Tsu is not a scam or a pyramid scheme

Recently Jon Dunn on Tsu pointed out that some Google searches implied that Tsu was a bit dodgy.

I think the other results relate to Texas Southern University.

The definition of a pyramid scheme is that you use money paid in by some people to pay others, so that it will eventually collapse when people realise they will never get paid. It's a scam rather than a business.

I think this idea is due to a misunderstanding of how the Tsu algorithm works. It's true that people get paid based on what those they recruit make, but none of them needs to pay in any money. All the revenue comes from the advertising on the site and in the app (available on Android and iOS). The company is taking 10% to cover their costs, but still has some way to go before they are profitable.

The fact is that people are getting paid just about every day. Some of them post pictures of the cheques they have received to encourage others. The biggest I've seen is this one by songwriter Andrew Fromm.

He's by no means a typical user as his contacts in the music industry means he could recruit people who can easily grow a large network. He has 29,000 followers himself, so he can earn many dollars a week from his own views regardless. I know of many other people who have had hundreds of dollars from Tsu over the eight months since it started.

Personally I've made about $40 and I've given about half of that to charities on the service. There are about forty of those now and they seem to be doing well. The recent Tsu Madness event raised over $1000 that went to a wildlife charity. There are various events such as #FiveCentFriday that encourage regular giving. You can give as little as one cent, so just about anyone can donate.

It's still going to take me a while to get to $100 (threshold for a payout), but before then I may use some of my funds to buy some art from an artist on there. I've said before that the Tsu market has great potential and it seems to be taking off. It just needs a few more features to make life easier for those selling goods and services. The site is still evolving as they find their way.

The fly in the ointment is the fact that Tsu is not growing so fast of late. They have reached around four million users, but public statistics seem to indicate that fewer than 1 in 40 is visiting daily. I know a lot of my child accounts are dormant. Somehow they need to keep people engaged and actively recruiting. I think that some of the newcomers do not understand that they stand to benefit from getting their friends to join up and use the site. There is still massive growth potential, so it will be a long time before new users stand no chance of building a network. I've written about that too.

I'll keep using Tsu because it's fun. There are nice, friendly people there and we have a laugh. If I make a little extra money, then that's a bonus. As always, you can find me at http://www.tsu.co/steevc