Studiotraffic also a Ponzi Scheme? Think about it

There have been accusations about Studiotraffic being a ponzi scheme. Practically this would mean Studiotraffic does not gain much revenue from its other programs and advertising, but the payments would come from new investors ('upgraders'). There is no certain data about this as it is impossible to know how many people buy advertising credits or banner ads from Studiotraffic. Studiotraffic has refuted this accusation and points out that they do not have to rely on upgrade fees to pay their members because they use the proceeds from their other online businesses to supplement their payout fund. They have their own web radio station, an on-line shop, and a web hosting business to name but a few, and there are more revenue-generating programs in the pipeline. Studiotraffic U.S. does not seem to be able to pay off the monthly withdrawals, and John has stated that if and when the U.S. becomes too much he will have to close off the U.S. section of Studiotraffic. He also stated that he does not need the U.S. anymore because he is now opening business in China. In November, US members' accounts were blocked from surfing for "in-profit" members whilst all accounts were audited. In December the same occurred with UK accounts.

Just recently, there seems to be a move towards a Kennedy-esque era of 'ask not what your country can do for you', with people being barred from surfing until they agree to 'work' for Studiotraffic. Most recently this has occurred with members of the UK, who from January 2006 are required to join "sales teams" or contribute in some other way to avoid losing their accounts. John Horan has stated publically that the UK was selected for reasons of poor member contribution, rudeness to staff and lack of profitability.

They have also introduced an intiative for those in profit to donate additional earnings into a fund called the Global Advertising Campaign (GAC), essentially asking such said members to contribute to the future while helping to ensure the longevity of Studiotraffic. GAC states that a percentage of the money you earn has to be returned to help studiotraffic.

John has recently stated that the auditing process is soon to be ended, but that affected members will now be required to compound all earnings for six months, rather than the three originally stated. This means that members will not be able to withdraw any earnings for this period.

All of these matters have led to speculation that studiotraffic is suffering from money problems. However this cannot be proven.