You're at your friend's house for coffee or receive an email from an acquaintance. They are really excited about this new club they have joined and have to tell you about it. It will change your life. They explain it's a "gifting" club. You put in money, often between $500.00 and $2000.00, and the money is used to help women. Then after, you gain back up to $40,000.00 for your "gift". The friend assures you it is completely legal, after all the money is a gift, not an investment. Wrong.
Gifting clubs are not legal. They are pyramid schemes. These "clubs" are bound to fall at some point and leave many people at the bottom out of thousands of hard earned dollars. Don't be fooled by the term "gift" making it different than a pyramid scheme. A gift is given with no expectation of getting anything in return. In these clubs, gifts are given with high expectations of returned money plus some. The term "gift" will not make the scheme legal or legitimate.
Often clubs operate within social circles. The people who know each other well. They trust each other. Some of the people in this type of club do not know that they are party to an illegal pyramid scheme. When they get others involved, they honestly believe it is a good opportunity to help people and make a substantial amount of money as well. They may even tell you that it is condoned by the authorities. It, of course, is not condoned by authorities. Anyone participating in a gifting club scheme may be charged or prosecuted for their part in the scam.
The people involved that do know it is illegal use justifications to make them feel it is okay. They think that if it keeps going, a lot of people will make money and prosper. Like a chain letter, they put responsibility on the next one in line to recruit their own members to perpetuate the incoming money. Like all chains and pyramids, there is always a point when people stop joining in. Then all but the top of the pyramid lose their money.
So if you hear of a gifting club, often called names such as "Circle of Friends," "Women For Women" or "Helping Hands Club," remember it is illegal. The only way it will change your life is by adding a criminal record to your name.
www.makemoneyhonest.blogspot.com
- Related Articles
- Related Q&A
- Filipina Lady Dating -- Online Dating Scams
- Internet is Full of Business Scams
- Money for Gold Jewelry - Sell Jewelry and Avoid the Money for Gold Scam
- Different Kinds of Internet Scams
- Beware of Scholarship Scams ! - Common Scholarship Scams
- Online Dating Scams: What to Look for and How to Protect Yourself
- Show Me the Money : How not to Fall for Lines From Internet Scams
- Lottery Scams - Don't be the Next Victim
Success University Home Business Opportunity
By: Colon Bolden | 29/12/2009What is Success University? It is a program comprised of educational videos and Teleseminars that you can watch for half the ordinary cost. You can learn how to be successful and make more money than you ever expected.
Residual Cash Gifting Millions and Nice People Give
By: Brother John Hostick | 29/12/2009See what residual cash gifting and the Nice People Give system can do for you with their automated cash gifting...
Why Most MLM Distributors Fail - Overcoming Some Common Issues
By: Jim Green | 29/12/2009Yes, it's true that most MLM distributors will fail, although this is the case with most traditional business startups, too. Here are some tips to minimize the probability of initial failure and easing the bumps in the road toward eventual success.
Why Just The Right PPC Campaign Management Brings in Lots and Lots of Cash
By: tomer | 29/12/2009So you spent all your time and energy building the perfect website. Now you want to share the fruits of your labor, and maybe even make some money on the side through your online ads.learn how to do it with PPC advertising.
Affordable PPC search engine advertising
By: tomer | 29/12/2009PPC search engine advertising is by far the most affordable form of advertising available. PPC search engine advertising is a flourishing business that by 2010 is expected to reach more than $ 9 billion.learn how to do it right.
Tips To Do Online Business
By: Anna Jones | 29/12/2009Gone are those days when the online business was supposed to be a miracle. Now it is certainly not so. You can do the online business while sitting at your home. But do you feel that the online business is successful. The online business is certainly very successful. There are some people who prefer to do the business right fro their home. This is certainly a very good idea. But you need to be in right frame of mind and you also needed to learn lots of tricks.
Can You Really Make Money Online and Become a Millionaire?
By: Simon Stepsys | 29/12/2009A lot of people ask if one can really make money online and become a millionaire, and all they get is yes, if you're a genius or an expert on the computer technology. And as the majority of the population is neither a computer whiz nor an all around guru, people just end up giving up on the whole industry and settling on what they think they deserve.
Cash and Pay-per-click Affiliate Programs
By: tomer | 29/12/2009PPC affiliate programs can be a powerful venue to make money from the Internet. A partnership with an affiliate merchant is a win-win situation for the merchant and the affiliate: sales are soaring because of exposure and traffic while the affiliate is earning good cash.
How to Add a Tip Jar to Your Blog
By: Brenda Moody | 07/01/2009 | BloggingLet's face it, bloggers do spend a lot of time on articles, links and trying to provide good information for their readers. The work does pay off, but it takes some time before a blogger can have enough of an audience to impact the money they make.
Deceptive Business Ads for Making Money
By: Brenda Moody | 06/01/2009 | Online BusinessA search for ways to make money online will result in an inevitable bevy of websites devoted to new business systems and "gauranteed" money making systems. The trouble with the pages you land on is that they seem to be designed to get your money before you know what you are paying for. These ads are typical in many ways. Knowing how to read between the lines will save you money.
Top Ways to Promote Your Online Business
By: Brenda Moody | 04/01/2009 | Online PromotionMarketing is the core of many business ventures on the Internet. The types of businesses that depend on a marketing stragedy are:
How to Create a Money Making Blog
By: Brenda Moody | 08/12/2008 | Online BusinessThere are key points that need to be utilized in order to make money with a blog. The great thing is that many of the methods that will help you make money don't cost you anything but time.
Get Rich Quick Ads
By: Brenda Moody | 28/11/2008 | Business OpportunitiesA search for ways to make money online will result in an inevitable bevy of websites devoted to new business systems and "guaranteed" money making systems. The trouble with the pages you land on is that they seem to be designed to get your money before you know what you are paying for. These ads are typical in many ways.
The People Behind Internet Scams
By: Brenda Moody | 10/10/2008 | Online BusinessHave you ever wondered what kind of person would purposely scam innocent people out of their money on the Internet? These people thrive on the invisibility of the Internet. They have the ability to hide their tracks easily, disappear quickly and easily, and are rarely caught by authorities. There are two types:
Envelope Stuffing - the Stuff Scams are Made of
By: Brenda Moody | 02/04/2008 | Home BusinessEnvelope stuffing scams have been here long before the Internet gave them a new way to entice people. Find out what envelope stuffing work and work-at-home assembly really is.