Just about every day I run into a scam or two online, and I really enjoy writing about them. It's important that someone, somewhere identifies these scams so that real people trying to make real money are able to avoid them.
The truth is that when we start out, it's very hard to identity who is legit, and who isn't. Most of us are just excited to make money, and we are too trusting. I signed up for 3 crap programs before I finally found one that worked for me.
What is Cash Gifting
(sometimes written as cashgifting)
This is a program where people send each other various amounts of cash through the mail. The idea is that if you are from the US, you can give a certain amount of cash away ‘tax free'. By organizing this gifting into different levels and getting people in your ‘network' to send you cash, you can make money with very little work.
People that join your network must send you X amount of dollars. Then, because they are now in the network, they have to build a team of people to send them X amount of dollars, of which they have to send you a percentage.
THIS IS A PYRAMID SCHEME. DO NOT GET INVOLVED
Is it Illegal? Does it Work?
No matter what a cash gifter tells you, and no matter type of mental gymnastics he/she goes through to justify his particular cashgifting program, remember that cashgifting is illegal in many countries. Regardless of its legal status however, you need to know that it simply doesn't work unless you are on top of the food chain.
One of the main issues with cashgifting is that it is NOT tax free. Whether or not you declare the taxes depends on your own personal value system, but because ‘cash gifting' is a ‘business' (a dubious one albeit), you are required to pay taxes on the money.
In addition, cashgifting programs have been banned from advertising on YouTube and from posting promotions on many social media networks. Cash gifters are frequently spammers. These are the idiots that post things like “I made $7000 last month with this amazing program. Go to this URL to find out how.”
Do you want to be one of these guys?
Is The People's Program Any Different?
I discovered The People's program off of a blog comment on one of the legitimate bloggers I follow on Google plus. I ran into this guy's website Cash with a True Conscience. His name is [removed]*. His blog featured pictures of him living the laptop lifestyle, all signs of his supposed success. In online interviews, he accused 99% of the worlds population of “whoring themselves out for money”, while he, the enlightened being, was able to achieve a higher level of superiority by giving away money.
No, that's not a joke. The whole premise of cash giving without paying the IRS is that you give money away without expecting anything back.
This also fits into the Law of Attraction bullshit where all you have to do is think it, and it comes true. By conning people into giving him money so he can live in Thailand, he has truly become un-whored. I would really like to see how his downline is doing.
Cashgifting is not an industry, it's a scam, regardless of a program. The People's program is not any different.
*Note: The person originally mentioned in my post here has since deleted his cash gifting blog and asked me to remove his name. The good news is that he's given up the cash gifting thing. The bad news is that this is typically how scams operate. The guys at the top make a bunch of money, tap out their downline, then move on to the next big thing.
Even if you don't care about the legal status of the program, and even if you think that you could make money with this program because you have tons of friends that are willing to send you cash through the mail, there are better alternatives.
With any program, you're going to have to work. Yes, even with a cashgifting program, if by some chance you end up on the top of the pyramid, you are going to have to work to get there, and work to stay there.
With all this working, why not build a legitimate business? There are many alternative, legitimate business models for legal, effective, sustainable, useful, and helpful businesses that you can build online. Yes, they also require a lot of work. No, they are not hyped with pictures of traveling and piles of $100 bills.
There are a lot of comments and angry cash gifters that will ensure you I'm a liar and don't know what I'm talking about. If you are tempted to believe them, please see this question and the top rated answer on Yahoo for a list of US states and their position on cash gifting. I can't comment on non-US places, but Europe, Canada, and AU/NZ are usually similar.
I used to try to be objective and provide unbiased advice, but honestly over the years my #1 rated training remains the same. You learn something called “affiliate marketing” and it's the same training I used to get started in online business and it's the training I always recommend for newbies. I just can't recommend anything else. You learn how to create a long-term online business, and get the support you need as you are getting started.
Ok ok, so I was reading an article on Forbes the other day and it turns out that you are allowed to gift up to 13 grand (or something like that) per year. I hate to admit it, but I was wrong on that point.
If you read the details of this program on [removed]'s blog, he's very very careful and stating that you are gifting money out of the goodness of your heart. He's not “selling” or “promoting” because that would be a pyramid scheme or MLM. If you are going to send money to strangers based on some ephemeral concept that karma will somehow magically bring you back more, then you are crazy. Are you very clear on the differences between what's a “club” or a “business” and what's a “payment” or a “gift”. To me, it's playing with fire.
What's more, is that if you rely on this for income the IRS can still tax you. Sure, you can probably evade the IRS and stay under the radar, but are you willing to take that gamble?
TPP's website is no longer working, and [removed] has changed his schtick from cash gifting to blogging advice. Just another prediction of mine that was right, same as Wake Up Now which was shut down recently as well, despite 100's of comments telling me it wasn't a scam.
Whatever type of product you decide to promote, it's important to own your own website to grow your business.
Parties only work if you have a network of friends with money in their pockets. Network marketing only works if your friends are interested in joining business opportunities.
With a website you can reach the entire world, and only promote great products to people interested in what you have to say. Plus, you open up doors to multiple streams of revenue like affiliate sales, ad click revenue, paid advertising, and even selling your own digital products.
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