weblologo.jpgYesterday, we wrote about the latest wave of Internet pyramid schemes.

We failed to mention Montreal’s Weblo, a company that sells you virtual domain names, so you can buy www.LosAngeles.com for a few bucks (even though the domain is owned by someone else on the real Web), pretend you own that city, and then begin selling off towers and other properties in that city to the greater fool who comes along to bid on it. It boasts other ways to make money.

By owning a city, you become a “major” and earn a 0.5 percent surcharge applied to every transaction in their city, so like other pyramid schemes have an incentive to get others to sign up. You get more revenue if people visiting choose to “rank” your site and if you update your site at least weekly. You’ll get a percentage point of membership fees from members who register in your city, 1.5 percent of purchase price on properties in your city, and a whopping two percent of all ad revenues on your site. (Weblo milks 98 percent). And like all good pyramids, there’s a hierarchy. If you become a “governor,” you get even more revenue. You can even become President.

There’s a video demo of the site here, created by Robert Scoble:

http://www.podtech.net/player/podtech-player.swf?bc=3efbd44bc7ca4072a5718e39f31144cc