PTC sites, The Dreaded "Ponzi" Effect

On my other lenses, I focused on showing you what these sites were, how they worked and how they made a profit.

But I must reckon I skipped the fact or, to put it in a better way, possibility that these sites would actually lose money.

How? Well, I basically pointed out 2 things, and let me go over them a bit;

However, there's a possibility that a certain site has less deserters than they need to keep paying. And this is called the "Ponzi Effect"

Ponzi schemes are known for taking in less money than they give out. As an example, they work as a pyramid, with those who acted first making money, and those who were last losing it.

Basically, if this happens, the site starts showing a "lag" in payments. What that means is, it will pay you, but as it isn't making a profit, it will take some time to do so. Specially if you requested a large payment.

Bux.to is one of the best known PTC sites out there. In fact, go and search Google for "paid to click", and you'll find bux.to on the 3rd place as of today, 15/06/08 ;)

A few days ago it was celebrating it's 1st year online, and it constantly posts "proof of payment", from people earning from 500 to 1000 bucks average. Who wouldn't want to be one of those guys?

I'll tell you who: me. "Why? Are you a madman?" No, I'm no madman. Simply put, with Bux.to, my win is somebody else's loss, due to the ponzi effect.

As people are constantly requesting more than what Bux.to actually earns, they can't pay out members immediately. So, what do they do? Well, if you ask me, I'd say they pay "big" members so that "small" members are motivated to keep clicking.

But they don't pay those "small" members, because they can't. Simple as that.