Warning: Invalid argument supplied for foreach() in /home/rdsanfor/public_html/wp-content/plugins/affiliate-link-manager/index.php on line 516
pyramid scheme Archives - R. Darren Sanford, CPA, CGMA
Oct 122013
 
Please Like and Share:

See on Scoop.itNetwork Marketing

Marketing, business – Is Network Marketing Just a Scam? – Entrepreneur.com (Lets discuss what it isn’t so you can learn what it is.

Great article on this business model….

R Darren Sanford CPA‘s insight:

The scam truck

The scam truck (Photo credit: jepoirrier)

As a CPA, I’ve seen and read my share of financial scams.  Where one is asked to invest large, or sometimes even small, amounts of money with the promise of becoming rich in terms of dollars within a very short time, there is generally the presence of a “scam.” Scams, pyramid schemes, and Ponzi schemes are all examples of activities in which individuals lose money with little to no hope of getting it back.  Unfortunately, a lottery mentality is the origin of the loss and those who perpetrate the scams use it to their advantage. Make note here that a scam tends to involve the absence of a product or service to be sold.  That is, money is given to the “scam” with no corresponding exchange of a product or service other than the hope of becoming wealthy in a very short period of time.

Fortunately, there are many legitimate business opportunities which use the network marketing, or mlm, model.  Selling products or services (retail income) and teaching others the skills to do the same (residual income) are the primary revenue producers in network marketing.  There are various types of compensation plans so it’s important to do one’s due diligence and research with regard to how he or she will generate income.Only through hard work and determination, as is also the case with the typical brick and mortar business, will one be successful in network marketing.  It is definitely not a get-rich-quick model.

If you keep your options open with regard to making money outside what you are currently doing, feel free to contact me.  I’d love to share a no pressure presentation with you and answer any questions you may have so that you can make an educated decision as to whether or not a career in network marketing is right for you.

Make it an awesome day!

 

See on www.entrepreneur.com

Enhanced by Zemanta

Disclosure of Material Connection: Some of the links on this blog are “affiliate links.” This means if you click on the link and purchase the item, I might receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Sep 192013
 
Please Like and Share:

Scam, as defined by Merriam-Webster dictionary, is a fraudulent or deceptive act or operation.  For example, someone calls claiming you have defaulted on a loan and will be arrested unless you immediately wire as much as $2,000 to them.  Recent economic events, including layoffs, have resulted in many individuals falling behind on loans and other types of debt.  Scammers use these situations to take advantage of those who have been a victim of these unfortunate circumstances.  There has been an increase in the number of telephone scams, as well as, email scams.

Other situations which generally involve a scam include, but are not limited to, the following:

  • Someone you do not know asks you to send money and keep it a secret.
  • A family you may know claims to be traveling and asks you to send money so they can get back home.  Generally, the communication will say they were a victim of theft.
  • An online seller or buyer insists you wire money to them or a third party.

If you’ve been subject to any of these situations, here are some tips to handle them:

  1. Ask the caller to provide official documentation verifying the debt.  If they don’t already have your address, they probably aren’t the lender they claim to be.  You have every right under the Fair Debt Collection Practices Act to ask the caller (whether legitimate or scam) not to contact you via telephone.  Insist that they contact you by mail.
  2. Do NOT provide or confirm any personally identifiable information.  That includes bank account, credit card, mailing address information.  Typically a scammer will already have a few bits of your personal information and only need a bit more to do significant damage to your finances, credit report, etc.
  3. You should report any suspicious call or mail to the Federal Trade Commission by calling (877) 382-4357 or visiting their website at www.ftc.gov.

Lately, I’ve heard of many individuals falling victim to various scams and losing large sums of money.  Please do not become a victim of these scammers.  Scammers will attempt to scare you with any tactic to get you to respond to them in the desired manner.  Just do NOT do it.

If you are promised money for doing nothing, it’s likely a scam.  Remember, if it sounds too good to be true, it probably is.

Disclosure of Material Connection: Some of the links on this blog are “affiliate links.” This means if you click on the link and purchase the item, I might receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Post Footer automatically generated by Add Post Footer Plugin for wordpress.