Sunday, December 30, 2012

What is Forced Compounding?


Forced compounding is very popular in PTAs and Revenue sharing sites. This provides further sustainability and prolonging of the lifespan of the program since it won’t allow the investors to do a hit-and-run easily.  The drawback of forced compounding is that it requires the program to have increasing number of incoming new players daily. Most programs with forced compounding last until its 3rd cycle. The problem for the closure will most surely be cash flow and low number of incoming investors. Programs with this option are only good for 2 cycles. Do not join programs with this option if it is already in its 2nd or 3rd cycle because it is bound to close down after some time.

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