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These are typically called "matrix"
schemes and you often see them advertised
on eBay or virtually anywhere else the promoters
can find somewhere to post their links.
Matrix Schemes: there's no such thing
as a free lunch..
But how can you get a £200 phone for
£25? Surely if the matrix scheme promoters
gave you a phone for that price, they'd
lose £175? Well, in order to get the phone,
you somehow have to refer a number of other
people to sign up for the same scheme. To
get a £200 phone, you would typically need
to sign up eight more people to put in £25,
and then in order for them to get a phone,
they'd need to sign up eight more people
each, which is an additional people. At
the next level, it's an additional 512 people,
then around 4,000.. 32,000.. 262,000.. 2
million, 17 million until eventually everyone
in the UK is signed up to the scheme.
In it's simplest form, a system where
you have to keep recruiting larger and larger
numbers of people is called a "pyramid
scheme" and these are illegal. Matrix
schemes don't quite work in the same way,
and are often not illegal, but the
principle is the same - to get a £200 phone
for £25, eight more people have to be recruited
into the scheme.
On mobile phone matrix schemes, the approach
is quite simple. You sign onto a list, and
the further up the list you are, the earlier
you will get your phone. However, if the
list doesn't fill up you won't get
your phone, nor will you get your money
back. In effect what happens is that the
cash you put into the scheme is a gamble
and the odds are stacked against you.
Sure, everybody involved in these schemes
knows someone who has gotten their phone,
MP3 player or whatever, and many people
do. However, the only way to win this particular
gamble is to get in early on a popular matrix
list, and rely on the new recruits to pay
for item.
There's no such thing as a free lunch
- and on this, you can be sure that there's
a good chance that any money you put into
the matrix scheme will pay for someone else
to have a phone, and you'll get nothing.
The UK government is seeking to classify
many of these mobile phone matrix schemes
as gambling and regulating them as such.
This will mean that most schemes will become
illegal.
Matrix Schemes: the house always wins
As in Las Vegas, the house always wins.
These matrix schemes are not run for fun
- they're run to make their promoters money.
Not only will the promoters take a cut of
all the money coming in.. when eventually
the matrix collapses because not enough
people sign up, they get to keep the lot..
and we do mean a lot.
So.. you might be tempted to put up £25
to sign up for these expensive consumer
goods. But remember, the people getting
the best deal out of it are the people who
are running the matrix.
At shopforphones we will
never endorse, recommend or link to any
mobile phone matrix sites as we believe
that they are unethical and do not represent
a good deal for the consumer.
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