Many multi-level marketing and Ponzi schemes in Uganda have adopted affiliate marketing techniques to lure unsuspecting people into fraudulent ventures. The schemes usually present themselves as having options to make money passively with periodic returns on investment such as clicking on video advertisements or watching a YouTube video.
However, the return on investment is never as promised. Watching a YouTube video has a very low return especially when you are not the originally intended viewer of the ad.
They target such simple vectors because it is easy to convince someone that by watching hundreds of videos, part of the ad revenue will go to the viewer. This basically makes the investor part of what is called ‘click’ farms or someone being used as part of a larger group to inflate viewer numbers on a video, website, or game.
This is not new even in Uganda, previous collapsed Ponzi schemes like Telexfree employed the same tricks to steal billions from unsuspecting people worldwide.
However, the current proliferation of mobile phone devices, internet connectivity, and mobile payment solutions has created a perfect storm that previously didn’t exist on such a scale.
But whereas the ad agency may collect revenue, it will never trickle down to the investor because it is a scam anyway. The investor is also losing money in data fees to access and view these ads.
YouTube Ads are highly targeted to specific viewers in specific regions. Watching a video meant for people in a certain part of the world does not have the same impact.
The links provide a convenient method through which the message can be passed along on social media. The promise is that for every new sign-on using your promotion code, you get a fraction of the money the new signee spends on investments.
This is typical multi-level marketing but this time using well-known and convenient methods to propagate and spread online.
Accessing the Investment Websites
One has to pay first to be given access to an admin panel on these websites where they can view how the scheme works. Without this initial fee, there is no way that you can verify whether the scheme is genuine or not. This initial fee is usually enough for the scheme to continue running even if you don’t go forward to buy other investments.
How to avoid being a victim
At this point, it is advisable that people stay away from virtual investments from people that do not have the requisite financial knowledge and record. A 20-year-old YouTuber or TikToker should not be a profile of someone who gives you financial advice on your hard-earned money.
It’s important to also make necessary background checks and if a scheme looks shady, kindly walk away. Many of the architects of these schemes are based out of the country and it would be hard to access justice in case you are fleeced.
