Ponzi Scheme or not?

4th July 2022, Monday

There are many more companies including Amazon, uber, daraz, who are currently the best platforms in digital marketing. But you would be surprised to know that a company like Amazon could not bring any profit to their company for 12 years after starting their journey i.e. their profit from 2006 to 2018 is 0. Uber is in the same position. But currently Amazon's marketcap is 1.1 trillion which is the highest of any e-commerce. Maybe you are now wondering, how could a company that has not made any profit in the last 12 years be able to bring such success so fast? Basically Amazon has used such a business strategy is a long-term process. E-commerce companies like Uber have followed the same path. So how a company that has not made a profit year after year turns into a billion dollar company may seem a mystery to you. And it may also come to mind that how do these companies continue to be funded for so long?

Basically these companies go through a serial process. These multi-billionaire companies initially want to increase their brand value. And they offer a variety of attractive price discounts from their company to increase their brand value.

Suppose you want to buy a bike. If you want to buy the bike of your choice from such a market, you have to spend $ 2000. There Amazon company offered you a 50% -60% discount. In that case it will cost you only $ 800 to buy a bike worth $ 2000. Finding the bike of your choice at such a low price, you ordered very quickly. Amazon delivered the bike of your choice to your home in four to five days. After checking and sorting everything out, I realized that the bike is very real and gives a very good service. In that case you will quickly tell five to ten more of your friends about your bike. Your friends saw your bike and started ordering. That's how the company's broadcasts continued in the form of pyramids.

In that case the way the company's funding comes in, suppose you are the first buyer, your friend is the second buyer, your friend's friend is the third buyer. After you got the bike your second friend and third friend seemed to order the bike respectively. In that case Amazon will buy the bike for your second friend using the money your third friend paid for the bike. In that case your third friend will have to wait until the fourth one orders the bike. Because the third person's bike will be made with the money of the fourth person. Thus the popularity of a brand value-increasing company continues in the form of a pyramid.

As brand value increases, the company continues to sink into a sea of ​​large amounts of debt. If the company is unable to repay the loan at a time when the company is out of popularity due to various offers to the public, then the company will run away with the money of the last ones who will order for bikes or various products. And this is the ponzi scheme or pyramid scheme.

E-Vally, a reputed e-commerce company in our country, follows this strategy and increases the reputation of their organization for about two to three years. When the company reached a stable stage, they looted millions of dollars and fled the country. Initially, E-Vally started the company by investing 65 crore taka or about 6.5 million dollars and later the amount of money looted from them stood at 60.9 million USD!

But Amazon and Uber have made their organization a popular e-commerce site in the world by paying off their debts. If we calculate the amount of profit that is currently coming from Amazon every month, it can be seen that the profit that has not come to their organization for 12 years was very important to them.

So if you are an entrepreneur, then you must think big. And whenever your thoughts are big, you have to have great patience. Because through endurance alone, companies like Amazon and Uber have become billionaire companies in the world today. After a lot of hard work, when your company's brand value increases, your mind will want to scam the money but you will never do that, because if you finish at the beginning, it will never start.

That's it for today. Hope you like it :)