Is Banners Broker A Ponzi Scheme?

Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.

Banners Broker Ponzi – Disclosure: I’m currently in the process of trying to buy my first panel. I say trying because whatever BB may be they are certainly experiencing massive growing pains.

Any way I’m sure they’ll sort their processes out and get me signed up so I can see what happens for myself.

But in the meantime having just read about the Zeek Rewards closure by the SEC I’d thought I’d see what Banners Broker news there may be.

I’m currently not posting any affiliate links (which I would if I was sold on the concept) to Banners Broker, but did find a few interesting articles.

The following comes from a BB affiliate (clearly biased) but who does raise some very good points…

Objection: Banners broker is a ponzi scheme!

I could deal with this from my own understanding of the word ponzi, but let’s take the wikipedia definition of a ponzi scheme and go through all its points, one by one. This way, you can rest assured that those that want to believe this as a ponzi scheme, have no legs to stand on.

Here is the wikipedia definition…

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments to investors. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.

Now let’s go through it, bit by bit.

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.

Banners broker pays its agents a share of the revenue it receives from advertisers who buy impressions from them. Banners broker does not pass on other agent’s money on to other agents. It all comes from the money paid by outside advertisers.

The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.

Banners broker does not promise quick return and nether does it give abnormally high returns.
If you buy a panel, you would get only twice the amount you paid for it (not abnormally high) and it could take anywhere between 20 days to 10 months depending on the type of panel you buy. This proves that it’s not a get rich scheme. It’s not short term because the time for a decent return could take ages. You have to be prepared for this as a banners broker agent.

Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

Remember, you don’t get high returns. You get slow consistent returns.
Furthermore, new agents are not needed for you to make money from the system. Your income is completely independent to new people joining banners broker because your income comes from the money paid by advertisers.

The system is destined to collapse because the earnings, if any, are less than the payments to investors.

This is a normal business where the money paid by agents is not needed to pay other agents. The earnings are far in excess of the amount needed to be paid to its agents and this is proven the company growing on a massive scale. They have offices in many countries and are always expanding.
They have enough money to pay their agents and then have a hefty profit on top of that.

Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.

Banners broker has been going since 2010 and has no problems with any of its business ethics or its business model. There is no investigation because it doesn’t even fall near the description of a ponzi scheme. If it did, you’d hear about it somewhere or other.
Currently, banners broker has over 15k agents and that number is increasing rapidly, day by day. Don’t you think that if it was in the least bit illegal or unethical, the news would be plastered all over the media or the Internet?

Banners broker is a legitimate firm and is currently making all the right moves in order to become tax compliant in all the countries it serves. Would an illegal operation even think about doing that?

After reading these answers, does it still seem like a ponzi scheme?

The article in it’s entirety also answers questions about Banners Broker  being a MLM scheme, and running any other form of morally questionable compensation plans. You can read the entire article here.

The article also starts off questioning why so many people seem so narrow minded when it comes to business opportunities, so I have edited down to what I felt was the ponzi related content.

Banners Brokers Pyramid / Ponsi Scheme Video

Again biased but funny and inventive…

What are your experiences with Banners Broker?