There is a huge amount of money to be made from scamming and tricking people. Unfortunately, there are also a lot of scammers out there who are trying to trick people into thinking that they have joined the ‘greatest investment opportunity of all time’ where they can make a lot of money quickly and easily. This article will identify a scam that is currently in the headlines and explain how you can identify the real deal from a fake.
Is It Real?: The Basics Of Internet Marketing System Scams
As the name would suggest, an ‘internet marketing system scam’ is a type of scam where you are tricked into thinking that you have joined a genuine business opportunity in which you will make a lot of money quickly and easily. The fact that you are misled about the true nature of a business opportunity like this makes it a scam, no matter how good the business opportunity itself may seem. The basic characteristics of an internet marketing system scam are:
- An incentive (i.e. financial or material gain) to convince people to join.
- The use of misleading and deceptive marketing techniques.
- The presence of a high level of sales involvement (i.e. cold-calling, chatting up) from the business opportunity’s representatives.
- A failure to disclose crucial information (i.e. the true nature of the business opportunity).
Is It Real?: How Do You Know If You Have Been Scammed?
The sad fact is that there is no way for you to know for sure whether you have been scammed or not. It is an impossible task to sift through reams of data to find out whether or not you have been tricked, especially because the scammers are very good at covering their tracks. It is possible that you could spot some red flags that would lead you to believe that you were being scammed, but unless you catch a scammer in the act, you will never know for sure.
The most effective way for you to know for sure whether or not you have been scammed is to consult with a reputable attorney who specializes in internet related litigation. This is because the US legal system takes a very dim view of this type of scam, and the companies and individuals behind these schemes often find themselves in court. In such instances, the attorney will be able to advise you of various legal actions that you can take against the perpetrators of the scam. While this may sound like an extremely drawn out and laborious process, the alternative is to remain deceived for the rest of your life, which is arguably a far worse scenario. Don’t worry though, once you are aware of the scam, you can take steps to ensure that you are not fooled again. For example, by researching the company thoroughly and cross-referencing any information that you can find regarding the business with other reputable sources.
What Type Of Business Opportunity Is It?: The True Business Opportunity
No, the type of business opportunity that you will be investing in is not at all what the name would suggest. This is because you are being tricked into thinking that it is, but in reality, it is something entirely different. It is important that you understand what the true business opportunity is before you get too involved in the hype and the sales pitch. In simple terms, the business opportunity that you will be investing in is a multi-level marketing scheme where you will sell a product (usually a dietary supplement) to people who then in turn will sell the product to their friends and family. What is more is that you will not be selling the product directly to the public, but to people who you convince to become ‘independent distributors’ of the product.
When you get involved in a multi-level marketing scheme like this, you are essentially joining a pyramid scheme, which are illegal in most countries. This is because the people at the top of the pyramid receive the majority of the financial rewards, while the people at the bottom are essentially providing a service and should not be financially rewarded for it. What is more is that the service provider is only really rewarded when someone at the bottom becomes profitable. Essentially, the whole thing is geared around recruiting as many people as possible and getting them to buy into the scheme. If you get too involved in this type of business, you could find yourself heavily in debt and unable to sleep at night due to stress. Make sure that you are aware of the risks before you get involved in this type of business.
Is It Real?: The Biggest Difference Between This And A ‘Real’ Business Opportunity
Just because a business opportunity is sold as an ‘internet marketing system scam’ does not mean that it is not real. In fact, the opposite could be true. As we have established elsewhere in this article, there is no way for you to know for sure whether or not you have been scammed. To the best of your knowledge, you could be participating in a genuine business opportunity, which is why it is important that you do your research before getting involved. What makes this scheme different from the rest is that the true business opportunity is much more complex than the surface level marketing would have you believe. As far as your money is concerned, it is essentially a glorified pyramid scheme, which can become quite tedious to get involved in. What is more is that you will be required to make a large initial investment, typically ranging from $5,000 to $20,000, and then wait for your money to ‘pitch’ (i.e. earn money for you). As an investor, you are essentially gambling that you can sell your product to enough people who will then buy it from you. If the product does not perform as promised or you lose money, you could end up completely broke.
In light of the above, unless you are independently wealthy or have money to spare, it would be best not to get involved with this type of business. At the very least, make sure that you are not putting your own financial security at risk. Instead, look into other types of business opportunities that you can get involved in, which in all likelihood, will not end up being a scam. In the meantime, consult with an attorney who specializes in internet litigation and be sure to steer clear of any further dealings with the company or individual who sold you on this scheme. Ultimately, you will not be able to take any money back from them, regardless of what they may tell you. The sad fact is that when it comes to internet marketing system scams and other types of Ponzi schemes, the money is often hidden away from the people at the bottom, but it is still taken. In many cases, the fraudsters behind these schemes will use a variety of tactics to trick people into parting with their hard-earned money, which they then use to perpetuate the scam. While some of these tactics are rather straight forward (i.e. the use of fake email accounts and websites), others are more complex and involve abusing trust or involving people who have a financial interest in the scheme. Keep an eye out for these red flags and you will be well on your way to avoiding getting scammed online.