Scams & False Promises
Literally millions of people are trying to earn a living from the Internet,
than those actually doing it. Ambitious people are being misled severely.
Not only are they being bombarded by millions of "get-rich quick"
emails and websites, they are being lured into trying all sorts of scams and
schemes - It's DISTURBING!
A member of one of my downlines emailed me and said he had found the program
that was going to earn him $9000 in his first month. My objective reply was
kind, polite, he was a newbie after all. Do you think this person listened?
No; got way to caught up in the hype!
Please people DO NOT GET FOOLED BY THE HYPE!!
It's time to wake up and smell the coffee! If you do not want to fall victim
of the next hyped up program read on....
Other interesting pages:
| Why do people fail online? | Advertising
Concepts Explained |
The Truth First
It’s deeply disturbing looking at the junk within online marketing
scene. Just too many scams and unrealistic programs floating around. What’s
worse is most people only have themselves to blame for getting burnt, because
of their lack of due diligence.
Some marketers even prey on human stupidity or greed to make a buck. And if
you join these scams it becomes worse for us all, making you part of the problem.
Do not get me wrong, many of us mistakenly promoted junk in the past, but
let’s keep it in the past
Most people outside of the network marketing business arena treat all work
from home businesses as scams. Many sad stories told by failed newbie marketers
being the main reason people have this view.
What can we do to stop it? There is no real way of stopping it, as long as
humans are greedy. The best you can do to help is not to take part in scams.
Educate yourself and your prospects – then keep passing the word on.
The Spam situation is similar too. If people stopped buying from spammers,
the spammers would give up – think about it.
False Promises
If you’re still very new to the scene the following lines are examples
of false promises:
Make $2000 in your first week!
Make $6000 in your first month!
Be a millionaire by the end of the year!
I just joined and made $200 over the weekend you can too!
Be financially free in 6 months!
Make money fast! – Get rich quick!
The truth is it never happens that fast when you are new. What makes these
lines worse is the BIGEST LIE OF ALL usually follows them…. “You
don’t need any special skills just a computer and be connected to the
Internet”
Whatever the wording maybe, the truth is you need to learn many new skills.
Success only comes easy to those with the right attitude and the willingness
to learn.
Scam Systems
First take at a look at the most obvious illegal systems: Pyrimids &
Ponzi Scemes. Try and relate to programs you have seen available to you today.
Read further on to see more examples of systems that will lead you down the
wrong path.
Pyramids
A pyramid scheme is an illegal multilevel marketing program in which people
pay an entrance fee (often a large fee) for the opportunity to recruit others
to do the same. Pyramid schemes typically have no products. Those chain letters
in which you may have seen floating around, where you send money to the person
who sent you the letter, then you forward the same letter to a number of others
is an example of a pyramid scheme.
Ponzi Scheme
The term Ponzi scheme is often misused as a synonym for a pyramid scheme.
The essential difference is that Ponzi scheme participants are generally not
offered any direct financial incentive for bringing in other participants.
Ponzi often is associated with investment programs. Although there is no direct
reward for recruiting; people often tell their friends about the investment
opportunities. The fact that early participants in a Ponzi scheme are paid
off from the monies collected by later participants is normally known only
to the operator of the Ponzi scheme. The participants are instead offered
a sad story to explain their loss of high investment returns.
H Y I P
High Yield Investment Programs
Investment programs that give a high return on your money. HYIP are generally
considered to be dodgy programs Quite often the interest returns are so fantastic
they’re unrealistic.
For those HYIP’s with interest rates closer to reality money can be
made if you get in and out quick before they close down. Many people join
these knowing the risks involved. Some are so bad that the people running
just clear off with all the money. These programs play on human greed and
lots of money changes hands. People have been known to lose thousands and
tens of thousands of dollars in these programs. Many work the Ponzi system
to keep it alive.
Randomizers
You have probably seen many of these around, but do you know how they really
work?
The way a randomizer works is you pay in a certain amount of money. Part goes
to the admin; part goes to a random member. Well that’s the theory anyway.
But the truth is if you do nothing you’ll get random nothing!
The first thing you need to understand is that they are not legitimate. In
order to continue, they need you to recruit new members, in other words, a
pyramid scheme! Think about it and take a closer look at any randomizer. No
real products. No real services. Just money exchanging hands, with an admin
getting lots of it. Do you really want to get involved with that? Now, you
might be saying "there are much better Randomizers out there now"
doubt if you're right. But one thing is true, there are also way too many
of them out there. In fact, I keep seeing ads that say: "To make money
with a Randomizer, start your own!"
What about all those testimonies from people saying their making money? They
have all kinds of endorsements from happy members on their websites! Are you
sure about that, or are these simply made up claims?
The only people making real money are the owners of the randomizers. Also
note that many randomizers are now defunct. Owners are making a quick buck
and disappearing.
No matter how you look at it, randomizers have all the hallmarks of a pyramid
scheme. If you do not want to get suckered, avoid them.
Matrix, Forced Matrix and Matrices
You probably would have seen many different types of matrices. You may have
been involved in some too.
These programs claim that all you have to do is join their 3x5 or similar
forced matrices and you’ll be on your way to earn thousands of dollars.
It sure it seems very attractive to join. After all, each person is only
required to refer 3 people. Then, because it is a forced matrix, it means
your upline’s referral will overflow and go under you when they have
already had referred more than their 3 people.
Well, if you have joined any matrices, just ask yourself, are you earning
thousands of dollars yet?
If you answered “yes” that could be because you got in early
and promoted it very well. Quite often the honest answer is “no”.
Why what’s the problem?
The matrices problem is simple. Although the concept of a “Forced Matrix”
sounds nice, it simply won’t work because 95% of the people simply do
not refer. This leaves the remaining 5% of the people refer the entire matrix
of thousands and thousands of people all by themselves. The matrix eventually
falls apart
Note also: if you join one of those pre-launch “downline clubs”
watch how many people don’t part with their money when it’s time
to enter the matrix.
Not all matrices are scams but you need to look at the program carefully.
If every one in the matrix started helping each other, supporting each other,
and motivating each other to refer at least the minimum required people, filling
up the matrix and start earning that thousands of dollars will no longer be
a dream.
Email Fraud (1)
There is the well-known Nigerian scam and it’s similar descendants.
Starts off with a very wealthy and/or important political person sending a
plea for help. It ends with this person needing your bank account to hide
their money while offering you a genereous sum for your service.
People actually do fall for these emails. They recently caught someone running
this scam in Sydney Australia. The scammer made millions before going to jail.
Egold, Paypal, Ebay and other various banking organizations fake emails
These are the real clever. They look so real it’s not funny! These
html emails arrive in your inbox logos, sign-in forms and all.
The usually ask you for verification details, personal identifying details.
There are few obvious signs on closer inspection. For starters that are often
not personalized and the hyperlinks are going to different and unusual website
domains. The most important rule of thumb though, is the fact that organizations
of this type simple do not send emails requesting verification.
Federal Trade Commission Names Its Dirty Dozen: 12 Scams (1998)
Although this document is more than six years old, nothing has changed.
Read this document, you will be able to make relationships between these scams
and programs you’re looking at joining today.
http://www.ftc.gov/bcp/conline/pubs/alerts/doznalrt.pdf
(Download Printable PDF)
http://www.ftc.gov/bcp/conline/pubs/alerts/doznalrt.htm
(web-page)
Extra Advice
Take a look at www.directfraud.com & www.perfectjustice.com
Another good idea is to frequent the forums, many have dedicated sections
for scams or consumer alerts. See the forum page.
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