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Gifting Programs are NOT Businesses!
I get so tired of seeing so-called "business opportunities" that are nothing more than chain letters (which happen to be illegal in the U.S.). You know the kind - you send $5 to 10 people and they send $5 to 10 people and then move your name up on the list, and eventually your name is at the top of the list and you'll end up with a million people sending you $5 each. (Yea, RIGHT!)I just finished reading the sales letter for one of these programs. (One of my newsletter subscribers called me with some questions about it so I started digging around.)
It's enough to make me SCREAM!
The owner of the site is using a mild form of "Rich Jerk" tactics to get people to buy into his crap. The program looks like a combination of a chain letter and an envelope stuffing scam.
I will give the guy some credit, though. He's upfront about what his program is. I don't get the feeling at all that he's trying to hide anything. He's even got his phone number on the website and a toll free number to call for automated messages that contain more information about the program.
But that doesn't change the fact that gifting programs are illegal in the U.S. and probably some other countries, too.
What bugs me the most about this one is the cost - $1,000 minimum that you "gift" to another member PLUS $100 fee for your "team leader" whose job it is to actually recruit your prospects PLUS $300 membership fee. (The membership fee gets paid every 6 months!) So just to get started at the "lowest" level you'd pay $1,400!
And believe it or not, there are 2 levels higher than this, too. You would spend over $5,000 for level 2 and $13,000 for level 3!
The reason it's so expensive? According to the owner of the program "you have to think of price vs. profit and be concerned about value."
Excuse me? VALUE? Let me tell you what you'll get for your money:
Some FLYERS AND POSTCARDS that you mail out (you buy the stamps) with your referral ID on them to send people to this guy's website. Once there, IF they sign up for his "newsletter" (I use that word loosely) they'll receive more information on how the program works.
Oh, and the other reason it's so expensive is because "this program works so it's not cheap. With $50 or $100 programs you won't make much money." And he's "been doing this for 9 years and made 20 million dollars" so that makes him "the cash gifting expert."
And, get this... the guy had the gall to say that sometimes people ask if they can get started for free and pay him when they've received some money. His answer is no because "people who want something for nothing have the mentality of a thief."
Ummm, WHO is a thief???
I mean, let's get serious here... how quickly would YOU jump on this "opportunity?" If your answer is 'not very fast' then just how many people do you think you'll be able to sign up who are willing to "gift" you $1,000 or more?
And this guy is collecting a minimum of $600 a year for "membership fees" from each poor soul who falls for this so HE'S making money. I'm sure it makes no difference to him if anyone else makes money or not.
My first thought after reading about this program was to turn the guy in to the FTC. Then I noticed this (I paraphrased it here):
"This program is owned and managed by a private offshore company, comprised of only foreign entities and is completely outside of U.S. and Canadian jurisdictions."
Funny, because his toll free phone numbers are either in the U.S. or Canada and his voice (assuming it's him) on the automated call I listened to is also either American or Canadian.
Now back to my title - Gifting programs are NOT businesses...
PLEASE don't fall for the kind of crap that I just described. If you want a business then for Pete's sake start a REAL business.
Get your own website and/or product, or at the very least get an autoresponder, build a mailing list and sell affiliate products to your list members.
But DON'T get caught up in all the get rich quick garbage and always remember if it sounds too good to be true it probably is.
More Information:
Denise Hall is the publisher of Home Business on a Budget Newsletter which is dedicated to helping you succeed without spending an arm and a leg. Subscribe for bi-weekly issues and marketing updates at http://www.home-business-on-a-budget.com/subscribe.htm
This article may be reprinted with the resource box intact.
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