The history of MMM

Posted by Admin on 9:06 PM

MMM is the world's largest community of mutual aid and donation exchange. Now MMM unites millions of people from Europe, Asia, Africa and America. But in order to reach the current level, the Community had to travel a long way of development and improvement, associated with difficulties.

The purpose of MMM is to make financial relations between people fair. This goal has never changed. But the tactics to achieve it has evolved, and adapted to the existing conditions. Sergei Mavrodi, the founder and director of the Community, demonstrated with his personal example that there can be a person who will never give up and retreat. The solutions that will make the Community even more powerful, stable and massive can always be found.

MMM is an evolving living organism. The past experience is analysed and conclusions are made on its base - because of this the mechanism of the Community is constantly improving and becoming more sophisticated. And now we would like to introduce you the history of the evolution of MMM.

МММ –  1994

The history of MMM began back in 1989. Then in Moscow a cooperative "MMM" was registered.  Up to 1991, the cooperative was mainly engaged in computers and office equipment sales, but the direction of the company activity often changed. The business was quite successful: a lot of Muscovites probably remember the days of free travel on the Moscow metro that were realized by MMM several times in 1991.

October 20, 1992 "MMM" was registered as a joint stock company. February 1, 1994 this JSC "MMM" began to sell its shares, and people immediately began to buy them with great enthusiasm. What appealed to people is that the company bought them back, but at much higher rates. So, the rate growth was nearly 100% per month. The principle announced by the company "today is always more expensive than yesterday" worked faultlessly.

The shares were spread like hot cakes, and very soon it became clear that issued 991 thousand shares would be not enough for a long time. In this situation, the company tried to register immediately the second issue of a billion shares. There were no formal grounds for refusal, but the Ministry of Finance still refused the company. Sergei Mavrodi came up with the idea to release "MMM tickets" that were not securities. It was a really brilliant idea! After all, as formally they were just wrappers, they could be printed in any quantity and without any approvals.
MMM tickets were sold in thousands of points of sale which were surrounded by large queues of people. Day by day the value of MMM shares was increasing. The company was in a huge success: by the mid-1994 the price per share had increased 127 times, according to various estimates, the number of investors had reached nearly 15 million people, and the company's turnover made up one-third of the country's budget. There was no time to count money, and it was counted "by eye", with the rooms where it was stored.

MMM shares price (buy and sell prices of MMM tickets) was changed twice a week (on Tuesdays and Thursdays, as it happens now in the MMM Community) and was published in almost all newspapers, on the radio and TV. In short, MMM 1994 advertisements were practically everywhere. Also there were all sorts of draws among investors, for example, the sensational contest "Miss MMM-94", you can find its photos in the archives.

When the scale has exceeded all conceivable and unreal expectations, the government got worried and did not want to put up with such a huge and uncontrollable economic structure. Besides, Sergei Mavrodi did not have any contacts with the authorities in principle, although he kept being invited to the Kremlin "for negotiations." In addition, there was the impending cash privatization, the country was divided between "current" oligarchs, but MMM, with its almost unlimited funds, could prevent this process. And Sergei Mavrodi did not hide his intentions and repeatedly stated publicly that "would not allow to rob the country."

The mass media started an extensive campaign against MMM masked as “warning investors about danger”. It was the beginning of a large-scale government’s pressure on the company. Now the central TV-channels demonstrated "anti-MMM" commercials. Officials of all ranks often performed on TV explaining that MMM was a scam. They urged people to sell their MMM-94 tickets as soon as possible.

MMM-94 collapsed on August, 4t. Sergei Mavrodi was arrested in his apartment at the Komsomolsk Avenue "for tax evasion." The storm of his apartment (commandos descended on the eighth floor balcony using lines) was broadcast live on all TV channels. The storm of the central office of MMM took place at the same day. Moscow department of the Tax Inspectorate conducted a search there and announced that in the course of its examination "they have found gross violations of tax laws" prescribing to recover 49.9 billion rubles to the budget. The verification took nearly half an hour, and even now no one can still give a definite answer what happened to the money of MMM-94. The authorities simply turned a blind eye to it. Although hundreds of witnesses claimed and confirmed the fact, even under oath in court that they had seen 17 KAMAZes taking out all the cash through the backdoor at that time.

In October 1994, already being in prison, Sergei Mavrodi was able to register himself as a candidate for the State Duma on the Mytishchi district and was released from the prison. Later, he won the election and became a member of the State Duma of the first convocation.

He refused all parliamentary privileges: salary, service apartments and cars. He did not visit any meeting of the State Duma. In October 1995, the State Duma deprived him the deputy status for "participating in business." In December 1997, he was put on the Russian and international wanted list via Interpol.

Stock Generation

Being wanted, Sergei Mavrodi, straight from his apartment in Moscow, where he was hiding, set up a new project, that time it was on the Internet, - Stock Generation (SG). It was recorded as a game of chance and focused on the Western countries. During the period from 1998 to 2000, hundreds of thousands (at least! Officially announced figure was 275 thousand, but there were some speculations in the Western press about millions or even tens of millions members) people from the US, UK, Australia and other countries joined the SG. Formally, the SG was just a game. It had the appropriate gaming license, and it did not violate the laws relating to securities. More precisely, it had nothing about them! Therefore, when the US Securities and Exchange Commission (SEC) tried to accuse SG officially, it lost the case in the Boston court, which was quite unprecedented.

