It could be described as a Ponzi scheme with pyramid elements but it is not exactly either one.