Nah, I still don't think it is all real money. You are mostly using money put into the system (and then got back directly as profit) to buy new ad packs. It is akin to compounding from my point of view, because you are recycling it over and over, instead of creating new wealth.
A very simplified example - if I put $100 into a closed system profitshare, and then get $5 back the first day in profit. I then put the $5 back in - is there really $105 in the system? No there isn't. The fact that there are many people putting in money, and that ad packs eventually drop off doesn't change that fact. If there is no revenue generated from funds collected (can't really be if 88% is paid out per day), either by trading or through advertisers who don't participate in the profitshare aspect, then you aren't creating more money - other than by bringing in more members.
In theory, they could use the probablities system and suppose that no more than a certain percentage of members will cash out at once, and so invest a proportion of funds to generate revenue from them. However, this would make the system a partial ponzi (paying out revenue you don't yet have), and so is not a good idea whilst set daily payouts continue.
That's my take on the system. The passive CEP opportunity seems different however - since they take funds, generate revenue from it, and pay back profits they make. You can't really do that with a profitshare if the funds are always moving in and out the system.
Until an autosurf comes along that only pays people using profits generated from member capital then I don't think I would call any such site fully legitimate. This means (1) no daily / set payouts, (2) revenue generation model that can be sustained, and the concepts used made clear to members, and (3) making profit to pay profit. Maybe this is close to what the passive CEP "investment" site does ( I don't know), but the CEP surf sites don't follow the same model.
Anyone else care to comment on the above, in case I'm missing something in my analysis. Please, no "evidence" based on past history or loyalty, I just want to get down to the rationality and reasoning behind the profitshare daily payout model. I've been wrong in the past, I'll be wrong again - all I want to do is discuss how it works and throw some ideas around.
