Cash Plus Felon
The front page news breaking today in the Jamaica Observer is that the founder and president of Cash Plus is a convicted felon, who served some number of years in prison in the U.S.
Click here to see the article.
Apparently, he returned to Jamaica to start the business that is currently the source of so much controversy.
My own take on it is that the recent revelations are bound to be damaging, but the problem is that the business is apparently having a difficult time in providing the double digit monthly returns that it promises its "shareholders."
The story I have heard is that people have been promised up to 18% returns each month. Anyone who is a student of statistics knows that based on simple compound interest laws alone that such returns are unsustainable.
It's the reason why Amway, Ponzi schemes and the like MUST have losers, because if everyone won, there would not be enough people on the planet to keep it going.
In like manner, CashPlus must spawn losers, because at that rate of growth, it would gobble up all the cash in the world in only a few years (someone else can do the math.)
This says nothing against Carlos Hill's integrity. Instead, it's a law of the universe that 's bigger than any of us that just cannot be broken.
I fear the worst, and it would be a good move for him to declare that his investors should expect lower returns from this point on, to help cushion the blow they are bound to experience at this rate.
While returnees are welcome back here in Jamaica, as is their busines acumen, it remains to be seen whether or not this particular enterprise will stand the test of time. I am certain that his background must be giving his investors some pause for thought this morning, as they realize they are in business with an ex-con.
Labels: investment
posted by fwade @ 12/06/2007
3 Comments:
I can't speak for cashplus, but I can speak with experience about Amway and I'm afraid you've misunderstood the model. Unlike illegal pyramid schemes and ponzi schemes, Amway is *not* reliant on having new people join to make money. Indeed, you make no money at all by having folk join. It's quite possible to have nobody join and make as much money as you like, and just as possible to have 10000 people join and make zero.
Indeed, for the last half year in the United Kingdom, Amway has had a hold on all new registrations. Yet people are still buying and selling the products and making an income. If all Amway sponsoring stopped today, there is no theoretical reason that every single person currently in Amway could make as much money as they were willing to work for.
It's an unfortunate outcome of the success of Amway - sales approaching US$7 billion in 90+ countries and territories - and it's legal imprimatur - it underwent an extensive investigation by the FTC in the 1970s - that scammers try to make their scams look like Amway and then try to claim legitimacy. Unfortunately what has happened is the reverse - the reputation of the scammers has instead rubbed off on to Amway, causing misconceptions like yours here.
I just signed up for Amway and so far I have made money. Their products are the best in the world so check your facts. My family have been using their product for ages and we love them because they are good and the best we have ever used. Great products and great money are the reason I signed for Amway.
I too agree you must check your facts about AMWAY. I have been an IBO associate with Amway since 1982. This is certainly not a ponzi or illegal pyramid scheme as implied.
Through my association with Amway I have educated my children to the highest level, traveled to places where dreams are made. Built a home in Jamaica, now living in same.
The credibility and dream of Rich De-Vos and Jay van Andel will live on.
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