For example;
If someone invests $1000 and the scheme runs for a year, they will get 12 payments of $100 (10% per month for 12 months) so they will now have $1200. They would have made $200 profit.
Is it just me, or does that not make sense?
I'll try and explain it better.
A Ponzi offers a return of 10% per month.
A person decides to invest $1000.
If the Ponzi pays out for 12 months, the investor would have been paid $1200 in interest.
But they invested $1000, so they actual profit is only $200.
$1200 (interest) - $1000 (investment) = $200 (profit)
But most Ponzi wont last 12 months, most will not last more than a couple of weeks.
Hope this makes it helps.