Cyber Tips – Reality – 1

There was a particular site created by two M.I.T. students to make money in 2012.

Massachusetts Institute of Technology ranks 4th in the United States.  It only accepts 7% of those who apply and demands a 1570 SAT score.

In other words, if you attend this school you are pretty bright and can do simple arithmetic.

Tuition is over $53k a year and to stay on the dorm costs $12k, so one can understand the need for cash.

Borrowing $10k from an Uncle , these two students created a ‘writing site’.  The content of the site would be supplied by those who joined leaving the students with no work, for once the site was set up it was all A.I.

Having worked the numbers the reason they borrowed the $10k was to pay all new users that first time when they reached the threshold of $25.00.

By their calculations, the users would, via Ad Sense, create a nice pool of money over time.  This money they would use to pay their expenses.  The A.I. was set to pay only a percentage of users that second time.  

Those who brought in 5 other users would be paid that second time.   Those who came from 3rd world nations who had not brought in other users would be paid only that first time.   What ever sums those from 3rd World nations accrued  subsequently would not be paid to them but taken by the site.

The site was very successful.  Within a short time there were over 200,000 regular users.

The Owners repaid the Uncle.   Having worked out their monthly expenses, they set the A.I. to immediately scoop that off the top of the earnings and what was left was used to pay those who reached the threshold the 1st time, those who brought in 5 or more other users,  and what was left, pay those in 1st world countries who had reached the threshold that 2nd/3rd time.

The ‘threshold’ was raised to $50.00 in December of 2013.  This enabled the Students to reap more revenue.

The site closed in November 2015 and all the money in the account was taken by the Owners.