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1-16-2009 @ 9:07AM
YouPayorWePlay.com?...might want to fix that link
1-16-2009 @ 9:32AM
Please read http://en.wikipedia.org/wiki/Ponzi_schemeThis business model shares many of the same ideas.1) Promoting higher payouts than your initial investment2) "Promoters also try to minimize withdrawals by offering new plans to investors". They are using a credit system here, requiring you achieve a certain number of credits before getting paid.
1-16-2009 @ 10:04AM
I was thinking the same thing. Theres going to be a lot of Bernie Madoff wannabes after hearing the 50billion dollars a few times on the news.These guys can take their money grubbing paws elsewhere imo. This service is a cheap trick aimed at compulsive gamblers and clueless wow players. I'm ashamed that WoWinsider even gave them any promotion at all.On second though, I'm sure WoWinsider got paid for making this article judging by the overflow of advertisements here.
1-16-2009 @ 10:34AM
It's liek madoff all over agaiN!
1-16-2009 @ 10:38AM
Please don't be dumb enough to buy into this. First of all, the ones who are more likely to have server problems when they play are already being charged a higher amount, and that is per character not per account. Aside from tuesday morning maintenance and the over load we had when WoTLK first came out, there has been little if none server downtime. This is just a total scam to take advantage of wow players who have no idea what they're investing in. Read the fine print people...
1-16-2009 @ 11:23AM
This isn't ponzi in any way. It is a bad investment in the same way that all insurance is losing math just like gambling is losing math. Their only income is your money. They set rates based on a formula where the average person gets less than they pay in. otherwise there would be no profit for them. Thats what all insurance IS. The reason medical/life/house insurance is valuable is that in a catastrophic event, you can get a very large payout at a time when you couldn't otherwise handle the hit. The reason that wow insurance is not valuable is that getting 10 bucks in a non emergency isn't worth paying insurance for.
1-16-2009 @ 11:26AM
The more i analyze it, the more i realize that this is straight up gambling. Always a bad investment.
1-16-2009 @ 12:03PM
That and WoW time is not a tangible item that needs to be replaced or fixed. You're not really out anything if you can't login for a bit. And the times that its excessive, Blizzard reimburses a portion of your subscription.
1-16-2009 @ 12:45PM
Sounds like a Ponzi to me. They really should talk to a criminal attorney before they go live.
1-16-2009 @ 1:40PM
Anyone who says this is a Ponzi scheme obviously doesn't know how a Ponzi scheme works. This is INSURANCE. Nothing more, nothing less.A Ponzi scheme pays out to the early investors with the investments of later investors. They then need to find more investors to pay out the secondary investors. Eventually, there are no more investors and the money is gone.This plan is plain and simple insurance. They, like any other insurance company have a formula that will most likely make them money. You have to realize that. Insurance companies aren't in the business of losing money. The problem inherent in this insurance is that there isn't much to be lost if the servers are down. If you can't play, qq more. Whereas with car or house insurance, there's a lot to be lost if something catastrophic happens. You pay your car insurance every month to insure that if you do get in a huge accident you don't have to have reserves to pay everyone involved. If Warcraft is down, what happens? You don't have to pay anyone off, you just lose play time. Would it be nice to be compensated for it? Maybe, but I just don't see this being a popular service with the limited amount it could pay out. If you pay $1000 for car insurance and you wreck your car and two others, the insurance company could pay out $100,000, a 100x multiple. If you lose some playtime in WoW, you get a 1.75 multiple, just not worth it. Even if you are the most cautious person in the world and very risk averse, I doubt this plan makes much sense.However, just to clear it up, it's NOT a Ponzi scheme. Just because you heard about Madoff and his Ponzi scheme, don't think you're smart to throw that term around at any money-making operation.
1-16-2009 @ 1:59PM
Hardly a ponzi, it's really an insurance model.Imagine this, 100 people are clients paying an average of 10 dollars a month. Gross income: $1000.00Assuming that 30 clients are down enough to pay nothing(100% compensation), and 20 receive an average of 150% compensation, leaving 50 paying full price, we have...30 x 0.00 = 0.0050 x 10.00 = 500.0020 x -5.00 = -100 .00Profit: $400.00Remember, most of the time most of the realms are up, even if your realm sucks.
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