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Iowans attracted to Internet 'Ponzi scheme'

Gunnar Olson, at the Desmoines, writes about the attraction of the AdSurfDaily Ponzi scheme to Iowans.

"Some 25,000 Iowans have spent money with the company, according to Ankeny resident Mindy Bales, who described herself as one of the earliest and most successful promoters of AdSurfDaily in Iowa.

Bales, 32, said she alone brought in $5 million from Iowans to the company.

Bales ardently stressed that AdSurfDaily is not a Ponzi scheme but a legitimate business, charging companies to drive traffic to their Web sites and paying people to surf those Web sites 10 to 15 minutes a day."

Of course, this makes no business sense: why would an advertiser spend money buying traffic that is not interested in making a purchase?

That the economic nonsense of AdSurfDaily was not sufficient deterrence for 25,000 Iowans is a fascinating problem in social psychology. Maybe they also sold credit derivative swaps?"

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Full post as published by Misleading Advertising Law on October 27, 2008 (boomark / email).