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Scrum a Pyramid Scheme

istock_000008357317xsmallA [financial] pyramid scheme is a non-sustainable business model that involves the exchange of moneyprimarily for enrolling other people into the scheme, often without any product or service being delivered. [1]

To compare Scrum with this is not only completely nonsense it also shows only that these people are obviously completely envious about the financial success of most Scrum consultants world wide.
Scrum’s core value is “transparency”, and obviously in the agile community is not clear what is the money flow in the Scrum  business.
So lets explain it a bit ….
1) A Scrum Trainers investes around 10000,- in training
1400,-  Euro for the CSM, 100,/ US $ for the CSP, traveling to 5 trainings he need to do 5000,- Euro, books 500,- and some conferences he needs to go … X Euro, classes in presentation x Euro, around 100 hours in preparation and running classes = 100 hrs x 50 Euros of his billable time) till he is allowed to ask for the CST certificate.
2) If you are accepted you pay an anual fee to the SA of 7500,- US$
3) Then you need to invest in marketing for your classes. This is usually in the first year 50% to 70% of your costs to run classes.
4) A class creates after 3 years and average profit of about 60% if you do have an average of 15 people. But then you are good in cost cutting.
5) The Scrum Alliance does not help you with nothing. You need to pay per attendee to the training 150,- US $. This money is spent in the organisation of a NON Profit company.
6) Nobody can make money based on the work of others. The Scrum Alliance does not make money with you, because they do not make money using the trainers. No trainer can make money on trainers.
7) The Scrum Alliance or trainer does not certify anyone with the promise they will make money. The do certify that you, who apply is able to run the job. It is a certification program.
8) People who want to start a business doing Scrum … feel free. You will be successful if you are good in what you do AND if you are a good marketing and salesman.
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[1] http://en.wikipedia.org/wiki/Pyramid_scheme

„Mut“ ist jener Wert von Scrum, mit dem sich Boris Gloger am stärksten identifiziert. Er hat in seinem eigenen Leben keine Angst vor radikalen Entscheidungen und vor dem Glauben an eine Idee. Für kein Geld der Welt würde er sich Regeln unterwerfen, die keinen Sinn machen. Er glaubt an Scrum, weil es nicht nur bessere Produkte, sondern auch eine bessere und menschlichere Arbeitswelt schaffen kann.
  • Anonymous

    And where does the rather pricey 7500 a year go?
    And what does the CSMT get for that fee?

    Same question applies to the 50 a year fee SCM?

    • http://borisgloger.com/members/boris-gloger/ Boris Gloger

      Hi ANONYMOUS! Strange question. The fees are necessary to run…. Gatherings, Community work, paying salary of people, organise meetings, pay flights, pay the development of a website, …. fund Scrum User Groups …. a lot of work that you need to pay in our society.