studiotraffic.com - Pyramid Scheme?

[weevil]

(Didn't know which forum to post this to, any suggestions?)

My friend recently introduced me to this website, which offers advertisers a large installed base of viewers per their member base. Along with a few other bells and whistles, they offer to pay their members 1% daily of an "upgrade" fee the member deposits.

As I understand it, if someone joins, and deposits a maximum upgrade of $15k, he will earn $150/day, simply for viewing a series of website advertisements for half-an-hour. A member can have up to five accounts, and can therefore make $750/day, with an initial investment of $75k, and a daily time investment of 2 1/2 hours. At the end of a 12 month cycle, the upgrade is withdrawn and kept by Studio Traffic, and to continue being a member, you must upgrade your account again. But each account will pay for itself in 100 days.

The home page of the website lists a total member base of 260k, and a total fees paid of $10,210,580.00. This just seems like the world's largest pyramid scheme. The FAQ admits the risk involved in their method, that should the rate of membership increase drop to below the cost of paying current members their dues, then they in turn will have to cut back their payout structure.

My friend has been doing it for a month now with an upgrade of $15k, and has already recieved his first month's deposit of $4500. The person who referred him has been doing it for two years, and has made over $200k.

Discuss.

[jokerthief]

How does this company make money other than signing people up and what is the point of viewing the ads?

[weevil]

Every site they advertise pays Studio Traffic a listing fee, something like $800 a site. They also probably aggressively invest a large portion of the money.

[jokerthief]

I don't think you've given me enough info to make an educated recommendation. If you are going to invest $15,000 in anything then you should expect to look at the books of said investment. From what you've shared so far this operation is raising huge red flags. Before you give them any money you have to have a clear picture of why they need the money you are going to give them and why it makes them money. Also, how your investment will generate the money they promise you and a cut for them. If it's hazy, it's a scam.

[weevil]

[ QUOTE ]
I don't think you've given me enough info to make an educated recommendation. If you are going to invest $15,000 in anything then you should expect to look at the books of said investment. From what you've shared so far this operation is raising huge red flags. Before you give them any money you have to have a clear picture of why they need the money you are going to give them and why it makes them money. Also, how your investment will generate the money they promise you and a cut for them. If it's hazy, it's a scam.

[/ QUOTE ]

I'm not recommending it. I think it might be a scam (in the long term). But my friend is doing it, and has four other friends who have been doing it, and they're all getting paid as promised. I think it's legit at the moment, I'm just curious if others have had experience with this site or sites like it, and whether it is something worth doing.

[jokerthief]

Just know that investments that generate a 365% ROI ALWAYS involve a ton of risk and average people never find out about them. In fact most investments that can generate this type of return are illegal for common investors to participate in. One needs to have certified investor status which is 250,000 in income or 1 million in assets. This is dictated by the SEC because of the risk involved in these types of investments.

[MrTrik]

For the ten thousanth time: If it sounds too [censored] good to be true, IT IS.

[canis582]

Its not a pyramid scheme, its a ponzi scheme. Call the fbi.