If you have started looking for opportunities as a network marketer or you have spent some time working with such businesses already, there is good chance that you have heard about gifting programs. At first glance, gifting programs have a lot to recommend them, but before you get started with one, there is a lot that you need to be aware of. The first thing that you should know is that in many states they are illegal, and with this in mind, you need to take into consideration your location and local laws.
Essentially, gifting programs work the way that putting a dollar in chain letter and adding your name to the bottom of a list does. At it's most basic, you send a certain amount of communication to to people that you know or have contact information for and request that they send you money. Then, they in turn send out letters requesting the same. It plays on the fact that each person only has to send in a very small amount and that they will soon be rewarded for a very small amount of effort.
The issue with these programs is that they are not really businesses at all, nor are they a reliable way to make money. You will find that the people who you are hoping involve will decline, and then not only is the contribution they were to have made lost, but so is any revenue that came from the people below them. Gifting programs, while they can be quite widespread and can generate an impressive amount of money, will invariably collapse on themselves.
One of the popular aspects of the gifting programs is the fact that it hints towards generosity and generosity that will be rewarded at that. The fact is, the closer you are to the origination of the program, the more likely it is that you will get something out of it. There is often no way to tell how far it has progressed by the time it gets to you, and there is nothing that says that any of the people you contact will respond at all.
Some companies now use complicated software so no one can cheat anyone, the money goes straight to the company. But according to MLM Law, they might not be able to do this. Before I joined any gifting club, I would ask the owner if I could visit his office and speak with him first, especially if I depended to use gifting to allow myself to earn a full-time income.
The issue is that gifting programs are so simple to understand that they often draw people who would otherwise never touch anything like network marketing. There is no convoluted or complex compensation program, but chances are, there will be no compensation at all! Many people never even seen their initial low investment back in programs like these. However, I've personally met a few
A gifting program is a difficult proposition at best, and an illegal one at worst. Usually they are easy to identify, and you'll find that it is always better to give them a wide berth.
Legal And Ethical Considerations
This article will look at the legal,ethical and moral aspects of cash gifting programs like the Overnight Cash System. If cash gifting programs are really legal is a very hotly debated point. The ones who are in the programs will tell you it is all totally legal. This is taken from the The Overnight Cash System website:
By definition, Cash Gifting is the act of privately or publicly giving another person or entity a declared sum of cash (strictly as a gift) and giving it freely without coercion or consideration. Cash Gifting is not a loan or a payment for goods or services. Its called a cash gift because thats exactly what it is...a gift of cash.
Over the years, there have been many opinions and thoughts as to the legitimacy of Cash Gifting as a viable and honest means of generating cash. But at the heart of Cash Gifting is a fundamental principle that is often overlooked and convoluted with greed and the love of money..
This principle is quite simple: to help your fellow man (or woman) through giving, and in return be recognized and rewarded for your participation in the giving process.
Here is another opinion: If you checked the IRS code (such as the oft-cited Publication 950) you would discover that, if you get something or somethings in return for your gift, FROM ANYONE AT ALL, exceeding the value of the gift, your gift ceases to be a gift under the law. As the FTC warns people, gifting statements are an attempt to make an illegal transaction look legal to the laymans eye. They do not fool the professionals nearly as well.
As far as the ethical question: You are sending large sums of cash to a stranger and you are signing a gifting statement that you dont expect anything in return. You are doing it because you want other people to send you cash gifts. That is the truth. That is not expecting nothing in return.Your motivation is not giving: it is wanting to receive.
Is it right to be in a activity that gives you large amounts of cash for doing nothing at all? Did you give anything of value for the money you are receiving. Our whole system of money is based on giving some product or service in exchange for money. This is something very different where you are giving money to a stranger
with the hopes that others will give you money.
I personally was very close to joining The Overnight Cash System but something just didnt feel right about it. Do you really want to send a total stranger a large sum of cash and get nothing in return? Do you feel good about inviting others to do the same? If you are considering joining a cash gifting program I recommend that you be sure you feel it is right for you.
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