What is MMM for Africa? Is MMM Ponzi scheme? Does it have an effect on the people? There are thousands of people in Africa who took their money and placed into the scheme. Nevertheless, the owner of the MMM once had at least half of all money of Russian Federation.
MMM swot analysis
He tried to provide Russian people a dream, but he ended up in prison. A few years later after prison, Sergey Mavrodi decided to create a new group under the name of MMM Global! For the last year, this creation is extremely popular in Africa. Despite dark past, MMM clearly has its continuation.
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Is MMM a Ponzi Scheme?
MMM swot analysis
Ponzi Scheme is named after the USA fraud master Charles Ponzi. He created a method that helped thousands of Americans to lose their money in no time. It`s a classical pyramid where a leader of the pyramid of organization gives revenues from the new capital to investors. This capital is provided to the operator by the new depositors. New Investors of the pyramid come to play with much higher prices and propositions. They believe in easy money. The fact is they can only get their revenues from the new depositors, and that`s all. The amount of money from new depositors should cover the expected revenues of old investors. Therefore, people who believe in quick and easy money – can only get it if they are the close to the top of the pyramid. Nevertheless, they will surely lose all their money if they are at the base of the pyramid.
Sergey Mavrodi is considered to be a father of the biggest Ponzi Scheme in Russia. Some people might say that it was the biggest Ponzi scheme on the planet. He once had at least one-third of all money of Russian Federation. At least 50 million people were investors of MMM in Russia in the 90s. According to the Russian officials, the total lose for people is around $12 billion. Nevertheless, even Mavrodi was not able to count the whole sum of money he got from various investors. The MMM company once stopped to count money in the old way, and they started a new type of calculation, like roomfuls (one room full of money in cash). Even Mavrodi confesses that his team was stealing the money from that roomfuls and even after that, it did not stop refilling. Millions of Russian people lost their money due to fraud actions of Sergey Mavrodi. A few years ago, he created MMM global which is now operated in Africa.
How MMM works?
MMM swot analysis
Sergey Mavrodi did not change his principles of work in Africa. The new scheme proposed by the old leader is the old good Ponzi scheme. Investors get their money only with investments from new participants. They will stop to get their money when the amount of money from participants is not enough to cover the whole debt. Nevertheless, like all Ponzi schemes, MMM will continue to say to his investors that everything is good and they just need to get more money!
What is SWOT analysis?
MMM swot analysis
SWOT analysis is a simple matrix which stands for four elements:
- Strengths: business characteristics that give advantages to a project compare to other projects.
- Weaknesses: business characteristics that give disadvantages to a project compare to other projects.
- Opportunities: expected business characteristics that will give new advantages to a project compare to other projects.
- Threats: expected business characteristics that will give new disadvantages to a project compare to other projects.
MMM SWOT analysis
MMM swot analysis
Strengths:
- MMM can be treated as a good mechanism for financial independence.
- MMM stands for equal opportunities for everyone (If you are lucky to get close to the top of pyramid – you are safe)
- MMM can be treated as an education program for financial independence.
- MMM does not discriminate rich or poor. All who give money to the pyramid are treated as equals.
- You can get quick money here, but it only works, when you are close to the top of the pyramid.
- MMM creates no barriers between people because of their financial status.
Weaknesses:
- The ideology of MMM is not followed by hundred percent of members. If you have a desire to create more money for MMM, then you need to help to support the constant flow of money into the system.
- There is no physical office for the platform which means no trust for the company.
- People capitalize on the negative background of MMM.
- People who try to get rich in the short terms – try to get money out of the pyramid as early as its possible.
- If MMM does not get new participants or new money flows into the system – it`s impossible to pay the debts for the old members of the system. Therefore, old members should also create some constant money investments to the system.
Opportunity:
- People can change their financial status with MMM. The closer you are to the pyramid top, the greater the chances that you can get the biggest piece of the pie.
- Freedom of transaction. People can transfer the inner currency of the pyramid freely.
- No extra charges for transferring the money.
- MMM has a system and a well-organized data base.
- According to the dreams of Mavrodi. MMM can become a collapse of the old banking system.
Threat:
- The government can become a major threat for MMM when it starts to show clear signs that it`s the Ponzi scheme.
- Financial institution of the country may seize any running operation of the pyramid.
- MMM starts treating like Ponzi Scheme and people connected to MMM will be arrested.
- MMM ends paying the debts, and thousands of people will lose their money.
- MMM creators and bosses might leave the country, and middle agents of the pyramid will stay to face trial.
MMM SWOT analysis conclusion
MMM is considered to be one of the biggest Ponzi Scheme that the world has ever known. It`s spread all across continents and has more than 120 branches in many countries of the world. In Africa countries, it hits the records right now as the websites of MMM are considered to be more popular than Facebook. Nevertheless, like all Ponzi schemes, MMM Ponzi Scheme has just started greatly. It continues to provide more money to the old investors as it has not lost its touch yet. Still, some countries report about MMM starting collapsing. There is news that MMM scheme in Zimbabwe has been crashed and thousands of people lost their money.
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What should expect people in Africa from MMM? It will work until it gets new members and new sums of money into the system. When the amount of money of getting to the system stops to cover the debts to all members – MMM will collapse.
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