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by ZephyrBlu 2025 days ago
I would argue that the ponzi scheme is much broader than what is described here.

1) Try to start an online business. It doesn't really matter what you're doing or if it succeeds as long as it's marketable to people aspiring to create an online business

2) Make a big fuss about the launch on all social platforms (Twitter, HN, PH, IH, your blog, etc) and hope someone with a big audience signal boosts you or you get lucky

3a) If you start making money, awesome! Constantly post revenue numbers, things about Building in Public (TM) and "you can do it too!". Your audience (And therefore revenue) will compound exponentially

3b) If you 'fail', make a blog post retrospective called "Lessons Learned" and blast that out everywhere as well

4) Repeat steps 1-3 until you hit 3a. Throw in a few "6 Months of Building in Public" type posts if you're really having trouble

In reality, I strongly believe that very few people end up making it through this type of process and success mostly comes down to luck or connections (Anyone who already has an audience can easily pull you up).

1 comments

How is that a Ponzi Scheme? Self-promoting and narrative-building to make it sound easy, but if you’re building something that someone will pay you money for, you’re literally just building a business...?
Slightly tongue-in-cheek, but it's a ponzi scheme when they start selling courses on "how to become an entrepreneur".
I know a kid who ended up doing that for his comp sci "internship." I feel so bad for the guy but he really didn't even learn how to code so it's frankly all on him.
Yes, you are. As the article says, you are actually making money and gaining followers.

It's not a ponzi scheme in the literal sense, but these businesses are built off the back of other people who believe they can do what you're doing supporting you (In the article this is by paying for your course).

Some of them will go on to create their own successful businesses (And perpetuate the cycle), but most will most likely fail.

There was a post on Indie Hackers not long ago about a guy who said he lost thousands of dollars trying to build a business. I'm sure there are many more people who got into similar situations.