SG Stock Generation was registered in Dominica, the famous offshore zone with a rather weak legal framework. But, nevertheless, the activity of Stock Generation was stopped on the base of the court order.
MMM-2011: with each attempt getting closer to the goal
It became clear that the main problem of previous systems is that the money was physically located in one place, and the structure itself had a legal status. All this caused the collapse of the projects and the seizure of funds through a variety of mechanisms available to public authorities.
This made Sergei Mavrodi create a better system - MMM-2011 which kept the money on the participants’ accounts only. MMM-2011 was created completely from null, and made the revolution - before the world had never seen any analogue of system! Sergey Panteleevich was not " the owner of MMM" any more, but took the role of a consultant. He communicated with the participants through the official website through weekly video message in which he gave recommendations and expresses his thoughts and ideas on the system development. Participants had the right to follow these recommendations or not.

The project was launched at the same time when the film "PiraMMMida" was released in Russia. The plot was based on the book - the story of MMM was told by Sergei Mavrodi himself.

The system fully worked in a normal mode and provided the alleged payments to all participants. The main difference of MMM-2011 from the pyramid schemes is the lack of "tops". All the processes were managed by the participants themselves: there was not a legal entity or an official office, a central repository of money. MMM-2011                was a pyramidal structure of managers (10th manager, 100th manager, 1k manager, etc.) who each had a personal bank account and participants, among whom there also could be leaders. MMM participants, who would like to invest in the system, put their money into a ten’s managers’ personal accounts, from which the latter distributed payments to other participants. If there was not enough money for a large payment - the 10th manager turned to the 100th manager, the 100th manager to the 1k managers etc. The missing amount is transferred from the other ten’s groups or hundred’s group of one structure. All the money was dispersed among the thousands of bank accounts of the MMM cells leaders.

MMM-2011 caused quite a stir in Russia and neighboring countries. And for obvious reasons the authorities began to fight against the system. Tactics in the destruction of the MMM-2011 was quite similar to the one used in 1994: artificially created panic among the participants in all the media, arrests of Sergei Mavrodi and 10th managers, advertisement bans and closing the offices - all these were the reason for the collapse of MMM-2011.

The first ones who panicked because of the large-scale of MMM anti-campaign were leaders of structures. Money that had been stored in their bank accounts was enough for simultaneous payment of 0.1-10% of the participants of their structure, not more. They knew it, and, therefore, began to hold money to pay for themselves and their loved ones. Average time of getting help increased from 3 days to a week or more. Payments delays quickly grew and scared a wide range of participants - the panic spread to them. Sergey Panteleevich failed stopping theу panic even with the use of a wide range of different measures. And June 2012 the restart was declared – the end of MMM-2011 and the start of MMM-2012. Money of MMM-2011 has been paid to participants at the discretion of managers - all equally, or those who are most in need. During this difficult choice, many participants began to pursue their former leaders.

MMM-2012: everything is just beginning!
June 16, 2012 Sergey Panteleevich announced the launch of a new MMM system - worldwide mutual-aid fund. That day MMM system meant two ways of participating: participants who wanted to provide assistance (make a "contribution") and participants who wanted to get help with interest (ask for "assistance"). Software of MMM personal account considered the sum of all stored money in the accounts of the participants who clicked the button "Provide Help" common money of the system. When someone wanted to get paid from the Systems, the MMM asked one or more participants clicking on "Provide helped to send money to the person requesting for assistance. Thus, MMM - was a common virtual wallet with all participants’ money and software connecting people who wanted to provide and get financial assistance at the same time.

After starting MMM-2012 faced serious problems with advertising (previously it was relatively free). And besides, there was a great shock after the restart - all this reduced the personal activity of 10th managers. They didn’t feel like attracting new people and contributions. What for? Everything works well and you can sit on the couch and count money in your account. Some of the "top" MMM leaders having access to the statistics of its major structures foresaw the situation. They together decided to take advantage of the situation. These actions caused a massive panic among the participants. It was the end of December 2012.

Global Experiment
January 25, it was announced about the restart in MMM and the creation of separate structures with their names and rules. The whole concept of MMM was changed. Now every person, who thought he was smart enough, could come up with their rules of work, place them on the site, wait for them to be realized by programmers and get to work on the basis of total private accounts.

It was a global experiment: the official site featured more than 250 structures with different rules and interest growth. Administration of MMM in no way interfered with the work of these structures, leaders care about their development and payments on their own. Against this background, Mavrodi announced the creation of his "Experimental Structures" (ES) with the highest growth rate - 100% per month.

Despite all the warnings about the dangers of participation in the MMM, restart shock and betrayal, a lot of people were seized with greed on the high interest rates of ES. The participants began to make large  contributions, sometimes highly risking. Consumer’s approach - investing money, making money turnover and grabbing as much and fast as possible. It failed to provide the necessary inflow of incoming money for MMM stable operation.

