Online Income Opportunities: Avoiding Scams!
If you’ve been using the internet in the last few years, then you’re likely to have been pitched for a variety of online income opportunities which involves paying out a membership to join.
Many people shrug these off as scams. Not entirely true, there’s a lot of scams out there, but there are genuine opportunities available than can be perfect for some of you.
This article will go into detail on what to look for when sussing whether a company is a scam or not. Allowing you to make your OWN informed decision on whether to join or not.
The first thing you’ll see for almost all online income opportunities is screenshots of banks, Paypal accounts, back offices, sales statistics, some even just take a picture of a wad of money… The point is they’re trying to prove that it works.
The first question you have to ask yourself is where is this money coming from?
Are they making it from selling or using an actual product? Or is it only coming from affiliate commissions?
If it’s the latter, you should just move on because it will not last.
Additionally, it’s illegal for a company to charge you a fee just to promote that same thing to someone else. There has to be a product. There’s absolutely nothing wrong with people earning extra from referral commissions, unless it is the ONLY thing that is making the money.
What’s the job then?
The next thing you need to have a look at if you decide to do a bit more digging is what you actually have to do to make money. This could be anything that requires you taking action. For instance with Direct Selling you sell make-up to others, with Profit Accumulator you’re making new accounts on betting websites and placing 2 different bets each time, with Amazon FBA you’re buying stock and sending it into Amazon, There has got to be something you do to make money for it to be worth considering.
If it promises passive income like so many of them do, you have to do the logic. Can it be passive? A website you set up with lots of articles, banner advertisements and promotions could become a passive income. But you’d have to do the hard work first to make it a successful website that turns a profit. There really isn’t anything that will automatically turn your money into more without enormous risk of losing it. Some online income opportunities are really just high risk investment opportunities, disguised as a business. You can sure that the only business you’ll be doing is investing more money and convincing others to do the same.
To many this may sound like simple logic and common sense but still thousands of people fall for online business scams every single day!
Research, Research, Research!
So if you think you’ve found something that ticks both those boxes, it’s time to go to your good friend Google. Now please be careful with Googling companies. You will find a lot of “Reviews” that have a link to join at the bottom. Read with care because 9 times out of 10 it will be a sales pitch. My personal technique is to look at both the successful people (The one’s pitching it on high-up Google results) and the people who are calling it a complete scam. I look at the reasons why they’re calling it a scam. Was it just too hard? Were there hidden fees? These are the sort of things you should be looking for. The first one isn’t a problem if it was just a few people who found it hard to make money, if you think you have the skills to succeed where they failed, you might be alright. The second though is a massive red flag and should be taken into serious consideration if you still want to go for it.
The next step is working out all the start-up costs. Make sure you know exactly how much it costs to join, and if you have to purchase any extras to really make it work.
[highlight]The golden rule is never put in more than you can afford to lose, especially when you know very little about it.[/highlight]
Cyclers and Matrix Online Income Opportunities
On top of that you have to understand that some very dodgy companies will pay out… For a while. These are things such as “cyclers” (Remember that disaster they called Achieve?). These are pure Ponzi schemes that promise returns around 800%. They’ll include some “free marketing ebook” with your paid membership… Why? Well this is the “Product” you’re buying to keep the scheme on the right side of the law. What makes a Ponzi illegal is that the only way to make money is from new members signing up. If you see some shoddy e-book or something that is nowhere near worth the membership fee, then that’s your red flag right there.
Whilst some people time everything right, jump into a company like that, make the first pay out and run with their money, the vast majority of members will lose everything they put in. If a company has an 800% ROI (Return of Investment) and they can only pay you through new member sign ups, that pretty much means that for every person who gets paid, 7 people do not.
Eventually, people stop joining (Market saturation is quicker in these opportunities, for obvious reasons), and that means the company is not making enough money to pay out anybody and that’s if they don’t get shut down by authorities first. Either way, the money stops, the payments stop and everyone is left losing out except for the lucky few who got paid right at the start.