What History Can Teach Us
In the previous article, The Ponzi Scheme was introduced, the first documented scam related to network marketing.
Ever since Charles Ponzi had his ill-conceived idea, other plans have come and gone. Many others followed Ponzi and many millions of other people lost fortunes to unsustainable business ideas and schemes.
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No matter how great the return, any business model incapable of sustaining massive growth will eventually collapse.
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Any business model depending on new investors to pay returns to current investors will eventually collapse.
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Any investment comes with risks.
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Smart investors understand the risks of investing.
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Smart investors do not invest in any business model they cannot understand or proof of sustainability that is not provable.
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Extraordinary claims of investment returns should be backed with extraordinary proof.
Anyone starting a business based on network marketing should keep all of these ideas in mind at all times.
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