Pyramid schemes have been around since the days of the Pharoh’s. Don’t believe me? Look it up! 😉
The lower mainland is experiencing a surge in a phenomenon called Gifting Clubs or Paying it Forward Groups.
They’ve been called other things in the past as well, Treasure Traders, or Women Empowering Women.
How Does a Gifting Circle Work? (Simplified)
The premise is simple. You recruit a bunch of friends & family to gift $5,000 each into a pool.
After you get 14 people, who have gifted you then walk away with their $40k.
Sounds like stealing? Well, it kinda is!
Here’s a diagram that shows what a gifting club structure is
Some new vocabulary:
Top of the Pyramid – Captain
Your 2nd tier – Co-Pilot
Your 3rd tier – Crew
Bottom Tier – Suckers …I mean crew.
So you, the captain, get two people under you to recruit more people who want to gift.
They all give away $5,000 each.
When your bottom tier is full of people who want to gift, then you get your $40k.
The people at the bottom lose their $5k until they recruit enough people to be their “captain.”
So if you do the math, there are 15 people in this pyramid.
Each pay $5,000 each
15 (people) x $5000 (Each)= $75,000
So if you walk away with $40,000 where does the other $35,000 go?
Well if someone recruited you, then it goes to that person and their team. Yup if you drafted your friends to gift $5000 hard earned dollars then you just gave them a lot of work to recruit a bunch more.
Can You Get Your Money Back from a Gifting Club?
They call “eke out” a way to get your money out.
Supposedly you can withdraw your money at any time.
Consider this; their system has no guarantees, product, service, contract, or treasurer.
If you decide to try this please understand that there are no guarantees.
Summary Of Gifting Clubs
If you want to do it you’ve been warned…I’ve attended two meetings to see what it was.
I felt uncomfortable but your experience might be different.
In the meantime here’s a couple of links to check out on gifting circles. See under 8 Ball method