Money Cycler - how money cyclers works?
Those who invest in online knows about the money making business called money cyclers or money doublers. This is one type of investment which will give the investor the opportunity to earn more money in a short time.
So those who are not aware of these kinds of programs, may have a question how money cyclers work? There are few things which comes in to the scenario. Those are:
> ROI: This is the amount that you will get for your investment. There are different plans like 160% ROI, 200% ROI, 250% ROI or 300% ROI. It depends on admins choice and also the strategy of the admin of a site to keep the site alive for a long time.
> Admin fees: The admin takes a percentage on every purchase of positions. The admin can set a fixed amount or fix a percentage on every purchase.
> Payment Processor charge: Since all payments are made through a payment processor so there is a charge for receiveing money on payment processor. It also gets in to the account.
> Referral comission: Cyclers also offer referral comission. Like 5% of investment who joins under you. The admin won't give it from his/her own pocket. So it also includes in to the investment amount.
> Hidden costs: These costs are like expenses which are necessary. Like hosting fees, updating server etc. These costs are usually are not included in the plan. But some may take it into account also.
So now you can see where the money goes in a cycler program. And can have an idea how it will work and how many positions need to be purchased before you can make profit. If it is still vague then this example may make the whole thing clear:
Suppose there is a new cycler. And now it is offering a $5 line which has 200% ROI and also has a referral comission of 5%. So what does it takes to cycle one position? (What can be the hidden costs?)
Well is one thing visible to you that the ROI is 200%. So you know that to get your position cycled another member need to invest $5 on that position and after that you will get cycled. But there are additional hidden costs. So from my points above you can get an idea:
> ROI: 200%
> Admin fees: 15%
> Payment Processor fees: 2%
> Referral comission: 5%
The above things other than ROI are hypothetical to use this as an example. So as you see there are additional fees on the process which in total makes 222% actually. So what it means. If one position after you gets cycled then you are not getting the ROI for that position. As you can see the actually cycler requires to generate 222% so it actually takes 2.22 positions to be sold before one gets cycled. In other words to get 100 positions cycled there needs to be 222 positions to be purchased. I hope now everything is clear how a cycler works.
Now some bad things about cyclers:
Cyclers only generate money through members investment. So you also need to know the members can be the ultimate losers on a cycler. The only one who gains for sure is the admin. Just think the cycler does not generate any money itself. All money comes from members investment. And the admin takes a portion of it and pays the other members. So if one keeps reinvesting and withdrawing then the money is getting out of the scenario. And ultimately the members will face loss.
How to avoid facing loss on cyclers?
Well from above negative information it does not mean one can not make profit from cyclers. But to make a profit you need to invest early on the lines and make profit from it. Then you can invest again and play safe so you don't face loss. If you earn then it is good and if not then there no loss from your pocket.
I hope you find my post helpful and finally good luck if you invest in cyclers.
