Red Flags

Renee,

I like welcoming lurkers who come out and participate. For one thing, it probably indicates that you have read the term "Red Flags" on this forum on more than one occasion.

> 1) can anyone explain to me what is meant by "cycling"?

From my recent readings online that even mention "cycling" it usually has to do with building layers of a pyramid in Ponzi schemes. Some are operating "Gifting Circles" in which each participant comes in with "buy-in" money. As the bottom layer of the pyramid is filled, the person at the top gets their payback from the "Circle".

There may be 5 to 8 or more layers required to fill the cycle. So "cycling" represents the process in filling the number of units in the circle for the new member to receive their payback.

The "circle" is used to disguise the pyramid, as everyone becomes a promoter, with the newest victim being added to the next position in the circle. But, in reality it is a pyramid, where no payout is reached until the bottom layer is filled.

So each new victim become the top of the next pyramid.

As with any Ponzi or pyramid scheme, those below the top are the losers when the pyramid collapses. As each new member joins, "X" more are required to generate the payback. In a relatively short period of thime, the number of new prospects needed to complete a cycle become more and more difficult to achieve. The growth of a new operation can be explosive, but will end in the same result. Lots of joiners added at the bottom layers who can never get their payout.

This type of quick, easy payback has been used to lure many unknowing "investors" who see it as a means to getting out of financial trouble. Many are desperate to get ahead or get out of a hole. Most cannot afford to lose the amount they "invested", and in every case the majority will lose their money.

If this is the type of operation you are looking at, it is illegal. If not, then I have no idea what they mean by cycling.

> 2) does anyone here on the board have any experience with, or knowledge
> of, either of the above mentioned programs?

The rare occasion that I read about one of these two, it didn't look like a viable business. I didn't look deep enough to see if it was a Ponzi, but definitely caused me to see Red Flags.

Mel. White, The Roadie, and others here may know a lot more. Don't rush in, and I'm sure you will be rewarded with more responses.

> thanks again. i have been lurking alot on this board in order to learn
> from the knowledge of professionals.
> renee

You're quite welcome. Please come back and join-in more often.