www.nigeria-mmm.net How MMM makes 30percent to pay participants
How MMM makes 30percent to pay participants is a post to clarify prospective MMM new members on How MMM makes the 30% is pays its participants.
How does MMM make 30% to pay participants?
This is the question every member/participant try to get answer to. Isn’t this robbing Peter to pay Paul?
That is what a lot of people who are against MMM are saying, including You! If not so, where is the 30% coming from? they ask.
I have news for you, if MMM’s 30% is “robbing Peter to pay Paul” then you need to stop putting your money in the bank because the 1% to 2% interest from banks is from other peoples’ deposits which according to you is “robbing Peter to pay Paul”.
Do you think the bank can pay the tiniest interest if other people’s money is not involved?
What most people do not understand is that when you deposit your money in the bank, they immediately use your money in one or more of the following ways:
- Allow another depositor to withdraw when they request to do so.
- Give out loans to those seeking loans from the bank
- Pay workers’ salary including bank managers, clerks, marketers, cashiers, tellers, cleaners, security guards etc.
- Buy equipments needed for smooth operations like generator, computer systems, communication gadgets etc.
- Sponsor the expensive lifestyles of bank executives including the next trip to America or Dubai.
- Other running costs of the bank
Just imagine! Did you know this? See what our deposits are used to accomplish! Now, for the privilege of using our deposits in the above ways, the bank rewards us with 1% or 2% interest (up to 6% if fixed deposit) provided the money stays with them for over a month. Imagine! Just 2% after all that!
Consider this; you deposit 100k with your bank and after 2 weeks you return to withdraw the entire 100k. Question is do you think it is your actual 100k they gave you? NO! Your actual deposit has already been used in one or more of the ways mentioned above and the 100k they give you is because of fresh deposits the bank recently received.
If you look closely, you will realize that banks can pay more interest than they give, but that means sacrificing the expensive lifestyle of the bank executives. Why will they cancel that next trip to Dubai because of you? Think.
However, in MMM the ONLY thing your money is used for is paying another participant due for payment directly, no middleman. There are no salaries to pay, no running costs, nobody collecting loans, no bank executive’s expensive lifestyle to support.
So you can see that MMM can conveniently offer 30% rewards for your willing and generous donations to fellow participants. Therefore, whether 2% or 30% interest it all comes from the same source: other people’s money (OPM).
Now let’s talk about insurance companies. I believe they are the epitome of the so called “robbing Peter to pay Paul” allegation. How does insurance work? Suppose you insure your property against fire for 2 million naira and they charge you a monthly premium of 20k.
You faithfully pay your monthly premiums without fail, and then on the 6th month the unexpected happens, fire guts your property! After the usual investigation, the insurance company is satisfied you have a genuine claim, they pay you 2 million naira.
The question is where did the 2million naira come from? Your personal payment is only 120k, so how come 2million naira? Well, the 2 million is from other premium payments to the insurance company by other participants.
Imagine what will happen if everyone on insurance with a particular company all have genuine claims at the same time? They cannot cope! In any case, the payment is from other people’s premium payment, which according to some (maybe you) is “robbing Peter to pay Paul”.
If however you are still convinced the whole thing is “robbing Peter to pay Paul” I will suggest you withdraw all your money from the bank, cancel all your insurance (including your National Health Insurance Scheme) and keep your money under your bed, in your pillow/pillowcase or dig a hole in your backyard to keep your money. That is the only way you won’t participate in this “robbing Peter to pay Paul” business. But your money cannot grow that way whether 2% or 30%.
By Prince Umahi