Between Legitimate Referral Marketing & Fraudulent(Ponzi) Schemes

In Nigeria, we wake up each day to the birth and death of all sort of Fraudulent (PONZI) SCHEMES.

The noise that comes with PONZI Schemes seems to be over shadowing legitimate REFERRAL MARKETING SYSTEMS that are designed to support the growth need of an actual business. Thus, the Nigerian customer generally have come to associate the word “Referral Marketing” to fraudulent schemes.

Sadly, it seems no lesson was learned after many Nigerians played the “ Russian Roulette” with the Russian founder of MMM. Russian Roulette ‘is the practice of loading a bullet into one chamber of a revolver, spinning the cylinder, and then pulling the trigger while pointing the gun at one's own head; an activity that is potentially very dangerous’.  

The principle behind the game of Russian Roulette is that someone must die before a winner can emerge. Consequently, in comparison to MMM, the gentleman from Russia won the game; destroying a peoples’ sense of dignity.

That said, it is pertinent that we clearly understand referral marketing and why it is not one and the same with the above.


Legitimate Referral Marketing System.

Referral marketing is a sales plan designed to significantly increase brand awareness/- product purchase. This strategy is executed through the use of word mouth and other communication channels - requiring some level of personal touch. 
Existing customers are motivated to talk to new customers about your product and service because of the attached measurable incentive - designed to reward your effort and encourage you to market more. Using the i-naira.com system as an example:

  

This referral is a single level scheme where the existing customer simply gets rewarded one-time on each effort. See diagram below:

 •Existing customer’s business with new customers will end after receiving reward.

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•No residual income.

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•No downlines.

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•New customers can then enjoy the benefits of the platform.

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•Refer and earn or other value benefits of the platform.

Many legitimate businesses in Nigeria, use referral marketing to increase product and brand awareness by rewarding their customers for supporting their  strategic goals. Here are some legitimate referral marketing schemes championed by well-established corporate entities in Nigeria.

Companies that are using legitimate referral marketing scheme

GTBank - iRefer

iRefer is a customer referral scheme designed to reward GTbank customers for inviting their friends, families and colleagues to open and maintain GTBank accounts. Click here to learn more.

Diamond Bank - Diamond Y’ello Refer & Win Promo

This scheme is used to encourage customers to invite family and friends to download the Diamond Y’ello App and USSD String that encourages self-serve and ease transaction processing for Diamond Y’ello Customers. Click here to learn more.

Interswitich – Quickteller Referral

Customers get paid on a single level for every transaction a referred customer carries out using quickteller. Click here to learn more.

In view of the aforementioned, we at i-naira.com  (an online auction platform) has implemented same strategy to grow our auction bidders base using a single level legitimate referral marketing scheme.

i-Naira.com  - Give & Take

Customers get paid instant N1000 in bank on a single level each time they refer a new customer to join the auction platform. Registration on i-naira.com is not free. The registration fee N2000 is designed to create a descent Nigerian bidding community online that is void of freeloaders. The reward comes from registration fees paid by the new signed up customer.Click here to learn more

 Differentiating PONZI Schemes from Legitimate Referral Marketing Schemes

Consequently, we enjoin the public to be guided against platforms that invite them to play the “Russian Roulette” with their savings or borrowed money. There can only be one winner.

Thank you.

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