In this down economy that we are living in, many individuals are looking for something to help get them back on top, or at least SURVIVING. Because of this need, and oftentimes desperation, people will often look to anything to help pull them out of their negative situation.

Unfortunately, all too often this can lead to them being taken by some form of a scam. One such scam that present itself as a lucrative and GUARANTEED opportunity is called a gifting program.

A gifting program is touted as a unique way for folks to “share” money with each other involved in the program and build true wealthy by recruiting others as well. Basically, all you are doing is giving money to those who recruited you, and in turn, trying to recruit others below you to give YOU money. Here is an example:

* You sign up and pay $1000
* That money is split several ways and given to those above you
* You then sign up 4 people underneath you who each pay $1000
* You receive some of this money, and in turn, some goes to those above you
* The 4 you signed up each then sign up 4 people…and so on, and so on…

As you can see, there is NO product changing hands, only money. This makes this type of program illegal in most states. The fact of the matter is this type of model cannot continue for several reasons. One is that at some point, the chain always breaks when someone refuses or cannot recruit the required number of people to join.

This leads to momentum being lost and the program eventually comes to an end. Thus, some people made their money back or even did quite well, while those who were more recent to sign up lose everything. The second way simply deals with mathematics.

If this model were to continue indefinitely with new members doubling or quadrupling membership by adding recruits, at some point you literally run out of people. Once the pyramid got this big, there is no way to sustain it and the majority of people who paid would end of losing their money.

Listen, any program that doesn’t involve and actual product or a service is a scam, bottom line. Walk, don’t run, from gifting programs, and make sure your loved ones do the same.

Through the years I’ve discovered that most information out there discussing how to make money online has turned out to be pure B.S. I know how hard it can be when first starting off on the Internet as a noob. Not knowing which business plan to follow.

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