Cash Gifting Is Illegal
A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. It has been known to come under many guises. Some famous examples including the massive Albanian Pyramid Schemes of 1996 were technically not Pyramid schemes but Ponzi schemes.
Gifting, or cash gifting, obviously fits within these limits of the Internet scams.There are other commercial models using cross-selling such as multi-level marketing (MLM) or party planning which are legal and sustainable, although there is a significant grey area in many cases. Most pyramid schemes take advantage of confusion between genuine businesses and complicated but convincing moneymaking scams.
The essential idea behind each scam is that the individual makes only one payment, but is promised to somehow receive exponential benefits from other people as a reward. A common example might be an offer that, for a fee, allows the victim to sell the same offer to other people, or receive bonuses through other people they refer. Each sale includes a fee to the original seller.
Clearly, the flaw is that there is no end benefit; the money simply travels up the chain, and only the originator (or at best a very few) wins in swindling his followers. Of course, the people in the worst situation are the ones at the bottom of the pyramid: those who subscribed to the plan, but were not able to recruit any followers themselves. To embellish the act, most such scams will have fake referrals, testimonials, and information.
The point being made here is that cash gifting programs are nothing more than scams for the simple reason being that there is no value or product being purchased. You simply buy into the gifting program, and try to coerce others into doing the same thing.
Most of these cash gifting programs try to cover up the full itent of making money for the owner of the business, by using tactics like claiming to be helping others achieve financial independence. This could not be further from the truth.
Are cash gifting programs illegal?
Not that long ago it seemed that every other week there was a newstory about new gifting programs and clubs to make cash at home being carried out in various parts of the country. With names like "Circle Of Friends", "Women Helping Women", "The Wisdom Club" it's easy to tell that many of these cash gifting programs were designed to appeal specifically to women.
People pay to join a "private gifting club," billed in promotional materials as a private club where members eager to help new friends -- often from within their own neighborhood or church group.
According to the Federal Trade Commission, the truth is that these gifting programs and clubs to make cash at home are illegal pyramid schemes. New club members give cash "gifts" to the highest-ranking club members, with titles such as "captains." And they're promised that if they get additional members to join the club, they, too, will rise to become captains and receive money - far more than they initially paid to join the club -- from newer club "friends."
Its time that people become fully aware that trying to make money at home by stuffing envelopes, or in this case, cash gifting is not the way to build a stable home business income.
Building a strong and viable home business requires work, intelligent arranging of thought patterns, and a never say ie attitude that you will make it work.
ItsGoodBusiness.net
We say buying leads is a waste.
We say that buying customers is the way to build a business.
We say that following the ItsGoodBusiness.net business model si the sound way to begin the process of building stable and long lasting hom businesses.
Gifting, or cash gifting, obviously fits within these limits of the Internet scams.There are other commercial models using cross-selling such as multi-level marketing (MLM) or party planning which are legal and sustainable, although there is a significant grey area in many cases. Most pyramid schemes take advantage of confusion between genuine businesses and complicated but convincing moneymaking scams.
The essential idea behind each scam is that the individual makes only one payment, but is promised to somehow receive exponential benefits from other people as a reward. A common example might be an offer that, for a fee, allows the victim to sell the same offer to other people, or receive bonuses through other people they refer. Each sale includes a fee to the original seller.
Clearly, the flaw is that there is no end benefit; the money simply travels up the chain, and only the originator (or at best a very few) wins in swindling his followers. Of course, the people in the worst situation are the ones at the bottom of the pyramid: those who subscribed to the plan, but were not able to recruit any followers themselves. To embellish the act, most such scams will have fake referrals, testimonials, and information.
The point being made here is that cash gifting programs are nothing more than scams for the simple reason being that there is no value or product being purchased. You simply buy into the gifting program, and try to coerce others into doing the same thing.
Most of these cash gifting programs try to cover up the full itent of making money for the owner of the business, by using tactics like claiming to be helping others achieve financial independence. This could not be further from the truth.
Are cash gifting programs illegal?
Not that long ago it seemed that every other week there was a newstory about new gifting programs and clubs to make cash at home being carried out in various parts of the country. With names like "Circle Of Friends", "Women Helping Women", "The Wisdom Club" it's easy to tell that many of these cash gifting programs were designed to appeal specifically to women.
People pay to join a "private gifting club," billed in promotional materials as a private club where members eager to help new friends -- often from within their own neighborhood or church group.
According to the Federal Trade Commission, the truth is that these gifting programs and clubs to make cash at home are illegal pyramid schemes. New club members give cash "gifts" to the highest-ranking club members, with titles such as "captains." And they're promised that if they get additional members to join the club, they, too, will rise to become captains and receive money - far more than they initially paid to join the club -- from newer club "friends."
Its time that people become fully aware that trying to make money at home by stuffing envelopes, or in this case, cash gifting is not the way to build a stable home business income.
Building a strong and viable home business requires work, intelligent arranging of thought patterns, and a never say ie attitude that you will make it work.
ItsGoodBusiness.net
We say buying leads is a waste.
We say that buying customers is the way to build a business.
We say that following the ItsGoodBusiness.net business model si the sound way to begin the process of building stable and long lasting hom businesses.
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