May 21, 2013 it was announced about ES debt resetting, changing interest rates and changing the name "Experimental Structure" to "Etalon of stability." Interest rates were chosen to be optimal based on the experience of existing 250 structures. In few months all the 250 structures were united into one - in MMM. The system, after nearly a year searching the optimal path of development, again becomes united and operates by common rules and under the supervision of S.P. Mavrodi. Everything was back to normal.

The "Pause" mode instead of Restart!

In early November 2013, for the first time in the history of MMM, the PAUSE mode was introduced. This is the universal mode of MMM operation against any emergency. Now we can say without hesitation nobody loses money in MMM.  You may not receive interests you hoped for, or receive them - but 2.5 months later. But you won’t lose money! In this regard, a lot of participants of MMM, upon the recommendation of the S. P. Mavrodi, began to give short term notary guarantees for the security deposits to the new members, secured by their own means. 

16 August 2014, despite the fact that Sergei Panteleevich said there would be no any restarts in MMM – it was announced the next restart. It was very special in all senses.

Firstly, this restart was completely caused by the participants themselves for no visible reasons having destroyed MMM just in one week. The panic! A week ago everything was paid, and today – it is over – no payments. The participants’ reaction to the "intermediate MAVRO", introduced after the second in the history of the MMM PAUSE mode was totally unpredictable - people started simultaneously asking for help (for "intermediate" withdrawal was not instantaneous, but money was taken out by equal parts during four weeks).

Secondly - restart rallied leaders. No one left MMM and no one gave up (as it happened after the previous restart). They all together kept promoting the ideology of the Community, conducting master classes and seminars.

MMM Global: general goals – global solutions

MMM gives its participants the opportunity not only to get financial assistance but also to be a part of a progressive and growing movement, creating an alternative to the modern financial system. Today, some states have already lost their financial sovereignty. Accordingly, people from different countries, only together, can change the world for the better. Sergei Panteleevich always pointed out that MMM is an international community and we must make every effort to involve as many countries as we can.

Structure of the MMM Global was established in the spring of 2014. If before countries used to develop independently from each other before, now we have a team which is responsible for the development of many countries. This opens up great opportunities for experience sharing and effective work coordination.

From the very beginning, MMM Global set a course for an intensive use of Bitcoin. Bitcoin is an international decentralized electronic currency. Transfers in Bitcoin create a united circulation of mutual aid between participants from different countries. In each country, MMM has its own dynamics, its own rhythm of development. And the interchange between countries helps to balance the inflow and outflow. It helps to sort out several problems at once. Firstly, the problem of unconfirmed Mavro is not relevant any more, when the number of requests for donating money exceeds the number of requests for withdrawal. In this case, the participants from one country help members of the Community in another country and thereby confirm their Mavro. Secondly, if in one country there is not enough money inflow for payments, in a difficult period the participants of this country will be supported by other countries. And finally, sending money via Bitcoin is much faster, easier, and cheaper (the fee for transfers is hundredths of a percent).

What is more important is that in MMM Global the approach to managers’ recruitment and training has been changed. Earlier -- if the participant registered a new member, he automatically became his Manager. It turned out that any member can become a manager, even those who invited at least one referral. The quality of work of most these managers was low. While leaders are the face of the Community, the success and stability of the system development fully depends on their knowledge and loyalty. Moreover, the task of the manager is not just to attract contributions but to spread MMM ideology.

In this regard MMM Global decided to assign manager’s status only to those who graduated Manager’s School. Any one can enrol in the School. But, in order to graduate, you need to take the MMM Regulation Test, learn the techniques of working in social networks, record a video about MMM ideology, and participate in the business game. According to the game scenario, the participants start and develop MMM in a particular country. Thus, future managers learn to work in teams, learn what difficulties they can face, and understand what steps need to be taken to solve them.

Another innovation of MMM Global - implementation of the model MMM Extra. Daily each participant is requested to do a web-task, for doing it they are awarded with additional interests. Tasks are focused on the development of MMM. For example, post a message advertising MMM in a social network or forum, share videos or images etc. It takes no more than 15 minutes to perform a task. And on the day, when the participant performs the task, his Mavro are accrued with extra 0.3% (so those who have fulfilled all the tasks of the month got their Mavro accrued by 30%, and 40%). But most important it is achieved by involving all members of the Community in activities related to its development. Thanks to MMM Extra, not only managers, but ordinary participants can realize how easy it is to contribute to the development of the Community.

The evidence of the success of MMM Global development is that since the establishment of the structure, the spring of 2014, there have been neither pauses nor restarts. Modern MMM has taken into account the shortcomings and problems of the past models of work that could be identified only by experience. The main goal was to create a stable Community, which is highly protected from the destructive influence from outside and from the irrational behavior of the participants themselves. Create rapidly growing and involving many countries Community. And today we are closer than ever to achieving this goal!

We are the Community!
We Can Do a Lot of Good Things!
Together we Change the World!

Nama Anda
New Johny WussUpdated: 9:06 PM

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