What is the difference between a pyramid scheme and a legitimate business model

It is crucial to understand the difference between a pyramid scheme and a legitimate business model. Pyramid schemes are fraudulent business practices in which participants are supposed to generate high returns by recruiting new members. The returns for existing participants are financed by the contributions of new members, and the system inevitably collapses when an insufficient number of new members can be recruited.

Below are some factors that demonstrate that our business model at ProfitWallet is not a pyramid scheme:

Revenue Sources:

ProfitWallet generates revenue not through recruiting new members but through daily returns from investments, affiliate programs, and fees. Even if no new deposits are made, daily returns from investments would continue to be generated. Only the structure bonus (bonus system 2) would be discontinued, as the corresponding basis is missing. However, the affiliate bonus (bonus 1) would continue to be paid out regularly.

Compensation System:

As a company, we do not pay closing commissions to obtain new customers or deposits. We only involve the referrer proportionally in the daily returns based on the returns on the credit balances. In the case of partial payouts, the referrer and the company receive reduced payments. In the case of a full payout, the referrer and the company no longer receive any affiliate payments.

Sustainability:

Our business model is based on sustainable and scalable investments, without being dependent on a constantly growing number of new participants. The business model is supported by the investments and the resulting returns, providing the pillar for success.

Transparency:

Transparency is essential for us to gain the trust of customers, partners, and investors. However, we are aware that we must withhold certain information to maintain our competitiveness. To ensure transparency, we regularly communicate our goals and upcoming milestones. Furthermore, we regularly share progress reports and updates about the company and its products or services without revealing confidential information. In addition, all users receive a personal financial report that provides annual transparency about returns and costs.

Reputation Assessment:

Independent experts and satisfied users who have accompanied and advised us for over a year repeatedly confirm the legitimacy and viability of our business model to our users and ourselves.

Realistic Expectations:

As a company, we do not make unrealistic promises regarding high returns. Instead, we share real returns with our users every day. We bill every day and credit the user with 0 and 0.6%, which is based on the actual business success. 0% is just as possible as 0.6% in a bull market with overheated market conditions. These high % only occur on a few days in the phases of an overheated market (bull run) and are not permanent results that can be expected.