Is The Money Cycler a No No?
Money cyclers are probably one of the greatest cons out there. People think it’s great to just put money into a money cycler and then just wait for X amount of money to pop out the other end.
I will use a money cycler that I am in as an example. What! You are saying they are rubbish yet you are a member of one.
Well I got into this one by accident the position in it came free with some solo advertising I bought. $1 was put into this money cycler for me. When it cycled out I would get $243. Fantasic until I worked the maths out.
This money cycler is what is called a 3 X 5 cycler. What his means is that there are 5 levels to cycle through. To move from one level to the next 3 new members need to enter at each level.
It works like this.
In this example of $1 you are entered at the first level. If you are the first to join then when three other members enter with their $1 you cycle out to the next level and are entered at $3. Now to cycle out of this level to the third level you need three people to cycle out of the first level that will then cycle you into the third level entering with $9 and so one to the 4th level and then to the 5th level.
Now before you can cycle out of the second level and into the 3rd , nine more members need to join at the first level to force the three members that moved you out of this level to move into the 2nd level that then will move you into the third level. This goes on right up to the 5th level where when you cycle out you receive your $243.
Now for you to cycle out of this 5th position a total of 243 members need to join at the first level. Great fantastic, but remember you were the first to join so you are OK.
What if you were the hundredth person to join. This means that you would need 3 x 100 = 300 people to join below you before you will pop out of the first level and into the second level. So how many people are needed to join below you before you cycle out of the 5th level?
Answer: 243 x 100 = 24,000 new entries would be needed at level one for the 100th person to cycle out at the 5th level.
Well by the time the 24,000 person entered at the first level that member would need:
243 x 24,000 = 583,200 new entries for this 24,000 member to cycle out.
I think you may realize that these sort of cyclers just grind to a halt fairly quickly. It amazes me that people actually join them.
I will also tell you why I think they are a con. As you can see if you are the first person to enter the cycler only 243 people need to join for you to cycle out of the top position. Who do you think puts themselves in the top position. The instigator of the cycler of course.
In the case of my $1 cycler one person had the top 21 positions. There are only 16 now so he has cycled out 5 times already. There are about 1400 entries in level one so about another 3700 people need to join for the rest to cycle out of the top position if this is ever reached. Thank you I have just collected $243 x 21 = $5103 bucks. Also I am sorry the cycler has slowed down to a crawl.
You can probably see now that cyclers are a no win unless you get in very early and the promoters make sure they are the ones in early.
Some of these money cyclers ask for $5 to $10 to enter and promote them as a lightning fast cycler. This is bogus because the maths don’t work out.
There are many variations of this type of money cycler but in the main they all eventually grind to a halt.
Recommendation: do not join money cyclers.
